Schwab Vs Sofi: Which Online Brokerage Is Better For You?

Introduction

Investing has become more accessible to the general public with the rise of online brokerages. Two of the most prominent names in the industry are Charles Schwab and SoFi Invest. Both offer a range of investment options and services, but which one is better for you? In this article, we will compare Schwab and SoFi to help you make an informed decision.

Background

Charles Schwab was founded in 1971 and has since become one of the largest brokerage firms in the world. It offers a range of investment options, including stocks, bonds, mutual funds, and ETFs. SoFi, on the other hand, was founded in 2011 as a student loan refinancing company. It has since expanded to offer investment options such as stocks, ETFs, and cryptocurrencies.

Investment Options

Schwab

Schwab offers a wide range of investment options, including access to over 4,000 no-transaction-fee mutual funds and commission-free online trading for stocks and ETFs. It also has a robo-advisor service, Schwab Intelligent Portfolios, which creates a diversified portfolio for you based on your risk tolerance.

SoFi

SoFi offers access to stocks, ETFs, and cryptocurrencies. It also has a robo-advisor service, SoFi Automated Investing, which creates and manages a diversified portfolio for you. SoFi also offers a unique investment option called SoFi Invest in IPOs, which allows you to invest in initial public offerings.

Fees

Schwab

Schwab charges $0 for online equity and ETF trades and $0.65 per options contract. It also offers over 4,000 no-transaction-fee mutual funds. However, it charges a $4.95 commission for mutual fund trades that are not on its no-transaction-fee list.

SoFi

SoFi charges $0 for online equity and ETF trades and $0 for options trades. It also has no account minimums and no management fees for its robo-advisor service. However, it does charge a 1.25% fee for cryptocurrency transactions.

Account Features

Schwab

Schwab offers a range of account types, including individual, joint, and retirement accounts. It also offers a high-yield checking account and a cash management account that comes with a debit card and ATM fee rebates.

SoFi

SoFi offers individual and joint brokerage accounts, as well as traditional and Roth IRAs. It also has a cash management account that comes with a debit card and ATM fee reimbursement.

Research and Education

Schwab

Schwab offers a range of research tools and resources, including market commentary, third-party research reports, and research on individual stocks and mutual funds. It also has a robust education center with articles, videos, and webinars on investing and personal finance.

SoFi

SoFi offers some research tools, such as analyst ratings and company profiles, but its resources are not as extensive as Schwab’s. It does, however, have an education center with articles and videos on investing and personal finance.

Customer Service

Schwab

Schwab has a reputation for excellent customer service, with 24/7 phone and chat support. It also has over 300 physical branch locations where you can receive in-person assistance.

SoFi

SoFi offers phone and email support during business hours, as well as a live chat feature. It also has a physical office in California where you can receive in-person assistance.

Mobile App

Schwab

Schwab’s mobile app has a user-friendly interface and offers access to all of its investment options and account features. It also has features such as mobile check deposit and the ability to customize alerts and notifications.

SoFi

SoFi’s mobile app also has a user-friendly interface and offers access to its investment options and account features. It also has features such as mobile check deposit and the ability to round up purchases and invest the spare change.

Conclusion

Both Charles Schwab and SoFi Invest offer a range of investment options and account features. Schwab has a larger selection of investment options, while SoFi has no management fees for its robo-advisor service and offers cryptocurrency trading. Schwab also has a reputation for excellent customer service and a robust education center, while SoFi has a unique investment option in IPOs and offers ATM fee reimbursement. Ultimately, the best choice for you will depend on your individual needs and preferences.