TD Ameritrade 300

Sofi Invest vs Fidelity


Fidelity Investments versus Sofi Invest - which is better in 2020? Compare margin accounts, online trading fees, stock broker extended hours, and differences.



Sofi Invest and Fidelity Overview


Fidelity is your traditional brokerage firm that has adapted to changes in technology. SoFi is the new, modern firm with fresh ideas. Which broker offers the better trading model? Here’s an answer:


Cost


Broker Fees Stock/ETF
Commission
Mutual Fund
Commission
Options
Commission
Maintenance
Fee
Annual IRA
Fee
Fidelity $0 $49.95 $0.65 per contract $0 $0
Sofi Invest $0 na na $0 $0


Services


Broker Review Cost Investment Products Trading Tools Customer Service Research Overall Rating
Fidelity
Sofi Invest


Promotions


Fidelity: Get 500 free trades with $100,000+ deposit.

Sofi Invest: Open an Active Investing account with $5,000 and get $100 in free stock.



Category 1: Tradable Assets


SoFi offers a small selection of investments. Currently, there are ETFs, stocks, closed-end funds, and 3 digital currencies (Bitcoin, Ethereum, and Litecoin). There are no other assets available for trading.

At Fidelity, traders get a larger selection. The broker-dealer offers bonds, stocks, mutual funds, ETFs, closed-end funds, options, and precious metals. There are no currencies of any kind.

Fidelity has the overall larger selection; so it gets the victory in the first category.


Sofi


Category 2: Investment Research


A great deal of learning materials and research tools will be found on Fidelity’s user-friendly website. During our investigation, we found 14 pdf reports on General Electric from multiple analysts. Besides this great resource, stock profiles present ESG numbers, an equity summary score, news articles, earnings histories, technical events courtesy of Recognia, fundamental evaluation from S&P Global Market Intelligence, and much more.

SoFi’s security profiles show only limited data points. News articles are linked, but there is only a handful of trade numbers, such as P/E ratio. The vast majority of information we mentioned for Fidelity is completely absent at SoFi.

Fidelity is the easy pick in this category.


Fidelity


Category 3: Trading Tools


The software platforms clients use to actually place trades is an important topic that we need to address. SoFi has a user-friendly website, and that’s certainly a good thing. But there’s just not much on it. There’s no trade bar and no browser platform. Charts come in line format only, and there are no tools. A graph cannot be displayed the width of the monitor.

SoFi’s trade ticket really isn’t a trade ticket. It’s an order request form that customers submit to the broker. SoFi submits these as orders to the exchanges at 3:30 pm each market day.

Fidelity has a much more thorough website, but it’s easy to use nevertheless. There isn’t a trade bar; although there is a pop-up trade ticket that’s not too bothersome. Like SoFi, Fidelity fails to offer a browser platform. But it does have a desktop program called Active Trader Pro. It’s free to use and has many professional-level features like Level II quotes and direct-access routing.

We choose Fidelity here.


Category 4: Managed Accounts


SoFi clients who don’t find the success they’re looking for on their own can open a separate account called “Automated Investing.” This is the broker’s digital investment service. Incredibly, there is no charge for the service; and even more shocking is the company’s free human financial advice for customers who sign up for the free Automated Investing account.

Fidelity, not to be outdone, has its own robo-advisory service. Named Go, there is a 0.35% annual fee. While SoFi requires $1 to start its service, Fidelity requires nothing.

Like SoFi, Fidelity has human advisors. But unlike SoFi, they actually manage accounts. At SoFi, they just answer questions and give advice. Fees and minimums for Fidelity’s old-school services are higher than its digital service.

SoFi is the victor here.


Category 5: Other Services


Dividend Reinvestment Program: SoFi doesn’t offer a DRIP plan for self-directed traders. Fidelity does, and this is a major advantage over its rival.

IRA’s: Neither SoFi nor Fidelity charges any IRA fees. Fidelity clients can open a SIMPLE IRA. SoFi doesn’t offer one.

Automatic mutual fund investing: Fidelity customers can sign up for recurring deposits into mutual funds.

Fidelity is the outperformer in this category.


Recommendations


Beginners: Fidelity is definitely the better choice here.

Mutual Fund Traders: Fidelity is the only choice here.

Retirement Savers: We are impressed with Automated Investing at SoFi. However, the broker doesn’t offer a solo 401(k) or target-date funds, both of which are available at Fidelity. On the whole, we’ll call it a draw.

ETF and Stock Trading: Fidelity’s desktop program combined with zero-commission trading leaves SoFi in the dust.


Promotions


Fidelity Investments: Get 500 free trades with $100,000+ deposit.

Sofi Invest: Open an Active Investing account with $5,000 and get $100 in free stock.



Sofi Invest vs Fidelity Results


SoFi may be the modern broker; but that doesn’t necessarily mean better, as the results of this survey clearly show.

Value oriented investors can find a better deal at the other $0 commission broker, Firstrade.