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SoFi Invest® vs. Betterment [2025]: SoFi®'s Minimal Fees Give It the Upper Hand

As a cost-conscious investor, SoFi Invest® won my choice, although Betterment's tax-loss harvesting feature was quite appealing.

By Kate Daugherty

Edited by Yahia Barakah, CEPF

Updated Aug. 28, 2025

4.3

Get up to $1,000 in stock when you fund a new account with at least $50.¹ Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 45 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. The stocks shown are meant to be a representative sample and are not meant to convey a recommendation to buy, hold, or sell.
Trade stocks and ETFs with $0 commissions² Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees.
Invest in IPOs before they trade on the public market³ Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(<a href="https://www.finra.org" style="background-color: rgb(255, 255, 255);">www.finra.org</a>) /SIPC (<a href="https://www.sipc.org" style="background-color: rgb(255, 255, 255);">www.sipc.org</a>).
Fractional shares let you buy a piece of your favorite companies⁴ There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batch order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event.
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5.0

Passive investing with professionally built portfolios
Start with as little as $10
Automatic rebalancing and reinvesting
Tax-loss harvesting available
Low fees

Our view

The choice between SoFi Invest® and Betterment isn't always clear-cut, as both offer unique benefits. Personally, I lean towards SoFi Invest® because it offers active investing with a low $5 minimum requirement to invest and no trading fees⁵ INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUEBrokerage and Active investing products offered through SoFi Securities LLC, member FINRA(<a href="https://www.finra.org/">www.finra.org</a>)/SIPC(<a href="https://www.sipc.org/">www.sipc.org</a>). ⁶ FinanceBuzz is not an investment advisor. This content is for informational purposes only, you should not construe any such information as legal, tax, investment, financial, or other advice. . This makes it incredibly accessible for everyone, even if you're new to investing and want to start with small amounts at first.

However, I can see the appeal of Betterment for those already familiar with investing. While it does charge $4 a month or 0.25% annually based on your account, these fees are lower than what you'd typically pay a traditional advisor. Betterment's pre-selected exchange-traded fund (ETF) portfolios and automatic rebalancing mean it's also a solid automated investing option for those who don't want to actively manage their investments.

SoFi Invest® doesn't offer tax-loss harvesting, which also gives Betterment an edge, as this tax strategy can yield a meaningful difference in the performance of larger account balances. On top of that, I like that Betterment offers socially responsible investments and crypto portfolios. However, the advisory fee it charges is hard to justify at a time when several of the best robo-advisors don't charge such a fee.

How we evaluate products

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SoFi Invest® vs. Betterment

	SoFi Invest®	Betterment
Investment type	Active investing	Automated investing
Minimum investment	$5 minimum for active investing $5 minimum for fractional shares⁴ <p>There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batch order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event.</p>	$0 minimum balance $10 minimum opening deposit
Investing fees	$0 trading fees 0.25% annual advisory fee for robo investing⁷ <p>0.25% fee is based on your account value. The wrap program fee may cost more or less than purchasing brokerage, custodial, and recordkeeping services separately.</p>	$4 per month on balances under $20,000 0.25% annual advisory fee with a monthly deposit of $250+ or on balances between $20,000 and $1,000,000
Available assets	Individual stocks ETFs Mutual funds IPOs Options⁸ <p>Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA (<a href="https://www.finra.org">www.finra.org</a>)/SIPC (<a href="https://www.sipc.org">www.sipc.org</a>).</p> Alternative funds	ETFs Cryptocurrency
Account types	Individual taxable accounts Joint taxable accounts Traditional IRA Roth IRA SEP IRA	Individual taxable accounts Joint taxable accounts Trusts Traditional IRA Roth IRA SEP IRA
Main features	Active investing Access to a financial planner	Automated investing with socially responsible options Automatic rebalancing Lower fees than a traditional advisor
Best for...	Investors who prioritize minimal fees while accessing active investing	Investors who prioritize tax-loss harvesting and don't mind paying a relatively small fee
	Visit SoFi Invest® \| Learn more in our SoFi Invest® review	Learn more in our Betterment review

When to choose SoFi Invest®

Consider using SoFi Invest® if you want to start small and not worry about fees. You can get access to a financial planner regardless of how much money is in your account, opening up expert advice to even the most novice investors. It's also a great choice if you have the desire to experiment with alternative investments like IPOs and options trading.

Choose SoFi Invest® if:

You want to try your hand at active investing

Once I gained more confidence, I opened an active investing account to pick my own stocks, ETFs, mutual funds, and other asset classes. SoFi®'s trading platform made placing my orders quite easy, although it lacked advanced analysis tools that advanced investors may need. It's worth mentioning that I didn't have to pay any commissions or trading fees for these purchases. ² Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees.

SoFi Invest® supports fractional shares starting from a $5 minimum, which was essential for me — I could buy slices of stocks like Amazon (NASDAQ: AMZN) that would normally be out of my budget.⁴ There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batch order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event.

While my SoFi Invest® account provides access to financial planners, I couldn't get specific trade recommendations, which was a bit limiting as an active trader. But overall, SoFi®'s low-cost, user-friendly platform was ideal for starting my investing journey.

You want a linked checking and savings account

In addition to investing accounts, SoFi® also offers a banking account that comes as bundled checking and savings accounts. This truly simplified moving money in and out of my investment accounts and allowed me to set up small recurring deposits for each day of the week.

The SoFi Checking and Savings account offers up to 3.80% annual percentage yield (APY) with direct deposits, which is a great rate. Although Betterment offers an even higher APY rate, I chose to stay with SoFi® for my banking needs to have my cash and investments under one roof and simplify monitoring my financial picture.

SoFi is a Member, FDIC. ⁹ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>.

Visit SoFi Invest® or learn more in our SoFi Invest® review.

4.3

Get up to $1,000 in stock when you open & fund a new Active Invest account.⁵¹

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When to choose Betterment

Betterment is a great robo-advisor choice, especially for investors with bigger balances who are willing to pay a bit more in fees to access features like tax-loss harvesting and crypto investing. It may be the right choice for you if you have a bit more experience as an investor and don't want to pay a traditional advisor. The opportunity to invest in designated socially responsible portfolios is another plus.

Choose Betterment if:

You want to automate your portfolio management

When I started using the platform, the account opening process was seamless — I simply answered some questions about my financial goals, risk tolerance, and investment timeline.

Based on my responses, Betterment recommended one of its pre-built ETF portfolios that include stocks and bonds. As a set-it-and-forget-it investor, I appreciated this hands-off approach to automating my portfolio management.

What caught my eye were Betterment's socially responsible investing options. For example, its climate-focused portfolio exclusively holds companies with low carbon emissions, which enables me to invest while supporting a cause at the same time.

You want to access advanced features like crypto and tax-loss harvesting

The ability to invest in cryptocurrencies through Betterment's crypto portfolios was another unique offering that many robo-advisors I reviewed didn't have.

Betterment's portfolios come with built-in tax loss harvesting, which aims to optimize tax liability each year by offsetting capital gains with losses. While my portfolio balance and account activity weren't significant enough to yield meaningful results, I could see how important this would be for investors with large portfolios.

That said, Betterment's fee structure gave me some pause. The $4 monthly fee on balances under $20,000 or 0.25% annual fee on balances of $20,000 or more can really add up over time, eating into returns. So, while Betterment shines for socially conscious investors wanting ethical investments and tax optimization strategies, the fees are a drawback compared to SoFi®'s minimal fee structure.

You want to earn an APY on uninvested funds

A standout feature that made Betterment appealing was the Cash Reserve account. This high-yield cash management solution allowed me to keep my money liquid and easily accessible while still earning a highly competitive APY.

I used the Cash Reserve as a place to park a portion of my savings and earn an APY of up to 4.25% (as of Dec. 2, 2024). What I really appreciated was the simple integration between my Cash Reserve and investment accounts. With just a few clicks, I could transfer money in or out to increase my investments or withdraw profits. This made managing my overall portfolio a breeze without having to link multiple external bank accounts.

Learn more in our Betterment review.

What both investment platforms excel at

Both SoFi® and Betterment share two advantages that make them great investment platforms for hands-off investors:

Low minimum balances: The low account minimums were crucial for allowing me to start investing with just a small amount of money. SoFi®'s $5 minimum for active trading meant I could get started without a large upfront investment. And Betterment's $10 opening deposit was still quite accessible. Not having to maintain high monthly balances took the pressure off as I was building up my portfolio.
High-yield deposit accounts: Both SoFi® and Betterment offer banking solutions that come with highly competitive APY rates. SoFi Checking and Savings helps you earn up to 3.80% APY with direct deposits, while Betterment Cash Reserve helps you earn up to 4.25% (as of Dec. 2, 2024) APY.

Important differences between SoFi Invest® and Betterment

While both SoFi® and Betterment can help grow your money, each one has its own unique strengths. Before choosing one, these were the major differences that stuck out to me:

1. Monthly fees

SoFi Invest® doesn't charge trading fees. The only costs were certain underlying expenses for the specific investments in my portfolio, which are pretty standard across the industry, as well as a 0.25% annual advisory fee for robo investing⁷ 0.25% fee is based on your account value. The wrap program fee may cost more or less than purchasing brokerage, custodial, and recordkeeping services separately. .

On the other hand, Betterment's fee structure gave me some pause. The platform charges a $4 monthly fee if your balance is under $20,000. Once your balance gets to $20,000 or more, the fee switches to an annual 0.25% advisory fee. Paying $4 a month comes to $48 a year while paying 0.25% annually on a balance of $20,000 equates to $50 a year. SoFi Invest® would be the cost-effective option if your balance was under $20,000.

Winner: SoFi Invest® wins this category since it doesn't charge trading fees, so you can save a little bit more compared to Betterment.

2. Access to financial advisors

SoFi® makes it relatively easy to talk to a financial planner and ask questions for a 0.25% annual advisory fee.

Betterment offers access to Certified Financial Planners (CFPs) but requires you to have at least $100,000 in assets and be on its Betterment Premium plan. This plan has an annual advisory fee of 0.65%, considerably higher than its standard plan's fee of 0.25%.

Winner: SoFi®, since it doesn't require a minimum balance or charge extra to talk to a financial planner and discuss your portfolio.

3. Alternative investing options

Both SoFi® and Betterment allow you to venture beyond just traditional stocks and bonds.

SoFi® lets eligible customers invest in companies that are about to go public before they become generally accessible for traders on the stock market through its IPO access. It also offers access to options trading, which can be lucrative for advanced investors. On top of that, it offers alternative funds that help you invest in real estate, commodities, and more.³ Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(<a href="https://www.finra.org" style="background-color: rgb(255, 255, 255);">www.finra.org</a>) /SIPC (<a href="https://www.sipc.org" style="background-color: rgb(255, 255, 255);">www.sipc.org</a>).

On the other hand, Betterment offers access to crypto and socially responsible portfolios. While it doesn't have the same degree of alternative investing options as SoFi®, it stands out with these two portfolio types since SoFi® doesn't offer them.

Winner: SoFi® since it offers a wider variety of alternative investing options.

4. Tax loss harvesting

Selling off losing assets can help you offset some of your gains, which may help optimize your taxes. This is known as tax loss harvesting, a feature that SoFi® doesn't offer.

On the other hand, Betterment offers tax-loss harvesting through an automated algorithm that checks your account regularly for potential tax-loss harvesting opportunities. There's no extra fee for this service.

Winner: Betterment, since it includes tax loss harvesting at no added cost, which may help you offset some of your taxes on profits you make.

FAQs

What is the difference between SoFi® and Betterment?

One of the main differences between SoFi Invest® and Betterment is that SoFi® doesn't charge trading fees, while Betterment does. Additionally, SoFi® offers active investing, while Betterment doesn't. But Betterment offers tax-loss harvesting and socially responsible portfolios, two things that SoFi® lacks.

Is Betterment really worth it?

Betterment could be worth its monthly or annual advisory fees if you are looking for lower fees than traditional financial advisors. Betterment charges a flat $4 monthly fee for accounts under $20,000. If your balance is $20,000 or more, you'll pay an annual advisory fee of 0.25%.

Is SoFi Invest® good for beginners?

SoFi Invest® is a good option for beginners. It only requires $5 minimum for active trading and doesn't charge trading fees.

Bottom line

At the end of the day, both SoFi Invest® and Betterment provide valuable platforms for investing your money — it simply comes down to your investment goals and personal preferences.

For people looking to start investing without worrying about fees, SoFi®'s lack of trading fees make it an extremely accessible and cost-effective choice.

However, if you plan on having a large portfolio, Betterment's tax optimization via its tax-loss harvesting feature could outweigh the extra fees involved. Check out our list of the best robo-advisors for even more options.

Reach Your Savings Goals Faster

5.0

2025 award winner Best Checking and Savings Combo

SoFi Checking and Savings Benefits

Limited-Time Offer: Earn up to a $300 bonus and up to 4.50% APY on Savings (3.80% APY¹⁰ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Eligible Direct Deposit. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at <a href="https://www.sofi.com/banking/">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.SoFi members with Eligible Direct Deposit can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.80% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet" >http://www.sofi.com/legal/banking-rate-sheet</a>. with +0.70% APY Boost) for 6 Months on new accounts with eligible direct deposit. Terms Apply.¹¹ Earn up to 4.50% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.80% APY as of 8/5/25) for up to 6 months. Open a new SoFi Checking & Savings account with Eligible Direct Deposit by 1/31/26. Rates variable, subject to change. Terms apply at <a href="https://www.sofi.com/banking/#2">sofi.com/banking#2</a>. SoFi Bank, N.A. Member FDIC.
No account, overdraft, or monthly fees¹² We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a>
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Access additional FDIC insurance up to $3 million⁹ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>.

5.0

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