If you are new to SoFi Invest, the app can feel overwhelming at first. It combines investing with banking, savings, loans, and other financial products, so there are plenty of menus and features to navigate.
This guide explains how to use SoFi step by step, from opening and securing your account to funding it, buying investments, managing dividends, withdrawing money, finding tax documents, and eventually closing the account if you need to.
The goal is not just to show you where to tap. It is also to explain which features are useful for beginners and which ones are better left alone until you have more investing experience.
How to Use SoFi to Create an Investment Account
When you open a SoFi Invest account, you will need to provide basic personal and financial information. Start by entering your legal first and last name, state, email address, and a strong password.
Use the exact legal name shown on your government identification. You should also provide an email address and phone number that you regularly use because SoFi will send important account and security information to them.
You will then provide information such as:
- Your home address
- Employment status
- Source of funds
- Annual income
- Citizenship status
- Date of birth
- Phone number
- Social Security number
- Tax status
Answer these questions accurately. The information is used for identity verification and regulatory requirements.
SoFi will also ask whether certain regulatory situations apply to you, such as working for a securities exchange, FINRA, or a registered brokerage firm, or being a major shareholder or certain government official. If none apply, select the appropriate option indicating that none of the statements apply.
Once the application is complete, you can log into the SoFi app using the email and password you created.
How to Secure Your SoFi Account
Before depositing money, take a few minutes to review your security settings.
Open your profile from the top-left corner of the app, select Settings, and then choose Security. This section contains your password, two-factor authentication, login preferences, and login history.
Two-factor authentication is enabled during the account setup process. SoFi allows you to use text messages or an authenticator app. An authenticator app provides an additional layer of protection because its codes are generated through the app instead of being sent through your cellular network.
You can also review your login history to check when your account was accessed and which devices were used. If you notice activity you do not recognize, change your password and contact SoFi.
You should also review your trusted devices if you lose a phone or stop using a computer that was previously authorized.
How to Use SoFi to Link a Bank Account
To fund your investment account, open the SoFi app and tap Invest at the bottom of the screen.
Select Add Cash and then choose the option to add or link a new bank account. SoFi will guide you through the process of connecting your bank.
You will generally select your financial institution, sign into your bank, choose the account you want to connect, and authorize the connection.
When selecting an account to use for investing, stick with a checking or savings account. Do not use a credit card to fund investments. Investing with borrowed money at credit card interest rates can create significant financial risk.
Once your bank is connected, it will appear as an available funding source in SoFi Invest.
How to Fund Your SoFi Invest Account
After linking your bank account, choose the amount you want to transfer and make sure the money is going to your self-directed Invest account.
SoFi does not require a large minimum deposit to get started, and fractional shares allow you to invest smaller amounts of money.
Transfers from eligible SoFi accounts may be available immediately. Transfers from external banks can take longer to fully settle, although SoFi may provide instant buying power for part of an eligible deposit.
Before confirming the transfer, review the amount and the source and destination accounts. Then slide to confirm the transfer.
Once the money is available as buying power, you can use it to purchase investments.
How to Use SoFi to Understand Your Investment Options
SoFi Invest provides access to several types of investments, including stocks, ETFs, cryptocurrency, IPOs, and options.
Stocks represent ownership in individual companies. ETFs, or exchange-traded funds, hold collections of investments and can make diversification easier.
For beginners, broad-market ETFs can be a straightforward way to build a diversified portfolio without having to choose individual companies.
SoFi also supports fractional shares, which means you can invest a specific dollar amount instead of having to purchase a whole share.
Cryptocurrency, IPOs, and options are also available, but they involve different levels and types of risk. New investors should understand these products before using them rather than buying something simply because it appears in the app.
SoFi does not offer futures trading.
Stocks and ETFs are generally available without commissions, while other products can have different costs. Always review the current pricing and terms before placing a trade because fees and product availability can change.
How to Choose Beginner Investments on SoFi
One of the biggest mistakes new investors can make is assuming that having access to thousands of investments means they need to buy dozens of them.
You generally do not need a complicated portfolio to get started.
Broad-market ETFs can provide exposure to many companies through a single investment. Examples discussed in the walkthrough include funds such as VTI, SCHB, SCHG, VO, SCHD, and international funds such as SCHF.
A broad U.S. market ETF can provide exposure to companies across different sizes and industries. A large-cap or growth ETF can focus more heavily on established or rapidly growing companies. Dividend-focused ETFs emphasize companies that regularly distribute dividends, while international ETFs provide exposure to companies outside the United States.
These are examples of investment categories, not personalized recommendations. Before investing, consider your financial goals, risk tolerance, and investment timeline.
The important lesson for beginners is that diversification and consistency are generally more useful than constantly searching for the next winning stock.
How to Buy Stocks and ETFs on SoFi
Once your account has buying power, buying an investment is straightforward.
Open Invest and use the search icon or Explore and Trade to find the investment you want.
Enter the ticker symbol or name in the search bar and select the correct investment. You will see its current price, chart, and other information.
Tap Trade and then Buy.
SoFi allows you to choose between buying in dollars and buying a specific number of shares. Buying in dollars is particularly useful when using fractional shares because you can invest a specific amount even if you cannot afford a full share.
For example, instead of buying one entire share, you could enter $10 and purchase the corresponding fraction.
Review the order carefully before confirming it. When everything looks correct, slide to confirm the purchase.
How to Sell Stocks and ETFs on SoFi
Selling an investment follows a similar process.
Open the investment you own, tap Trade, and select Sell. You can generally choose to sell a specific number of shares or a specific dollar amount.
Before selling, remember that selling an investment can create a taxable event in a taxable brokerage account. If you sell an investment for a profit, you may owe capital gains taxes.
The length of time you held the investment can also affect how the gain is taxed. Short-term and long-term capital gains can receive different tax treatment.
For that reason, long-term investors generally should not buy and sell investments simply because of short-term market movements.
How to Use Dividend Reinvestment
Some stocks and ETFs pay dividends to investors. You can either receive those dividends as cash or automatically reinvest them.
Dividend reinvestment, often called DRIP, uses the dividends to purchase additional shares of the investment.
Those additional shares can then generate more dividends in the future. Over many years, this can create a compounding effect.
SoFi lets you enable dividend reinvestment from your investment account settings. Open your Invest account, tap the gear icon, select Dividend Reinvestment, and turn on the setting.
The walkthrough notes that SoFi’s DRIP setting is account-wide rather than something you can independently enable for each individual position. Changes can also take several business days to take effect.
How to Withdraw Money From SoFi
You can withdraw available cash from your SoFi Invest account when you need it.
From the Invest section, tap More and select Withdraw. Choose the amount you want to withdraw and select the destination account.
Remember that you cannot withdraw money that is still invested in stocks or ETFs. If you need to remove invested money, you generally need to sell the investment first and then withdraw the resulting cash.
Withdrawals to eligible SoFi accounts may be available faster than withdrawals to an external bank.
Selling investments before withdrawing can also have tax consequences, so consider those consequences before taking money out.
How to Add a Beneficiary on SoFi
Adding beneficiaries is an important part of managing financial accounts.
For SoFi banking accounts, beneficiaries can be added through the banking settings. Open Banking, tap the settings icon, and look for the Beneficiaries section.
You can generally designate primary and secondary beneficiaries. Primary beneficiaries are first in line to receive the account, while secondary beneficiaries act as backups.
The information requested can include the beneficiary’s legal name, relationship, date of birth, and Social Security number or ITIN.
The walkthrough notes that the process for investment accounts is different. At the time covered by the walkthrough, SoFi did not provide a direct in-app option for adding a beneficiary to a self-directed investment account. Instead, users needed to contact SoFi about a transfer-on-death form.
Because account features can change, check SoFi’s current instructions if you need to set up a beneficiary on an investment account.
A trusted contact is also different from a beneficiary. A trusted contact can be contacted about concerns involving your account or financial well-being, but they do not inherit the account or gain authority to move your money.
How to Understand SoFi Taxes
Investing can create tax consequences, so it is important to understand the basic tax documents associated with your account.
A key document is Form 1099. SoFi may issue tax forms reporting investment activity such as dividends, interest, and certain sales of investments.
If you sell an investment for a profit, the resulting capital gain may need to be reported. Dividends can also be taxable even if you automatically reinvest them through DRIP.
Your specific tax situation depends on your circumstances, so consider speaking with a qualified tax professional if you are unsure how your investment activity should be reported.
How to Find Your 1099 on SoFi
You can access your SoFi tax documents directly through the app.
From the main screen, tap your profile icon and select Documents. In the document center, look for the Tax Statements section.
You can filter the documents by account type and tax year. Select Invest if you want to see documents associated with your brokerage account.
If a 1099 is available, select it and download the PDF. You can save the document, send it to yourself, or provide it to your tax professional.
Not every investor will receive a 1099 every year. Whether you receive one depends on whether you had reportable activity during the tax year.
For example, simply depositing money and holding an investment without reportable activity may not result in a 1099 for that activity.
How to Use SoFi for Long-Term Investing
The easiest way to make investing complicated is to constantly trade.
A long-term approach can be much simpler. Instead of repeatedly buying and selling based on short-term market movements, you can build a diversified portfolio and give it time to grow.
Recurring investments can also help you invest consistently rather than trying to predict the perfect time to enter the market.
If you use dividend-paying investments, enabling dividend reinvestment can keep those payments working inside your portfolio.
The key is to create a strategy you can stick with rather than constantly changing direction because of market headlines.
How to Close a SoFi Invest Account
If you eventually decide that SoFi Invest is not right for you, closing the account requires a little preparation.
Open the Invest section and scroll down to Accounts. Select your self-directed account and tap the gear icon to open Manage Account.
Scroll down and select Close Account.
Do not close the account until you have dealt with the investments and cash inside it. SoFi generally requires the account to have no holdings or remaining cash before it can be closed.
If you are moving to another brokerage, consider an ACATS transfer instead of selling your investments. An ACATS transfer moves eligible investments from one brokerage to another without requiring you to sell them first.
If you simply want the money, you can sell your investments and withdraw the resulting cash. However, selling can create taxable gains.
You should also cancel any recurring investments before closing the account and make sure there are no pending trades, transfers, or other transactions.
Once everything has settled and the account has a zero balance, you can complete the closure process.
Even after closing the account, keep access to your tax documents. You may need your 1099 during the following tax season.
How to Use SoFi the Right Way
Learning how to use SoFi is not really about memorizing every button in the app. It is about knowing which features are useful and resisting the temptation to use every feature simply because it is available.
For a new investor, the basics are straightforward:
- Create and verify your account.
- Secure it with strong authentication.
- Link a checking or savings account.
- Fund your Invest account.
- Learn the difference between stocks and ETFs.
- Consider diversified investments that fit your goals.
- Use fractional shares if they suit your strategy.
- Avoid trading products you do not understand.
- Consider dividend reinvestment for long-term investing.
- Keep track of your tax documents.
- Review your account security periodically.
- Think carefully before selling or withdrawing investments.
SoFi puts a lot of financial tools into one app, which can be convenient for beginners. The trick is to use the convenience without letting the sheer number of available features push you into unnecessary trading.
Once you understand how to use SoFi, you can keep the process surprisingly simple: fund the account, choose investments that fit your strategy, invest consistently, and give your money time to work.
