SoFi – short for Social Finance, is a personal finance company that offers a wide range of financial products and services. SoFi was founded in 2011 and since then, it has been on steady growth with a base of over 8.8M members with funded loans of more than $73B at present.
Robinhood is a financial technology company designed to democratize and make investing accessible to everyone. It offers brokerage accounts services through Robinhood Financial, a registered broker-dealer with the SEC, and offers crypto services through Robinhood Crypto.
Let us have a comprehensive analysis of both SoFi and Robinhood in terms of fees & commissions, investment opportunities, security, and much more in this article.
Robinhood Vs SoFi
Both Robinhood and SoFi are legit brokers witnessing robust growth in the fintech industry having their own strengths and weaknesses. Comprehensive research of their products & services and fees & commissions helps the traders choose the suitable broker for their trading needs.
Features
Here’s a comparison of the features of SoFi and Robinhood.
| Feature | SoFi | Robinhood |
| Founded | 2011 | 2013 |
| Members | Over 8.8M | Over 10M |
| Regulatory environment | OCC – Office of the Comptroller of the Currency FDIC – Federal Deposit Insurance and Corporation CFPB – Consumer Financial Protection Bureau FINRA – Financial Industry Regulatory Authority SIPC – Securities Investor Protection Corporation | SEC – Securities and Exchange Commission FINRA – Financial Industry Regulatory Authority SIPC – Securities Investor Protection Corporation |
| Products | Loans, Private student loans, Investing, Credit Cards, Banking, Insurance, Mutual Funds, Financial Insights and Business Solutions, Travel | Investing, Credit Cards, Gold, Crypto, Retirement and Options |
| Account types | Brokerage, savings, loans, insurance | Brokerage (stocks, options, crypto) |
| Fees/commissions | Commission free trading on stocks; some fees apply to loans | No commission on trades |
| Account minimum | No minimum requirements | No minimum requirements |
| Investment options | Stocks, ETFs, crypto, options | Stocks, ETFs, options, crypto |
| Deposit/Withdrawal limit | Up to $50,000 | No minimum |
| User interface | User-friendly, investment education | Simple and intuitive |
| Research tools | Robust educational resources, insights | Limited research tools |
| Customer support | In-app chat, email, phone support | Email support; limited phone support |
| Mobile app | Highly rated app with features | Highly rated app with simplicity |
| Fractional shares | Yes | Yes |
| Retirement accounts | Yes (IRAs) | Yes (IRAs) |
| Promotions | Referral bonuses, cash bonuses for investments | Referral bonuses |
| Support hours | Virtual assistant – Yes 24/7 | 24/7 chat support Phone support is only on weekdays |
| Support contact | Checking and Savings (855) 456-SOFI (7634) Personal Loans (855) 456-SOFI (7634) Student Loan Refinancing & Private Student Loans (855) 456-SOFI (7634) Home Loans (844) 763-4466 | 650-761-7789 |
Fees & commissions
Here’s a comparison of fees for SoFi and Robinhood:
| Feature | SoFi | Robinhood |
| Stock trades | $0 commission | $0 commission |
| ETF trades | $0 commission | $0 commission |
| Options trading | $0 commission | $5 exercise and assignment fee |
| Cryptocurrency trading | $0 commission (spread apply) | $0 commission (spread apply) |
| Management fees | $0 commission – for automated investing | N/A – no automated investing |
| Account maintenance Fees | $0 (no monthly fees) | $0 (no monthly fees) |
| Margin fees | N/A | Monthly fee for Robinhood Gold + interest on borrowed funds |
| Loan origination Fees | $0 – for personal and student loans | N/A |
| Cash management fees | $0 – for SoFi Money | $0 – for cash management account |
| Withdrawal fees | $0 | $0 |
| Inactivity fees | $25 if inactive for 6 months (can be waived-off) | No fees for inactivity |
Trading platforms
- In terms of the user interface, Robinhood offers an intuitive and user-friendly app and website whereas SoFi offers a clean and straightforward app and website.
- Robinhood provides basic market data and news articles. SoFi offers highly extensive educational resources yet fewer in-depth research tools.
- Robinhood offers limited charting features and SoFi offers basic charting tools.
- The mobile app of Robinhood is highly rated and designed for quick trading whereas SoFi’s is user-friendly with good functionality.
- SoFi facilitates crypto trading through its two partnered services namely, BitGo and Blockchain.com. But Robinhood offers direct crypto trading facility.
Key highlights
SoFi
- SoFi primarily targets young professionals and individuals, who are looking to improve their financial well-being.
- SoFi aims to be a one-stop shop for various types of financial needs, combining investing, lending, and education in a cohesive platform.
- SoFi doesn’t require a minimum balance for most of its services, yet some specific products like certain loan types need minimum balance requirements.
- SoFi doesn’t charge account fees though it offers competitive interest rates by combining its checking and savings accounts.
- SoFi offers exclusive member benefits to help the users earn at no cost.
- SoFi doesn’t cost extra for its users to use the robo-adviser to trade commission-free stocks and ETFs.
Robinhood
- Robinhood offers a wide range of special features that cater to both beginners and experienced investors, the most special being commission-free trading.
- Robinhood allows users to invest in a fraction of shares which obviously makes high-priced stocks accessible easily.
- Robinhood’s premium subscription service offers access to margin trading, larger instant deposits, and advanced market data.
- Robinhood also allows users to earn interest on uninvested cash in its cash management services.
- Users need not wait for the standard clearing time as Robinhood provides access up to a certain amount of their funds immediately after depositing.
- The addition of Robinhood gold enhances the platform for experienced traders who seek advanced trading options.
- In order to provide an additional layer of protection, Robinhood holds the majority of the users’ coins in cold storage to entirely disconnect them from the internet. NewYork State Department of Financial Services and FinCen oversee Robinhood in crypto.
Conclusion
Investors have different financial needs and it is essential to choose the type of trading that supports their requirements. While SoFi is largely preferred for its comprehensive financial services, and cash management features, Robinhood is preferred for its simplicity, commission-free trading, and fractional shares.
Both SoFi and Robinhood are monitored by top-tier financial regulators, making them highly trustworthy among investors. However, choosing between SoFi and Robinhood depends on your specific investment needs and preferences. We recommend investors assess the priorities that should guide their decisions to avoid potential loss.
Pro Tip
No matter which broker you are trading with, it is necessary to be mindful of potential spreads in cryptocurrency transactions and any specific fees related to margin trading. Discover the comprehensive financial platforms with our trusted forex brokers and keep your trading experience streamlined. Dive into our investment platform models such as stocks, crypto, and CFDs too.
