When it comes to investing, there are many options available to individuals. Two of the most popular platforms are SoFi and Fidelity. Both platforms offer a wide range of investment options, but they have distinct differences in terms of fees, investment options, and additional services. In this article, we will compare SoFi vs Fidelity to help you determine which platform may be the best fit for your investment goals.
Fees
One of the first things to consider when choosing an investment platform is the fees associated with the platform. SoFi and Fidelity both have relatively low fees, but they differ in terms of how they charge them.
SoFi charges a management fee of 0.25% on its investment accounts. Additionally, there are no fees for trading stocks, ETFs, and options on the SoFi Active Investing platform. This makes SoFi a great option for those who are looking to invest in individual stocks and ETFs without incurring high trading fees.
Fidelity, on the other hand, does not charge a management fee on its investment accounts. However, it does charge a commission on stock and ETF trades. The commission on stock trades is $4.95 per trade, which is relatively low compared to other platforms. Additionally, Fidelity also offers commission-free trading on a selection of ETFs.
Investment Options
Another important factor to consider when choosing an investment platform is the range of investment options available. Both SoFi and Fidelity offer a wide range of options, but they differ in terms of the specific types of investments they offer.
SoFi offers a variety of investment options, including stocks, ETFs, options, and cryptocurrencies. Additionally, SoFi Invest also offers automated investing options, such as robo-advisory services and a socially responsible investing option.
Fidelity, on the other hand, offers a wider range of investment options, including stocks, ETFs, options, mutual funds, and bonds. Fidelity also offers a variety of retirement account options, including traditional, Roth, and SEP IRA.
Additional Services
Both SoFi and Fidelity offer additional services beyond investment options, but they differ in terms of what those services are.
SoFi offers a wide range of additional services, including personal loans, mortgage refinancing, and even career coaching. Additionally, SoFi also offers a SoFi Roth IRA, which is a tax-advantaged retirement account that allows for tax-free withdrawals in retirement.
Fidelity, on the other hand, offers a variety of research and educational resources to help investors make informed decisions. Fidelity also offers financial planning services and has a network of financial advisors available to help clients with their investment decisions.
SoFi Invest
SoFi Invest is an automated investing platform that allows users to invest in stocks and exchange-traded funds (ETFs) through a mobile app or website. The platform offers a variety of features, including the ability to invest with as little as $1, automatic recurring investments, and the option to invest in fractional shares. Users can also access financial advice and educational resources through the platform, and have the option to join a community of like-minded investors for support and discussion.
Additionally, SoFi Invest offers a robo-advisory service, which uses an algorithm to create and manage a diversified investment portfolio based on the user’s risk tolerance and investment goals. The platform charges no commission fees on trades, but there may be fees associated with certain ETFs.
Fidelity Go
Fidelity has an automated investing feature called Fidelity Go, which is similar to SoFi Invest. Fidelity Go is a robo-advisory service that uses an algorithm to create and manage a diversified investment portfolio based on the user’s risk tolerance and investment goals. Users can invest with as little as $5, and can set up automatic recurring investments. The platform also offers a variety of educational resources and financial advice. Like SoFi Invest, Fidelity Go charges no commission fees on trades, but there may be fees associated with certain ETFs.
Final Thoughts
In summary, SoFi is a great option for those who are looking for low fees and a wide range of investment options, including stocks, ETFs, options, and cryptocurrencies. Additionally, SoFi’s additional services, such as personal loans, mortgage refinancing, and even career coaching, can be a great benefit to its members. On the other hand, Fidelity offers a wider range of investment options, including mutual funds and bonds, and has a variety of research and educational resources to help investors make informed decisions. It also offers financial planning services and has a network of financial advisors available to help clients with their investment decisions.
When comparing SoFi vs Fidelity, it’s important to consider your investment goals, risk tolerance, and other factors. If low fees and a wide range of investment options are important to you, SoFi may be the better choice. However, if you are looking for additional services such as financial planning and a network of financial advisors, Fidelity may be the best fit. Additionally, it’s worth noting that Fidelity has a wide range of retirement options, including traditional, Roth, and SEP IRA, which can be a great fit for those looking to plan for their retirement.
Ultimately, both SoFi and Fidelity are great platforms with different strengths, it’s worth considering both before making a decision. It’s also important to do your own research and understand the fees, investment options, and additional services offered by each platform before making a decision. Click here to try SoFi today!
