The S&P 500 is up over 16% this year, and you’re researching robo-advisors instead of just opening a brokerage account. That tells me something: you want to invest, but you’re not sure you trust yourself to do it right. You’ve seen the headlines about 500% winners and 70% losers, and the gap between “should invest” and “actually investing” keeps getting wider.
SoFi Automated Investing promises to close that gap with something almost too good to believe: a robo-advisor with zero management fees. No 0.25% annual fee like Betterment. No account minimums. No expertise required. Just answer a few questions, deposit money, and let algorithms handle the rest.
But here’s what you’re really asking: Is free actually free? And will a robot actually grow your money?
Quick Verdict: Is SoFi Automated Investing Worth It?
Yes, SoFi Automated Investing is worth it for beginners who need to start investing without overthinking it. At $0 in management fees—compared to the industry-standard 0.25%—you’re paying nothing for automated portfolio management, automatic rebalancing, and unlimited access to certified financial planners.
The trade-off is straightforward: you get simplicity and zero cost, but you give up control and customization. Your portfolio will track the market, not beat it. If that sounds like a limitation, you’re probably not the target customer. If it sounds like exactly what you need to finally stop procrastinating, keep reading.
| Feature | SoFi Automated | Betterment | Wealthfront |
|---|---|---|---|
| Management Fee | $0 | 0.25% | 0.25% |
| Account Minimum | $0 | $0 | $500 |
| Human Advisor Access | Free CFP access | $299+/year | Not included |
| Tax-Loss Harvesting | Yes | Yes | Yes |
Rating: 3.8/5 — Best for beginners who want the lowest possible barrier to entry. Not for experienced investors seeking control or market-beating returns.
What SoFi Automated Investing Actually Does
SoFi Automated Investing builds and manages a diversified ETF portfolio based on your goals and risk tolerance. You answer a questionnaire, the algorithm constructs a portfolio, and the platform handles everything from there: rebalancing, dividend reinvestment, and tax optimization.
The methodology is Modern Portfolio Theory—the same academic framework that powers most robo-advisors. Your money gets spread across low-cost ETFs covering U.S. stocks, international stocks, and bonds. The allocation shifts based on your risk profile: aggressive portfolios hold more stocks, conservative portfolios hold more bonds.
What you actually get:
- Automated portfolio management — Diversified ETF portfolios matched to your risk tolerance
- Automatic rebalancing — Portfolio maintained at target allocation without you lifting a finger
- Tax-loss harvesting — Available for accounts meeting minimum thresholds
- Unlimited CFP access — 1-on-1 sessions with certified financial planners at no extra cost
- Goal-based investing — Set specific targets (retirement, house, emergency fund) and track progress
- Fractional shares — Invest any amount, even $5
The CFP access is the hidden gem here. Most robo-advisors charge $200-$500/year for human advisor access. SoFi includes it free. If you’re a beginner with questions about how much to invest, which account type to use, or how to balance investing with debt payoff, this alone justifies the platform.
Start SoFi Automated Investing — No Fees, No Minimums
How SoFi Compares: The Real Math
Let’s do the math that matters.
On a $50,000 portfolio, Betterment’s 0.25% fee costs you $125/year. Wealthfront costs the same. Over 10 years, assuming 7% annual returns, that fee compounds to roughly $1,800 in lost wealth.
SoFi charges $0. You keep that $1,800.
On a $100,000 portfolio, the difference grows to $3,600+ over a decade. The larger your portfolio, the more you save—which is ironic, since SoFi is marketed to beginners with smaller balances.
The catch? There isn’t one, exactly. SoFi makes money through its broader ecosystem: banking, lending, credit cards, and insurance. They’re betting that if you start investing with them, you’ll eventually open a checking account (3.80% APY with direct deposit), refinance your student loans, or get a SoFi credit card.
This cross-selling model means the investing product is genuinely free. You’re not the product—you’re the customer they’re trying to earn more business from. Whether that’s a catch depends on how you feel about financial ecosystems.
| Portfolio Size | SoFi (10 years) | Betterment (10 years) | You Save |
|---|---|---|---|
| $25,000 | $0 | ~$900 | $900+ |
| $50,000 | $0 | ~$1,800 | $1,800+ |
| $100,000 | $0 | ~$3,600 | $3,600+ |
Assumes 7% annual returns, 0.25% management fee for Betterment. Actual results vary.
Try SoFi Automated Investing — Keep More of Your Returns
The SoFi Ecosystem Advantage
SoFi isn’t just a robo-advisor—it’s a financial platform with 12.6 million members across banking, lending, and investing products. That scale creates benefits most standalone robo-advisors can’t match.
The ecosystem play:
- SoFi Checking & Savings — 3.80% APY with direct deposit (no account fees)
- SoFi Credit Card — 2% unlimited cash-back
- SoFi Personal Loans — $5K-$100K at competitive rates
- SoFi Plus Membership — Bundled benefits worth $1,000+/year
If you’re going to use a robo-advisor anyway, using one connected to your bank account, credit card, and loan servicer creates a unified financial dashboard. Some people find this convenient. Others find it creepy. Know which camp you’re in before committing.
The practical benefit: You can set up automatic transfers from SoFi Checking to SoFi Invest without leaving the app. Automation removes friction. Friction is why most people don’t invest consistently.
Who SoFi Automated Investing Is For
This is for you if:
-
You’ve been meaning to invest for months (or years) but haven’t started. The $0 minimum and $0 fee remove every excuse. If you have $50 and a smartphone, you can start today.
-
You don’t want to learn about stocks, bonds, or asset allocation. You want someone (or something) to handle it. SoFi’s questionnaire takes 5 minutes, and then you’re done thinking about it.
-
You want a human to answer questions without paying $300/year. The free CFP access is genuinely valuable for beginners navigating their first investment decisions.
-
You’re already using SoFi for banking or loans. The ecosystem integration makes sense if you’re already in their world.
-
You want to match the market, not beat it. You understand that robo-advisors deliver market returns minus fees—and SoFi’s fees are zero.
Who Should Look Elsewhere
Don’t subscribe if:
-
You want to pick individual stocks. SoFi Automated Investing uses only ETFs. If you want to buy Apple or Tesla directly, you need SoFi’s Active Investing platform (also free) or a traditional brokerage.
-
You want to beat the market. Robo-advisors are designed to match market returns, not exceed them. If you believe you can outperform—or want a service that tries to—look at Motley Fool Stock Advisor for stock picks or Betterment for its premium strategies.
-
You want maximum customization. SoFi offers limited control over your portfolio. You can’t exclude specific sectors, tilt toward factors, or build a custom allocation. Wealthfront offers more customization for the same 0.25% fee.
-
You’re an experienced investor who wants control. If you already know what you’re doing, a robo-advisor adds nothing. Open a Fidelity or Schwab account and build your own portfolio.
-
You distrust financial ecosystems. If the idea of one company handling your banking, investing, lending, and credit makes you uncomfortable, SoFi’s model isn’t for you.
The Honest Trade-Offs
What SoFi Gets Right
- Zero management fee — The most compelling feature. You can’t beat free.
- No account minimum — Start with $5 or $5,000. Doesn’t matter.
- Free CFP access — Worth $200-$500/year at other platforms
- Clean mobile app — Intuitive interface that doesn’t overwhelm beginners
- Ecosystem integration — One app for banking, investing, and loans
- SIPC protection — Standard $500K coverage for investment accounts
What SoFi Gets Wrong
- Limited customization — You can’t adjust your portfolio beyond risk tolerance
- ETF-only portfolios — No individual stocks, bonds, or alternative assets
- Cross-selling pressure — Expect prompts to open other SoFi products
- No tax-loss harvesting transparency — Unclear minimum balance requirements
- Newer platform — Less track record than Betterment (2010) or Wealthfront (2011)
- Performance not disclosed — SoFi doesn’t publish historical returns for its automated portfolios
The Bottom Line: SoFi Automated Investing is optimized for simplicity and cost, not performance or control. That’s exactly right for beginners. It’s exactly wrong for experienced investors.
Pricing: The Full Picture
| What You Pay | Amount | Notes |
|---|---|---|
| Management Fee | $0 | Forever. Not a teaser rate. |
| Account Minimum | $0 | Start with any amount |
| Trading Costs | $0 | ETF trades included |
| CFP Access | $0 | Unlimited sessions |
| Account Transfer | $0 | ACAT transfers free |
What you might pay elsewhere in the SoFi ecosystem:
- SoFi Checking: Free (earns 3.80% APY with direct deposit)
- SoFi Credit Card: $0 annual fee
- SoFi Personal Loans: 8.74%-35.49% APR
- SoFi Plus: Free with credit card approval
The $0 management fee is real, but remember: SoFi’s underlying ETFs have their own expense ratios (typically 0.03%-0.20%). These are charged by the ETF providers, not SoFi, and are standard across all robo-advisors.
Get Started with SoFi — $0 Fees, $0 Minimum
Best Alternatives to SoFi Automated Investing
If SoFi isn’t quite right, here’s where to look:
Betterment — Best for Customization
Betterment charges 0.25% annually but offers more portfolio options, including socially responsible investing, income-focused portfolios, and flexible allocations. If you want more control than SoFi offers and don’t mind paying for it, Betterment is the industry standard.
Choose Betterment if: You want more portfolio options and don’t mind paying 0.25%/year.
See our Betterment review for the full analysis.
Wealthfront — Best for Tax Optimization
Wealthfront matches Betterment’s 0.25% fee but emphasizes tax optimization with features like direct indexing (for accounts over $100K) and sophisticated tax-loss harvesting. The $500 minimum is higher than SoFi’s $0.
Choose Wealthfront if: You have $100K+ and want maximum tax efficiency.
Fidelity Go — Best for Brand Trust
Fidelity’s robo-advisor charges $0 for accounts under $25K and 0.35% for larger accounts with human advisor access. If you trust Fidelity’s 78-year track record more than SoFi’s 14-year history, this is your option.
Choose Fidelity Go if: You want a legacy brokerage’s backing with robo convenience.
Final Verdict: Should You Use SoFi Automated Investing?
SoFi Automated Investing is the best robo-advisor for beginners who need to start investing without overthinking it. The $0 management fee eliminates the primary objection to robo-advisors, and the free CFP access provides human guidance when you need it.
But let’s be clear about what this is: a starting point, not a destination.
If you have money sitting in a savings account earning 0.5% while inflation runs at 2.7%, SoFi Automated Investing is a massive upgrade. You’ll get diversified market exposure, automatic rebalancing, and zero friction—all for free.
If you’re an experienced investor seeking market-beating returns, control over your portfolio, or sophisticated tax strategies, look elsewhere. SoFi is built for people who haven’t started, not people who’ve already arrived.
The real question isn’t whether SoFi is perfect. It’s whether you’ll actually use it. A free robo-advisor you fund consistently beats a sophisticated strategy you never implement.
Five years from now, you won’t remember which robo-advisor had the best features. You’ll remember whether you started.
Compare all your robo-advisor options in our guide to the best stock market research websites.
Start Investing with SoFi — $0 to Begin
Frequently Asked Questions
Is SoFi Automated Investing worth the money?
Yes, because there is no money to pay. SoFi Automated Investing charges $0 in management fees—compared to 0.25% at Betterment and Wealthfront. On a $50,000 portfolio, that saves you roughly $125/year. The service includes automated portfolio management, automatic rebalancing, and free access to certified financial planners. For beginners who need low-friction investing, it’s one of the best deals available.
What are the best alternatives to SoFi Automated Investing?
The best alternatives depend on what you need. Betterment ($0.25%/year) offers more portfolio customization and socially responsible options. Wealthfront ($0.25%/year) excels at tax optimization with direct indexing for larger accounts. Fidelity Go charges $0 under $25K and offers legacy brokerage backing. If you want stock picks instead of index investing, consider Motley Fool Stock Advisor.
SoFi Automated Investing vs. Betterment: Which is better?
SoFi wins on cost; Betterment wins on features. SoFi charges $0 in management fees while Betterment charges 0.25% annually. However, our Betterment review shows it offers more portfolio options (socially responsible, income-focused), a longer track record (since 2010), and more sophisticated tax-loss harvesting. Choose SoFi if cost is your priority. Choose Betterment if you want more customization and don’t mind paying for it.
How do I close my SoFi Automated Investing account?
You can close your SoFi Automated Investing account through the app or website at any time. There are no cancellation fees or penalties. Your investments will be liquidated and funds transferred to your linked bank account, which typically takes 3-5 business days. Since there are no management fees, there’s nothing to refund. You can also transfer your account to another brokerage via ACAT transfer without closing it.
Does SoFi Automated Investing beat the market?
No, and it’s not designed to. SoFi Automated Investing uses Modern Portfolio Theory to build diversified ETF portfolios that track the market, not beat it. Your returns will approximate a blend of stock and bond indices based on your risk tolerance. If you want to pursue market-beating returns, you’ll need active stock picking through services like Stock Advisor or self-directed investing through SoFi’s Active Investing platform.
Is SoFi Automated Investing safe?
Yes, with standard investment protections. SoFi Securities LLC is a member of FINRA and SIPC, providing up to $500,000 in protection (including $250,000 cash) if the brokerage fails. Your investments are held in your name, not SoFi’s. However, SIPC protection doesn’t cover investment losses—if the market drops, your portfolio drops. SoFi Bank products (checking, savings) are FDIC insured up to $250,000 per depositor.
What is the minimum investment for SoFi Automated Investing?
SoFi Automated Investing has a $0 minimum investment requirement. You can start with any amount—even $1—thanks to fractional share investing. This makes SoFi one of the most accessible robo-advisors available, compared to Wealthfront’s $500 minimum. There are no account maintenance fees, no inactivity fees, and no penalties for small balances. The $0 minimum combined with $0 management fees means beginners face zero financial barriers to starting an investment portfolio.
Does SoFi Automated Investing offer tax-loss harvesting?
Yes, SoFi Automated Investing includes tax-loss harvesting for eligible accounts. This feature automatically sells investments that have declined in value to offset taxable gains, potentially reducing your annual tax bill. However, SoFi doesn’t publicly disclose the minimum account balance required to activate tax-loss harvesting—competitors like Wealthfront offer it starting at $500 and Betterment has no minimum. Tax-loss harvesting works best in taxable brokerage accounts and provides no benefit in tax-advantaged accounts like IRAs and 401(k)s.
Can I transfer my existing investments to SoFi Automated Investing?
Yes, SoFi accepts ACAT (Automated Customer Account Transfer) transfers from other brokerages at no cost. The transfer typically takes 5-7 business days to complete. However, you should understand that SoFi will likely sell your existing holdings and reinvest them into its predetermined ETF portfolios—you cannot keep individual stocks or funds that don’t match SoFi’s model portfolios. If you hold appreciated securities, this could trigger capital gains taxes. Consider consulting with a SoFi CFP (free with your account) before initiating a transfer to understand the tax implications.