Webull vs. SoFi Invest: Which Investing App is Right for You?
This page may contain links from our sponsors. Here’s how we make money.
If you’re looking to start trading or you’re looking for a new online broker, you’ll find plenty of options. There are many online brokerage platforms and companies, with Webull and SoFi Invest being two popular options.
Both investment apps aim to make trading as simple and cost-effective as possible. So, here we’ll explore a Webull vs. SoFi Invest head-to-head comparison to help you decide which is best for you.
Webull vs. SoFi Invest Overview
The main difference between Webull and SoFi Invest is that these two platforms were designed with different users in mind. Webull is more appropriate for active investors who have some experience and prefer to do research and analysis before making trades.
SoFi Invest is designed for new traders who want a simplified approach to active trading, or a completely hands-off approach.
The Webull Basics
Webull was established a little before SoFi Invest and has been operating since 2017. It started out as just a trading mobile app, but Webull developed a desktop trading platform back in 2020. The platform offers the ability to trade stocks, options, ADRs, ETFs, and cryptocurrency with different types of accounts, including IRAs.
You can buy and sell fractional shares for as little as $5. That means even high-priced stocks and ETFs are accessible to every investor. Additionally, fractional shares make it easier to ensure that all of your money is invested, rather than waiting until you have hundreds of dollars to purchase a share.
Compared to SoFi Invest, Webull is a little more sophisticated with various analysis tools, including technical indicators and advanced charting. In fact, these research and analysis tools are the most significant difference between Webull and competitors like SoFi Invest, which take a more streamlined approach.
Webull’s user interface is well-designed, but there’s a slight learning curve because of all the tools and reports available. New traders will appreciate that Webull offers paper trading, so you can test and practice strategies without putting any real money at risk.
New users will also appreciate the free stock signup bonus offered by Webull. You can also earn more bonuses by referring friends to the platform.
Learn more in our Webull review.
Webull is a free investing app that provides advanced reporting tools and allows you to make free trades of stocks, ETFs, and options. Right now Webull is offering up to 12 free stocks when you signup through our link (use the button below) and deposit any amount.
- Commission-free trades of stocks, ETFs, options, and cryptocurrency
- Buy fractional shares for any amount
- Extended trading hours
- Advanced reporting tools
- IRAs now available
- 24/7 customer service
The SoFi Invest Basics
As the name suggests, SoFi Invest is the brokerage arm of the financial institution and bank, SoFi. SoFi has a wide range of products, including loans, insurance, and credit cards. But in this article, we’re focusing exclusively on SoFi Invest, their online brokerage and stock trading platform.
SoFi Invest appeals to both active and passive investors. It stands out from other commission-free trading platforms by offering robo advisor services for those who prefer a hands-off approach. SoFi allows you to find your preferred trading approach without needing to switch or swap platforms, which isn’t the case with most trading platforms.
Webull offers stocks, ADRs, ETFs, options, and crypto (currently about 40 cryptocurrencies supported) with several account types, including traditional brokerage and IRAs. You’ll experience all the essential functionality using a mobile device or a desktop.
SoFi Invest offers access to more than 2,000 securities, including stocks, ETFs, and crypto, with no trading fees. There are over 30 crypto coins, but SoFi does impose a 1.25% markup. You can also access fractional shares or share bits, making it easier to access higher-value shares. Like Webull, SoFi Invest also offers IRAs.
You can choose your own investment picks using the Active Investing feature. For a more hands-off approach, allow the SoFi algorithms to help you build and manage a portfolio. SoFi Invest also provides an opportunity for IPO investment at IPO prices, but there are no guarantees with these products. You must submit an indication of interest and adhere to the participation rules.
How the Platforms Work
SoFi Invest has been designed with new investors in mind. The platform layout is easy to understand, and you can choose Active Investing or the Auto Invest feature. You can access the platform via the web or using the mobile trading app, and both offer the same ease of use and intuitive user experience.
However, the platform is quite basic, and the more experienced investor may find it limiting. For example, there are minimal advanced features that allow technical indicator analysis that’s essential for executing more sophisticated strategies.
Webull is more complex, but the account opening process does walk you through all the options quite clearly. You can choose the type of account you want to open, and the required information is very similar to other trading platforms. After you submit your application, you can expect account approval in approximately one business day.
The Webull desktop app, web-based, and mobile platforms all have a similar level of user experience. They have an intuitive layout with a simple-to-navigate interface. However, you can also customize your workplace station, adding fundamental analysis, charts, a stock screener, analyst ratings, and more.
Overall, Webull is likely to appeal to more experienced investors and traders, while SoFi may be more appealing to those who are just starting.
Webull and SoFi Invest have been designed with different types of investors in mind. It’s important to note the similarities and differences of each platform to determine which one would be a better fit for you.
- Retirement Accounts: Both Webull and SoFi Invest offer a variety of account types, including retirement accounts. This is highly beneficial for those who want to leverage tax advantages for long-term investing.
- Margin Trading: Both platforms offer margin accounts, but while SoFi invest has a flat rate, Webull’s is tiered with a lower rate for higher account balances.
- Fractional Shares: Both platforms offer fractional shares. However, the selection of stocks and ETFs that can be purchased with fractional shares on SoFi are more limited.
- 24/7 Support: If you run into any issues, you can access the customer support team around the clock with either platform.
- Automated Investing: SoFi Invest offers self-directed or automated investing. The auto-invest feature acts as a robo advisor using ETFs to invest and rebalance your portfolio according to your financial goals. Additionally, if your account balance is less than $10,000, there’s no management fee for this feature.
- Simplicity: There’s no doubt that SoFi’s interface is simpler and easier to use, especially for beginners. Webull’s interface is well-designed, but it’s not quite as simple due to all of the tools and data that are available.
- Research and Data: While SoFi Invest has some basic research tools, this is where Webull really stands apart. There’s an array of tools, including stock screeners, technical indicators, charting, and customized search watchlists. You can also use tools to create strategies and set alerts. The functionality of these features is a little different on the mobile app due to the screen size constraints.
- Real-Time Streaming Quotes: Webull offers customers three months of Level 2 Advance quotes for free. This provides Nasdaq TotalView with market depth information, asks on securities, and a greater depth of bids.
- Platform Access: Webull allows potential customers to access the platform and explore the tools and features without signing up for an account. This is an excellent feature if you’re not completely sure if the platform would be the right choice for you and you don’t want to go through the hassle of opening up an account you won’t use.
- Paper Trading: Webull provides paper trading, so you can try out new strategies without putting your investment fund at risk.
Pricing and Fees
There’s little to separate Webull and SoFi Invest in this area, as both platforms have no commission or trade fees. Both platforms have a markup on crypto and some incidental charges for certain things like paper statements and wire transfers (every brokerage will have these types of fees).
SoFi Invest does have a $10,000 account maximum balance threshold for the free auto investing feature. Accounts above $10,000 will be assessed a 0.25% management fee for funds that use the robo advisor. Webull does not offer a comparable service.
Both platforms offer margin trading, but while SoFi Invest has a flat fee, Webull has tiered rates, with a higher rate for those with smaller account balances. You’ll need millions in your account to access the best rate. So, for most margin traders, SoFi will have a lower rate.
Margin trading is very high-risk, so we do not recommend it. You should only consider trading on margin if you’re experienced and willing to accept the increased risk.
Pros and Cons
No financial platform is perfect, and there are positives and potential negatives associated with Webull and SoFi Invest. See which platform matches up best with your specific needs and wants.
- Access to Data and Research Tools: Webull’s most significant advantage over SoFi Invest involves access to tools and data. Experienced traders will appreciate the data and tools provided by Webull.
- Fractional Shares: Webull offers various fractional shares, so you can put every dollar of your investment fund to work. This is also an excellent feature for accessing higher-value stocks. For example, few investors have the thousands of dollars needed to buy just one share of Amazon, Google, or other high-profile brands. SoFi also offers fractional shares, but the options are more limited.
- Paper Trading: While Webull may not be as beginner-friendly as SoFi Invest, it does offer paper trading. This allows you to try out new strategies without risking any of your own money. This is useful to help new traders find their feet. More experienced traders can also try new techniques and strategies before implementing them with real funds.
- Not as Beginner-Friendly: Due to the tools and data available, Webull’s interface is busier than SoFi Invest’s interface. As a result, it’s not quite as clean or easy to use.
- Slow Updates: Webull does update real-time data. However, it’s not as frequent as some other platforms.
SoFi Invest Pros
- Access to Financial Investment Advisors: SoFi Invest users can access financial investment advisors free of charge. This could be an invaluable resource if you’re looking to develop a long-term investment strategy.
- Passive Investment Accounts: You can actively or passively invest. In fact, if your account balance is less than $10,000, there’s no management fee for this passive investment feature. Account balances over $10,000 do incur a fee, but it’s set at a reasonable percentage that is competitive in the industry.
- Beginner-Friendly: SoFi Invest assists new investors to find their footing in the world of trading. The platform has a simple, intuitive design with little to no learning curve.
SoFi Invest Cons
- Limited Stock Bits: While SoFi does offer fractional shares or stock bits, the options are more limited compared to Webull.
- Basic Interface: With SoFi Invest being designed for beginners, you may find that it lacks some of the features you need as you develop your investment experience.
Final Thoughts on Webull vs. SoFi Invest
Both Webull and SoFi Invest are superb platforms offering excellent options, but for different types of investors. While both platforms offer access to ETFs, margin trading, stocks, and fractional shares with minimal commissions and fees, the target market for each platform is very different.
Webull has been developed as a platform for investors interested in multiple asset classes. It offers excellent research tools and features like paper trading and real-time data. More experienced traders are likely to appreciate the inclusions. However, the platform may be a little overwhelming for new traders.
SoFi Invest is far more beginner-friendly. The platform offers the flexibility to choose self-directed investing or use the robo advisor. You can still access retirement accounts, margin trading, and other features that may not be found on some of the more basic trading platforms, but more experienced traders may find the feature set lacking. However, you do have the perk of being able to access professional financial investment advice without incurring any additional charges.
To decide which platform is best for you in the Webull vs. SoFi Invest comparison, you’ll need to consider what you’re looking for in your trading platform. Are you prepared for a steeper learning curve and jumping straight into the intricacies of trading, perhaps making use of paper trading? Webull offers this, and you can benefit from great analysis and research resources as you develop your trading confidence.
On the other hand, if you prefer a little bit of hand-holding and are looking for a platform that’s simple and easy to use but does not have particularly extensive research options, you’re likely to be happier with SoFi Invest.
Stocks & alternative investments, plus social community
Up to $300 in free stock
Advanced tools for active traders
Up to 15 free stocks
Invest in stocks, ETFs, options, and crypto
Up to 12 free stocks
Passively invest in real estate with as little as $10