SoFi vs Betterment is a commonly asked question, which one should you choose? The argument as to who is better can never really be settled as I believe it’s different strokes for different horses. That is, different options function in different ways for different people. You can only pick what option is best for you. Therefore, I hope as we journey through to explore the two platforms, you will realize which functions best for you. And you’ll be able to finally decide which you want to make use of.
Social Finance (SoFi) is an online personal finance company. They specialize in student loan financing, mortgages, personal loans, investing and banking. Over a million people now use it although it is relatively new.
Betterment is a Robo-adviser, an automated algorithm that can be customized via the personal data you provide. It offers goal-inspired and automated investments for everyday people. Betterment further takes care of the maintenance of your investments. Therefore, you can focus on other things and still be assured that your portfolio is in check.
Are you still doubting the difference in Sofi vs Betterment? These are reviews gotten on the two platforms in 2021;
|PRICING||4 STARS||LOW MINIMUM||5 STARS|
|ASSETS||2 ½ STARS||TOOLS AND FEATURES||4 STARS|
|ACCOUNT TYPES||5||ACCOUNT TYPES||2 ½ STARS|
|AUTOMATION TOOLS||5||ASSETS||3 ½ STARS|
|PRE-BUILT PORTFOLIOS||5||PRICING||5 STARS|
|ETF EXPENSE RATIO||4 ½ STARS|
|TAX STRATEGY||3 ½ STARS|
The two platforms have their pros and their cons so no one can be said to be particularly better.
Betterment is better for hands-off stock market investors while SoFi is better for hands-on stock and crypto investors. Betterment does not have a provision for crypto trading. It is better for those who do not wish to be in active investment engagement. While SoFi is better for those who are ready to dedicate time to the cause.
Major Comparison – Sofi vs Betterment
|TAX LOSS HARVESTING||NO||YES|
|NUMBER OF PORTFOLIOS||10||101|
The minimum investment rate for both platforms is zero dollars. Social Finance allows for trading with individual stocks. However, Betterment does not have provisions for particular stock trade. Social Finance also does not engage in tax-loss harvesting. However, Betterment engages in tax-loss harvesting. Social Invest users can choose to select their own investments or allow Social Finance to manage their investments. Betterment, on the other hand, does not allow you to select individual stocks to invest in.
In order to understand the platforms well, it is essential to carefully analyze the strengths and weaknesses of Sofi vs Betterment.
Pros of Social Finance
Cons of Social Finance
Pros of Betterment
Cons of Betterment
Conclusion – Sofi vs Betterment
From the above, it is evident that the two platforms offer very strong services. Therefore you just have to decide which platform is best for you. If you’re the kind that has the time for active involvement in investments, then Social Finance is for you. If you’d prefer a passive involvement, then Betterment is definitely for you.