Investing through SoFi can be a straightforward way to buy stocks and exchange-traded funds (ETFs), including fractional shares. Whether you’re making your first investment or simply want to understand how the process works, SoFi makes it possible to place a trade in just a few steps.
This guide walks you through how to buy and sell stocks and ETFs on SoFi, explains the different order types you’ll encounter, and covers a few important considerations before you sell an investment.
How to Buy Stocks and ETFs on SoFi
To get started with Stocks and ETFs on SoFi, open the SoFi app and go to the investing section.
From the main screen, tap Invest at the bottom. Once you’re on the Invest screen, there are two ways to access the trading menu. You can tap the magnifying glass in the upper-right corner or select Explore and Trade in the middle of the screen.
Both options take you to the same trading interface.
Search for an Investment
Once the search screen opens, you’ll see a search bar at the top. Enter the name or ticker symbol of the stock or ETF you want to purchase.
As you type, SoFi will display matching investments. Select the one you’re interested in to open its detail page.
The investment page will show information such as:
- The current market price
- The day’s price change
- A performance chart
- Your existing position, if you already own shares
- The number of shares you own
- The total value of your position
- Your investment return
If you don’t already own the investment, you won’t see an existing position. Instead, you’ll simply see the available information about the stock or ETF.
When you’re ready to make a purchase, tap the blue Trade button.
Choosing How to Buy Stocks and ETFs on SoFi
After tapping Trade, you’ll see several options, including Buy, Sell, Recurring Buy, and Options.
For a basic purchase, select Buy. If you’re a beginner, there’s no need to worry about options or advanced trading strategies at this stage.
The buy screen displays your account, available buying power, current market price, and an estimated number of shares based on the amount you’re planning to invest.
Buying in Dollars vs. Shares
One of the most useful features when buying Stocks and ETFs on SoFi is the ability to choose between purchasing a specific dollar amount or a specific number of shares.
Tap the dropdown in the upper-right corner of the buy screen. Under the market order options, you can choose:
- Dollars: Enter the amount of money you want to invest, and SoFi purchases the corresponding amount of the investment.
- Shares: Enter the exact number of shares you want to purchase.
Buying in dollars is particularly useful when you don’t have enough money to purchase a whole share.
For example, if an ETF costs $34 per share but you only want to invest $10, you can purchase a fraction of a share rather than waiting until you have enough money for a full share.
Understanding Fractional Shares
Fractional shares allow you to invest a specific dollar amount without needing to purchase an entire share.
As you enter your investment amount, SoFi updates the estimated number of shares you’ll receive. This makes it easy to see approximately how much of the stock or ETF your money will purchase.
For example, a $5 investment in an ETF could result in a fractional position rather than a whole share.
This feature makes Stocks and ETFs on SoFi accessible even if you’re starting with a relatively small amount of money.
What Are Market, Limit, and Stop Orders?
When placing a trade, SoFi also gives you several conditional order options, including:
- Market order
- Limit order
- Stop market order
- Stop limit order
A market order is generally the simplest option for a beginner because you’re instructing SoFi to execute the trade at the available market price.
A limit order lets you specify the maximum price you’re willing to pay when buying. However, if the investment never reaches your specified price, the order may not execute.
Stop market and stop limit orders are more advanced tools that can be useful in particular trading strategies.
If you’re investing for the long term and are just learning how Stocks and ETFs on SoFi work, it’s important to understand these options before using them. For a basic purchase, a market order is the simplest approach.
Review and Confirm Your Purchase
After entering the amount you want to invest, tap Preview or the equivalent review option.
The confirmation screen lets you check the important details before placing the order, including:
- The amount you’re investing
- Your selected account
- Your available buying power
- The current market price
- The estimated number of shares
Review everything carefully before confirming.
When you’re satisfied with the order, use the confirmation slider at the bottom of the screen to submit it.
Once the order is processed, you’ll receive confirmation that your trade has been placed.
How to Sell Stocks and ETFs on SoFi
Knowing how to sell is just as important as knowing how to buy. The process for selling Stocks and ETFs on SoFi is very similar to the buying process.
Start by opening the investment you currently own. Your position will show information such as the number of shares you hold, your return for the day, and your total return since purchasing the investment.
Tap the blue Trade button and select Sell.
Choose How Much You Want to Sell
The sell screen looks very similar to the buy screen, but there’s one notable difference: SoFi may default to shares because you already own a specific number of shares.
You can choose to sell either:
- A specific number of shares
- A specific dollar amount
If you prefer to sell a particular dollar amount, change the dropdown from shares to dollars.
SoFi also provides a Sell All Shares option. This can be useful if you want to completely exit your position with one action.
If you only want to sell part of your investment, simply enter the amount or number of shares you want to sell instead.
Review Your Sale Before Confirming
Before submitting a sale, SoFi will show you the relevant information, including the current market price, the shares available to sell, the estimated value of your position, and the estimated number of shares involved in the transaction.
Tap Review to see the final confirmation screen.
As with a purchase, take a moment to make sure the information is correct before confirming the order.
If you decide to proceed, use the confirmation slider to submit the sale.
Important Things to Consider Before Selling
While it’s useful to know how to sell Stocks and ETFs on SoFi, pressing the sell button shouldn’t necessarily be a routine part of your investing strategy.
One reason is taxes.
In a taxable investment account, selling an investment for a profit can create a capital gain, which may be subject to taxes. The tax treatment depends on factors such as how long you held the investment and your individual tax situation.
In the United States, investments held for one year or less generally fall under short-term capital gains rules, while investments held for more than one year may qualify for long-term capital gains treatment. Your actual tax liability depends on your circumstances.
It’s also worth remembering that frequent buying and selling can work against a long-term investing strategy. Selling an investment means you’re no longer benefiting from potential future growth on the amount you sold.
That doesn’t mean you should never sell. There are many legitimate reasons to sell an investment, including changing financial goals, rebalancing a portfolio, or deciding that an investment no longer fits your strategy.
The key is to make the decision deliberately rather than treating investing like a constant cycle of buying and selling.
Final Tips for Buying and Selling Stocks and ETFs on SoFi
The mechanics of Stocks and ETFs on SoFi are relatively simple. Once you’ve gone through the process once, placing a basic buy or sell order can take only a few moments.
The more important part of investing is deciding what to buy, why you’re buying it, and when it makes sense to sell.
For long-term investors, a common approach is to focus on diversified, quality investments and give them time to grow rather than constantly reacting to short-term market movements.
Before placing any trade, make sure you understand what you’re buying, the risks involved, and the potential tax consequences of selling.
