SoFi vs. Acorns: Which Is Better?

SoFi and Acorns are both robo-advisors, meaning they digitally manage your investments. The two services cater to hands-off traders who prefer a passive investment strategy, offering investors the opportunity to build their investment knowledge and start trading with little money required. However, choosing the trading platform that best suits your goals, timeline and level of engagement takes careful consideration. When comparing SoFi vs. Acorns, this is what to consider.

If you are looking for professional help with your investments, consider speaking with a financial advisor who can guide your investment strategy.

Overview of SoFi vs. Acorns

Overall, SoFi Invest is a bit more comprehensive than Acorns, as it allows investors to actively manage their portfolios. Investors can choose from a larger number of investment types, including stocks exchange-traded funds (ETFs) and alternative investments, such as commodities and real estate..

In contrast, Acorns focuses on beginner investors with its ready-made portfolios made of stocks, ETFs and bonds. Gold members have the option to create customized portfolios based on the assets they choose. Additionally, Acorns has offerings unique to college students, plus a Round-Up feature that puts your leftover change toward investments, so not a penny is wasted.

Compared to their competitors, you get a range of financial services when using either platform. From loans to checking accounts, both SoFi and Acorns offer more than just investing services. While that is the point of interest here, these robo-advisors may fit into your financial routine in other ways that are worth checking out.

SoFi vs. Acorns: Fees

One of the bigger points of comparison between SoFi and Acorns is their fee system. The two platforms have very different ways of assessing fees.

SoFi Invest does not charge its users any management fees or commissions. However, there is a $5 minimum to open a Self-Directed account and $30 minimum for a Robo account.

By contrast, Acorns offers its services through tiered subscriptions. This is relatively unique among online brokers, who often use minimum account balances, account opening fees or even premium account pricing. Users can choose from Bronze for $3 a month, $6 a month for Silver or $12 a month for Gold, depending on the level of services they require. There are no minimum account balances or service-related fees, such as transaction fees.

SoFi vs. Acorns: Services & Features

Another major difference between SoFi vs. Acorns is their portfolio options.

SoFi offers an Active Investment route that allows you to take a hands-on approach with your portfolio. If you choose the Automated option, you will fill out a questionnaire asking about your financial goals, time horizon and risk tolerance. After that, SoFi churns out an automated portfolio that matches your financial preferences. From there, you can just sit back and monitor your investments over time.

Tradable securities include stocks, ETFs, fractional shares (SoFi Bits) and alternative investments. However, there are not many trading tools to help you monitor or assess the products.

While there are not many investment tools or a lot of market data to use, SoFi offers free financial counseling. This feature comes without any extra charges and provides users access to Certified Financial Planner™ (CFP®).

In comparison, Acorns offers the option of both active and passive investing, giving you greater flexibility in how you trade. Pre-made portfolios offer traders several portfolios to choose from, including conservative to aggressive options. You can choose the portfolio that best fits your finances and risk tolerance

Depending on the account level you choose, you have access to several different features to complement your portfolio. For example, Gold membership allows access to an early investment account for your children. However, with any tier, you receive the Round-up feature that uses leftover money from purchases toward investing.

Both SoFi and Acorns promise similar automated experiences, with auto-rebalancing and retirement account options but no tax-loss harvesting.

SoFi vs. Acorns: Online & Mobile Experience

SoFi and Acorns have strong mobile platforms that they encourage their investors to use.

SoFi’s online and app iterations are easy to use and offer comparable services. The same is true of Acorns. Both make online investing simple to understand without the denser features that can weigh down other robo-advisors.

SoFi and Acorns also promote the use of their other services. For example, there is an Acorns online checking account that uses the same Round-Up feature, where Acorns will round up your purchase to the next dollar and invest the change for you.

If you are a new investor, you might be looking for a platform that provides educational resources. As a larger financial service, SoFi offers resources to help improve your financial literacy in all areas of personal finance. SoFi Learn promotes a large variety of articles and videos discussing a wide variety of topics

If you need support throughout your investing journey, Acorns offers customer service via email, phone or chat, while SoFi provides support via phone and chat. SoFi clients also have access to Certified Financial Planners as part of the service.

SoFi vs. Acorns: Tax Considerations

When choosing between SoFi vs. Acorns, it is important to consider how taxes will affect your returns. Neither platform offers tax-loss harvesting, so understanding how your investments are taxed is key.

If you use a taxable brokerage account, you will owe taxes on dividends and realized capital gains. For example, both SoFi and Acorns invest heavily in ETFs, which can generate dividend income that is taxable in the year it is paid out. If you sell investments at a profit, you may also owe capital gains taxes, at short-term or long-term rates, depending on how long you held the assets.

To help minimize your tax burden, both SoFi and Acorns offer tax-advantaged accounts. SoFi allows you to open traditional and Roth IRAs, which allow your investments to grow tax-deferred or tax-free, depending on the account type.

Acorns also supports IRAs through its higher subscription tiers. These accounts are designed for long-term retirement savings and can shield your gains from annual taxation, although early withdrawals can trigger penalties.

Before choosing which type of account to open, consider your overall financial goals and time horizon. If you are saving for retirement, a tax-advantaged IRA on either platform may make more sense than a taxable account. However, if you want access to your funds before retirement, a taxable account may be more appropriate — just remember to budget for the taxes that come with it.

Who Should Use SoFi?

SoFi Invest is a solid option for beginning investors. The low fees and ability to customize your portfolio are appealing if you are still creating an investment strategy or building wealth. It offers more variety in your investment experience than Acorns, which more active traders may prefer. There are also certain benefits, such as ETFs and fractional shares, which stack up against Acorns.

However, its range of individual securities is minimal compared to other online brokers. If you want a more sophisticated or complex trading platform, there are other options. Many even have comparable prices, which means you do not have to sacrifice trading tools for high fees.

Who Should Use Acorns?

Acorns also suits new investors and directly targets college students who want investment experience. It can help those who may not have the financial savvy to put their pennies to work. Alternatively, older individuals who are also starting to invest may appreciate the service. It fits individuals who prefer a passive strategy or want to wait before building their portfolio. Overall, it is a promising financial management tool for those with little to invest. ts subscription model is cheap and transparent to boot.

However, if you have a small portfolio, the subscription fee can eat up more than you think, so be sure to weigh your options carefully.

Bottom Line

When comparing SoFi Invest vs. Acorns, there are many similarities, and they both stand as excellent options for new or young investors. Their online services allow new traders with little wealth to begin exploring the world of investments. In that way, both are valuable options that could benefit any beginner. However, if you are looking for more customization, SoFi may be the stronger option for your needs. Ultimately, it all depends on what you need from a robo-advisor. SoFi and Acorns have competitive prices, but if you need a more complex system, it is a good idea to explore your options.

Ask a financial advisor for recommendations on the best trading platform based on your investment preferences, risk tolerance and time horizon.

Investing Tips

If you’re new to investing, human help might be even more valuable. Consider speaking with a financial advisor about building an investment portfolio. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Before you start using either SoFi or Acorns, use SmartAsset’s investment calculator to “run the numbers” on your investment plan so you can have confidence that you’re on a sensible road to achieving your financial goals.