Sofi recurring investing

Sofi Invest Automatic Investing Plan (Dollar Cost Averaging)

2022: Does Sofi Invest brokerage offer automatic investment plan (AIP) contributions? Sofi Invest dollar cost averaging program (DCA) setup and review. Weekly/monthly/quarterly recurring investing in ETFs, stocks, and mutual funds.

Sofi Invest Automatic Investing Program

If you are looking to SoFi Invest for long-term investment strategies, you will find several. One of the most trusted is dollar cost averaging, also known as DCA. Investors can take advantage of SoFi Invest’s DCA opportunity using a self-directed or automated approach. Keep reading for more information.

Dollar Cost Averaging at SoFi Invest

Investors both new and experienced will agree that it can be quite a challenge to time the markets correctly. Whether you consider the nature of market psychology and its effects on price movement, external news-driven events, or any other market moving factors, the truth remains that there is always a degree of unpredictability in the markets. The solution to the inherent timing problem that long-term investors face is dollar cost averaging.

Dollar Cost Averaging Description

To get a good understanding of how you can utilize dollar cost averaging in your own investments at SoFi Invest, it’s important to know how DCA works.

Dollar cost averaging is the act of averaging into a position. Instead of establishing a position all at once, some investors like to open their position in smaller increments over time. By doing that, they are able to get into the position at a variety of prices that average together. As prices rise and fall, new portions of the position are opened, and the end result is an entry prices that reflects a happy middle ground.

Dollar cost averaging is also useful in longer-term downtrends. As prices fall over time, buying additional shares for a position brings down the opening price making it easier to get back into the green when prices turn bullish once again.

Setting Up Your Account for Dollar Cost Averaging

To get started with dollar cost averaging at SoFi Invest, there are a few things that you should do.

The first thing that should be decided is whether the account should be self-directed or managed. SoFi Invest offers automated investing accounts that can be configured in a number of ways, but for investors who prefer to select their products manually the self-directed account allows for that. Whether choosing a self-directed or automated investment account, investors can use individual brokerage accounts or IRA accounts.

Once the account is established, funded, and ready, investors can choose a preferred method for dollar cost averaging. Options include dividend reinvestment, recurring deposits, and of course, automated investing.

SoFi recurring investing

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Automated vs Self-directed Investing

Whether trading in the self-directed brokerage account or utilizing the automated investment account, there are a couple of different ways that investors can dollar cost average into their positions.


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Automatic Recurring Payments

The simplest way to dollar cost average into any of your positions is to make use of the ‘Recurring Investment’ option. Recurring investments are completed using stock bits (fractional shares), so it is possible to make regular investments using a set dollar amount, no matter what the price of the stock or ETF happens to be.

It is useful to note that not all securities at SoFi allow automatic investments as the program is tied to fractional shares. There is no additional research required, though. If the stock or ETF has fractional shares available, the option to buy additional shares on a regular schedule will present itself.

SoFi Recurring Purchase

Dividend Reinvestment (DRIP)

Dividend reinvestment is one way to dollar cost average into position. While it is not quite the same as buying additional stocks to grow the position over time, SoFi’s fractional share concept allows any dividend payments coming in to be applied to the account automatically.

SoFi Dividend Reinvestment

When using dividend reinvestment, users enjoy a worry-free way to put their dividends to work. Dividends are reinvested into whichever position produced them, and all of SoFi’s brokerage account types are eligible for the program.

Automated Investing Dollar Cost Averaging

In the automated investment account, users have their funds spread over a range of securities that are adjusted and balanced over time. The ‘spread’ is based on several criteria, such as risk appetite, goals, etc.

SoFi Recurring Purchase Options

Funds in the robo investment account are balanced on a percentage basis and applied to the various categories within the portfolio using fractional shares. So, to set up dollar cost averaging in the automated investment account, simply decide how much money you would like to invest, how often those deposits should be made, and how the portfolio is balanced.

Funding Options

Whichever method of dollar cost averaging you choose; ACH transfers are the simplest way to get funds into your account on a regular basis. The process is automated and required no additional steps.

As far as how often those transfers take place, it depends on the decisions that you make on a per-security basis when setting up recurring buys or your auto-investment plan. In general, investments can be made on a daily, weekly, or monthly basis.

Alternative to SoFi for Dollar Cost Averaging

While dollar cost averaging is certainly possible at SoFi Invest, there are some limitations that some will notice. Most notably, the fact that there are only stocks and ETFs to invest in. Investors looking to build up long positions in other types of products, like mutual funds, may want to consider full-feature brokers, like TD Ameritrade.

TD Ameritrade offers the same automatic investment program that SoFi Invest does, but there are many more investment vehicles to choose from. It should be noted, however, that at TD Ameritrade, automatic DCA can only be activated with mutual funds. For other investment products, buying additional shares over time is a manual process.

There are also a wider variety of account types that an investor can use for a dollar cost averaging strategy. Whether you would like to use an individual account, a custodial account, a retirement account, or any of the other available account types, investors can build large positions over time, without having to worry too much about price fluctuation.

See more about TD Ameritrade’s dollar cost averaging program here.

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Open TD Ameritrade Account

Final Thoughts

While there are some limitations with regards to the available investment vehicles (mutual funds as an example) at SoFi, the broker offers many great features for long-term investors who are looking to average into larger positions over time. The automated investment account allows for continual growth in a balanced portfolio while the self-directed account allows investors to choose when to invest and which securities they would like to invest in.

About the Author
Chad Morris is a financial writer with more than 20 years experience as both an English teacher and an avid trader. When he isn’t writing expert content for, Chad can usually be found managing his portfolio or building a new home computer.