Pros and Cons of Betterment vs. SoFI Invest

Comparing the pros and cons of Betterment and SoFi Invest reveals two popular options with distinct approaches to helping you build your financial future. Betterment has established itself as a robo-advisor pioneer, offering automated portfolio management with a focus on long-term wealth building through diversified ETF investments. Meanwhile, SoFi Invest has emerged as a versatile platform that combines automated investing with active trading options and additional banking services under one digital roof. Whether you prioritize Betterment’s sophisticated tax optimization tools or SoFi’s commission-free trading and member perks will depend on your personal investment goals and preferences.

An alternative to both might be for you to hire a financial advisor to manage your investments for you.

Betterment vs. SoFi Invest: A Side-by-Side Comparison

Betterment and SoFi Invest both offer automated investing, but they are built for slightly different investors. Betterment is more focused on goal-based robo-advice, automated portfolio management and tax features, while SoFi Invest combines automated investing with self-directed trading and access to other SoFi financial products.

The table below compares the two platforms by fees, minimums, account options, investing features and best use case.

Feature	Betterment	SoFi Invest
Best For	Hands-off investors who want a dedicated robo-advisor with goal-based planning and tax features.	Beginners or flexible investors who want automated investing, active trading and other financial tools in one app.
Automated Investing	Yes. Betterment offers managed portfolios based on goals, time horizon and risk tolerance.	Yes. SoFi Robo Investing offers professionally managed automated portfolios.
Active Trading	No. Betterment is primarily built around automated portfolio management.	Yes. SoFi Invest offers self-directed trading in addition to automated investing.
Management Fee	Betterment’s Digital pricing depends on total eligible investing balance and recurring deposit setup. Betterment Premium requires a $100,000 minimum and charges 0.65% annually on the first $1 million.	SoFi Robo Investing charges a 0.25% annual advisory fee.
Account Minimum	Betterment has no minimum balance for its traditional investing portfolios, while Premium requires $100,000.	SoFi says investors need $50 to start robo investing.
Investment Options	Primarily diversified ETF portfolios, with portfolio options based on goals and preferences.	Automated ETF portfolios, plus self-directed investing options through SoFi Invest.
Tax-Loss Harvesting	Available for eligible taxable accounts.	Not a core robo-investing feature.
Human Advisor Access	Available through Betterment Premium and certain advice/planning options.	Access to financial advisors may be available through SoFi.
Standout Feature	Automated tax-loss harvesting and a more specialized robo-advisor experience.	Flexibility to combine automated investing, active trading and broader SoFi financial products.

Betterment vs. SoFi Invest

When comparing Betterment vs. SoFi Invest, investors face a choice between two popular robo-advisor platforms with distinct approaches to automated investing. Betterment stands as one of the original robo-advisors, having pioneered the space since 2008 with a focus on sophisticated portfolio management and tax optimization. SoFi Invest emerged later as part of a broader financial ecosystem, offering automated investing alongside banking, lending, and other financial services.

Betterment is best known for automated investing, though it also offers self-directed investing accounts. SoFi offers both robo investing and self-directed investing, which may appeal to investors who want more flexibility.

You can invest in traditional, Roth or SEP IRAs through both Betterment and SoFi, though account features and investment options may vary by platform.

Betterment vs. SoFi Invest: Fees

Those interested in Betterment’s robo-advisor solution can choose from its Digital or Premium accounts.

Betterment’s Digital plan charges either $5 per month or 0.25% annually, depending on your household balance and recurring deposit setup. Betterment Premium charges 0.65% annually on eligible balances under $1 million and requires a $100,000 minimum.

SoFi Robo Investing currently charges a 0.25% annual advisory fee, and SoFi says investors need $50 to start robo investing. ETF fund fees may also apply.

Betterment vs. SoFi Invest: Services and Features

With a Betterment Digital account, you’ll benefit from automated investing and rebalancing, as well as access to customer support via phone and virtual chat. Those who upgrade to Betterment Premium will get all the perks of its basic account, plus unlimited calls with a certified financial planner for investment advice. Both account types also offer automated tax-loss harvesting, which is a convenient feature that can help you save time and reduce your tax burden.

When you sign up for Betterment, you’ll answer some questions about your investment style and risk tolerance. The platform’s automated technology will tailor your investments based on your preferences and goals. Betterment offers several ETF portfolios focused on different themes, including diversified, low-cost funds, high-growth companies, companies highly ranked for ESG and more.

SoFi automated investing offers similar services and features to Betterment. You can benefit from automated investing and rebalancing and complimentary access to SoFi’s financial advisors when you need it. Portfolios consist of low-cost ETFs, which contain a mix of stocks, bonds and other asset classes.

While SoFi offers lower fees and similar features to Betterment, it does not offer automated tax-loss harvesting. This feature can be a huge time-saver during tax season, but it’s still possible to manually reduce your tax burden by offsetting any investment gains with losses you’ve incurred that year.

Who Should Use Betterment and SoFi Invest?

Before choosing between Betterment and SoFi Invest, consider what you want the platform to do for you. If you mainly want automated portfolio management, tax features and goal-based planning, Betterment may be a stronger fit. If you want automated investing alongside self-directed trading, banking, lending or other financial products, SoFi Invest may offer more flexibility.

Betterment and SoFi Invest could both appeal to investors who want a relatively low-cost, hands-off way to invest. Betterment’s Digital plan charges either a monthly fee or an annual advisory fee, depending on your balance and recurring deposit setup, while SoFi Robo Investing charges an annual advisory fee. Both platforms may also pass along fund-level expense ratios for ETFs used in their portfolios.

Betterment may be a better fit for investors who want a more specialized robo-advisor experience. Its automated portfolios, rebalancing, goal-based planning tools and tax-loss harvesting may appeal to investors who want help managing a long-term portfolio with minimal day-to-day involvement. Betterment Premium may also appeal to investors who meet the account minimum and want access to CFP® professionals.

SoFi Invest may be a better fit for beginners or investors who want more flexibility in one app. In addition to robo investing, SoFi offers self-directed investing, which can appeal to users who want to buy individual investments on their own while still having the option of an automated portfolio. SoFi may also be useful for people who already use its broader financial ecosystem and want investing, banking and borrowing tools in one place.

Bottom Line

If you’re comparing Betterment vs. SoFi, you’ll probably notice that both platforms work similarly. You can access automated investment tools, with each and both give you access to low-cost ETFs. You’ll pay management fees with a Betterment account, though, so that’s important to be aware of. Overall, fees and features are comparable and both accounts may be a good choice for newer investors seeking convenience and simplicity.

Tips for Investing

Whenever you’re looking for new investment opportunities, it’s important to make sure all your decisions reflect your financial plan and overall goals. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Whenever you’re looking to invest on your own, it can be helpful to know how your money could grow with each investment. SmartAsset’s free investment calculator can help you estimate that exact thing.