Getting started with SoFi Invest can feel overwhelming if you’ve never used an investing platform before. The app combines investing, banking, savings, loans, and other financial services into one place, which is convenient but can also make it difficult to know where to begin.
This beginner’s guide walks you through the essential features of SoFi Invest, from creating your account and funding it to buying your first investment, understanding taxes, and avoiding common investing mistakes. Whether you’re investing your first $5 or building a long-term portfolio, this tutorial covers everything you need to know.
What Is SoFi Invest?
SoFi Invest is a commission-free investing platform that allows users to purchase stocks, ETFs, cryptocurrencies, and participate in eligible IPOs through a single mobile app.
Some of the platform’s beginner-friendly features include:
- No account minimums
- Commission-free stock and ETF trading
- Fractional shares
- Easy bank account linking
- Integrated banking and investing
- Automated dividend reinvestment
- Access to retirement accounts such as Roth IRAs
Because you can purchase fractional shares, you don’t need hundreds of dollars to begin investing. Even a small amount can help you start building your portfolio.
How to Create Your SoFi Invest Account
Opening a SoFi Invest account only takes a few minutes.
During registration, you’ll be asked to provide:
- Your legal name
- State of residence
- Email address
- A secure password
- Home address
- Employment status
- Source of funds
- Annual income
- Citizenship status
- Phone number
- Social Security Number (for identity verification)
Like every regulated U.S. brokerage, SoFi follows Know Your Customer (KYC) regulations to verify your identity and help prevent fraud.
After entering your phone number, you’ll receive a verification code via text message. You’ll also authorize SoFi to verify your Social Security information before your application is approved.
Once everything is complete, you can log into the app for the first time using your email, password, and two-factor authentication code.
Secure Your SoFi Invest Account
One of the first things you should do after creating your account is review your security settings.
Navigate to:
Profile → Settings → Security
Here you’ll find options such as:
- Two-factor authentication (2FA)
- Login preferences
- Password management
- Login history
- Trusted device management
Although SoFi enables text-message verification by default, many investors prefer using an authenticator app such as Google Authenticator or Microsoft Authenticator for additional protection.
It’s also a good habit to periodically review your login history. If you notice an unfamiliar device or suspicious login attempt, change your password immediately and contact SoFi support.
How to Link a Bank Account
Before investing, you’ll need to fund your account.
Inside SoFi Invest, open the Invest tab and select Add Cash.
If you haven’t linked a bank account yet:
- Tap Link New Account
- Agree to the connection process
- Select your financial institution
- Sign in through the secure verification service
- Choose the checking or savings account you’d like to connect
Most major U.S. banks are supported.
One important tip is to avoid linking a credit card for funding investments. Investing with borrowed money can expose you to high interest costs that may outweigh potential investment returns.
How to Fund Your SoFi Invest Account
After linking your bank account, you’re ready to deposit money.
Choose:
- The source account
- Your investment account as the destination
- The amount you’d like to transfer
If you’re transferring from a SoFi checking or savings account, your funds may become available immediately.
External bank transfers typically take one to two business days to fully settle, although SoFi may provide instant buying power for eligible deposits while the transfer finishes processing.
After reviewing the transfer details, simply confirm the deposit.
Once completed, your buying power will appear inside your SoFi Invest dashboard.
What Can You Buy in SoFi Invest?
The platform offers several different investment choices.
These include:
- Individual stocks
- Exchange-traded funds (ETFs)
- Cryptocurrencies
- Eligible IPOs
- Options trading
For beginners, stocks and ETFs are generally the simplest starting point.
ETFs are especially popular because they provide instant diversification by holding dozens or even hundreds of companies in a single investment.
Although SoFi also supports cryptocurrency, IPO investing, and options trading, these products typically involve greater risk and may be better suited for experienced investors.
SoFi Invest Beginner ETF Ideas
Many new investors prefer building their portfolios with diversified ETFs rather than trying to select individual stocks.
Examples of popular ETF categories include:
Broad Market ETFs
Broad-market ETFs invest across thousands of companies and provide exposure to the overall U.S. stock market.
Growth ETFs
Growth-focused ETFs emphasize companies with strong earnings growth potential, often including large technology companies.
Dividend ETFs
Dividend ETFs invest in companies that regularly distribute cash payments to shareholders.
These dividends can either be taken as cash or automatically reinvested to purchase additional shares.
International ETFs
International funds add exposure to companies outside the United States, helping diversify across multiple global markets.
Thanks to fractional investing, SoFi Invest allows beginners to purchase small portions of these ETFs instead of buying full shares.
How to Buy Your First Investment
Buying an ETF or stock inside SoFi is straightforward.
Open the Invest section and search for the investment you want.
Select the security and tap Trade.
You’ll typically see several order types:
- Market order
- Limit order
- Stop market order
- Stop limit order
For beginners making long-term investments, a standard market order is usually the simplest option.
You can purchase either:
- A specific dollar amount
- A specific number of shares
Fractional shares allow you to invest even if you don’t have enough money for a full share.
After reviewing your order, confirm the purchase and your investment will be added to your portfolio.
How to Sell an Investment
Selling follows nearly the same process.
Select your investment, choose Trade, and tap Sell.
You can sell:
- A dollar amount
- A certain number of shares
- Your entire position
Before selling, remember that investment sales may create taxable events.
Profits from investments held less than one year are generally taxed differently than investments held for more than one year, making long-term investing more tax-efficient for many investors.
Turn On Dividend Reinvestment (DRIP)
One useful feature inside SoFi Invest is automatic dividend reinvestment, commonly called DRIP.
Instead of receiving dividends as idle cash, DRIP automatically purchases additional shares whenever dividends are paid.
This allows compounding to work continuously without requiring manual reinvestment.
To enable it:
- Open your investment account.
- Tap the settings gear.
- Select Dividend Reinvestment.
- Turn the feature on.
Once enabled, future eligible dividends will automatically be reinvested.
How to Withdraw Money
If you need to access your funds, withdrawals are simple.
Go to:
Invest → More → Withdraw
Choose:
- The amount
- Your destination account
- Review the transfer
- Confirm the withdrawal
Keep in mind that you can only withdraw available cash. If your money is still invested in stocks or ETFs, you’ll need to sell those investments first before transferring the proceeds to your bank.
Add a Beneficiary
Many investors overlook beneficiary designations, but they’re an important part of financial planning.
A beneficiary receives your account assets if something happens to you, helping your family avoid unnecessary legal complications.
While SoFi’s banking accounts allow beneficiaries to be added through the app, investment account beneficiaries may require additional paperwork depending on current platform functionality.
It’s worth taking a few minutes to ensure your accounts are properly configured.
Finding Your Tax Documents
Each year, SoFi provides tax documents for eligible investment activity.
To locate them:
Profile → Documents
Here you can download your:
- Consolidated 1099 forms
- Bonus-related tax documents
- Previous years’ statements
These forms summarize dividends, investment sales, capital gains, and other reportable activity, making tax preparation much easier.
If you simply purchased investments and never sold them or received reportable dividends, you may not receive a tax form for that year.
Common Beginner Investing Mistakes
Many investing mistakes have little to do with the platform itself and everything to do with investor behavior.
Some of the biggest mistakes include:
- Investing without a clear plan
- Checking your portfolio constantly
- Trying to time the market
- Chasing stocks after they’ve already surged
- Selling too quickly during market declines
Long-term investing rewards patience and consistency far more than frequent trading.
Final Thoughts
SoFi Invest is one of the most beginner-friendly investing platforms available today. Its commission-free trading, fractional shares, easy bank integration, and straightforward interface make it an excellent choice for first-time investors.
Rather than chasing risky investments or constantly buying and selling, focus on building a diversified portfolio, investing consistently, reinvesting dividends, and allowing time to work in your favor.
If you approach SoFi Invest with a long-term mindset and disciplined strategy, you’ll be giving yourself a strong foundation for building wealth over time.
Also Read: How to Use ETRADE – Complete Walkthrough for New Users
