Many successful investors suggest that saving, investing, and keeping track of your cash flow is important to achieve financial goals. To keep these tasks organized, you need to find the right broker. An experienced online broker can help you achieve your investment goals by offering a platform.
Since there is a wide range of online brokers on the internet, choosing one platform wouldn’t be an easy task. If you are new to these tools, choosing an optimal option would be even harder.
This post includes SoFi vs Robinhood comparison, so you can make an informed decision and find a reliable platform. In this piece, you will find the unique features offered by each broker. Whether you want to invest in stock, save for retirement, and stock your money to achieve your goals, using these applications will come in handy. Let’s review both these platforms and check what they offer:
What is SoFi?
Four students by the names James Finnigan, Ian Brady, Dan Machlin, and Mike Cagney designed SoFi invest for college students. Using this platform, students can refinance student loans. The design of this application connected successful alumni with recent grad students. This is the first app to offer refinance loans to federal and private students in the U.S.
Since then, the manufacturers included various financial services such as stocks, personal loans, mortgages, and ETF. The platform also offers cryptocurrencies. Today, SoFi has more than one million users.
SoFi platform is a simple tool to buy stocks. Investors can use the SoFi platform for a wide range of trading options including options and stocks. On top of that, investors can create zero fees broker-assisted trades. Some investment accounts can automate their investments as well.
Advantages of SoFi
SoFi doesn’t bind the investors with minimum investment requirements and trading fees. Here are some major benefits of using SoFi investment:
- Investors can choose from a wide range of IRA accounts.
- They can use Certified Financial Planners at no cost.
- For options trading, investors can pick from multiple investment strategies including active investing.
- Investors can automate their investments options using a sophisticated computer algorithm. SoFi offers Robo-advisor as a tool to automate their transactions.
- SoFi offers 28 alt coins to traders. For each trade, they have to pay up to 1.25% of the trade value.
- SoFi provides IPO stocks to its users.
Investors can also avail money management services from SoFi. This includes cost-free checking and saving accounts. The platform offers free ATM services as well.
What is Robinhood?
Robinhood offers similar features as SoFi Invest. However, the interface of this application is relatively complicated. This indicates that it is designed for professional investors. Baiju Bhat and Vladimir Tenev founded this high performing trading platform in2013. This is a U.S. based, mobile-first platform and the one of the best things about it is that it is commission free.
Robinhood offers a wide range of features including commission-free crypto trades, margin investing, access to stocks, and fractional shares. Unlike SoFi Invest, experts can choose multiple order types with Robinhood. Furthermore, they can generate simple market orders, trailing orders, stop orders, and after-hours orders.
Beginners might not find Robinhoodas user-friendly as SoFi Invest for multiple reasons, including minimum investment tools and no automated trading. Besides these downsides, Robinhood is an outstanding platform for sophisticated investors. It still offers an intuitive user experience and many investors think that Robinhood is better than Betterment. Here is a quick comparison between Robinhood and Betterment.
Advantages of Robinhood
Robinhood offers plenty of advantages to its users. First off, there isn’t any minimum investment required to use the application. Furthermore, the platform allows ETFs, commission-free stocks trading, and cryptocurrency trading. Here are some benefits of Robinhood:
- New investors receive a free stock share from Robinhood.
- They can enhance savings with a cash management account. The account automatically sends extra funds to savings and yield a 0.30% annual percentage.
- They can trade in cryptocurrency free of cost.
- Beginners can easily get the hang of Robinhood’s intuitive and seamless app.
With Robinhood, investors can view chart options on full-screen. There are two types of graph options including candlestick charts and line graphs. Traders can also view technical indicators for the decision-making process.
SoFi and Robinhood are both suitable for beginner traders and investors. Both platforms charge minimal account fees and commissions on stocks and ETFs.
Whether you are a new investor or an experienced one, Robinhood would be the best option. The platform offers advanced market research and charts for technical analysis. Read more about Robinhood and learn why it is an ideal choice for investment.
Hopefully, this SoFi vs Robinhood comparison was helpful. In the end, the choice is all yours. If you want to start trading and searching for an optimal tool, you should evaluate both platforms discussed in this piece. SoFi is also a reliable platform, but its better suited to experienced investors. Make sure you consider your preferences and future financial goals when choosing between the two.