With the rise of digital brokerages like SoFi Invest and Fidelity’s Fidelity Go, investors today have more options than ever when it comes to investing platforms. Both SoFi Invest and Fidelity offer commission-free trading, fractional shares, automated investing and extensive research. However, there are some key differences between these two platforms in terms of account minimums, trading tools, account types and more. In this article, we’ll compare the key features and performance of SoFi Invest and Fidelity to help you decide which platform may be the better fit for your investing needs. Both platforms offer easy-to-use interfaces, low fees and a wide selection of investment options, but have different strengths that may appeal to different types of investors.
SoFi Invest Offers Lower Minimums But Fewer Tools
SoFi Invest has no minimum deposit requirement to open an account, while most Fidelity accounts require a $2,500 minimum. This makes SoFi more accessible for beginning investors who want to start small. However, Fidelity offers significantly more trading tools, research and account types than SoFi. Fidelity has over 10 different account types including IRAs, joint accounts, trusts and more, while SoFi only offers individual taxable accounts and IRAs. Fidelity also offers desktop and advanced mobile apps packed with technical analysis tools, customizable charts, screeners and real-time data. The SoFi mobile experience is more simplified without advanced charting or screening capabilities.
Fidelity Offers More Investment Products
While both brokers offer stocks, ETFs, options and cryptocurrencies, Fidelity has a much more extensive investment menu including bonds, forex, mutual funds and IPOs that aren’t available on SoFi. Fidelity also offers over 3,000 mutual funds with no transaction fees compared to just 100 commission-free mutual funds at SoFi. For ETFs, Fidelity has commission-free access to all iShares and Fidelity ETFs while SoFi offers around 150 commission-free ETFs. Fidelity also allows trading forex, which isn’t possible on the SoFi platform.
SoFi Leads in Automated Investing
For hands-off investors, SoFi Automated Investing offers digital advisory services with automated portfolio management for just a 0.25% annual fee. Fidelity Go also provides an automated service, but charges a higher 0.35% annual fee. SoFi’s robo-advisor service includes automated rebalancing and tax-loss harvesting not offered by Fidelity Go. SoFi also assigns investors a dedicated financial advisor to provide guidance and answer questions at no added cost. Overall, SoFi delivers a more comprehensive robo-advisor experience making it a better choice for set-it-and-forget-it investing.
Fidelity Offers More Retirement and Cash Management Options
Fidelity is a one-stop-shop for retirement and banking products that SoFi can’t match. Fidelity offers full-service IRAs with access to advisors, trusts and credit card and check writing capabilities within retirement accounts. SoFi only offers basic IRA accounts with limited features. For banking, Fidelity offers FDIC-insured savings and checking accounts integrated with its brokerage services, while SoFi only offers external cash management accounts at partner banks. The ability to seamlessly manage cash and investing under one roof makes Fidelity a more convenient choice for many investors.
In summary, SoFi Invest shines for its easy-to-use interface, low account minimums and superior robo-advisor experience, while Fidelity is unmatched for trading tools, account options, investment selection and integrated banking. SoFi Invest may appeal to newer investors who prioritize simplicity and convenience, while advanced traders and those wanting retirement or cash management will get more value from Fidelity.