SoFi Active Investing vs. Webull: Which Broker Is Right for You? | The Motley Fool (2024)

SoFi Invest and Webull are similar in many ways when it comes to their cost structure. Like most online-based brokers these days, both offer commission-free stock trading, and don't charge monthly maintenance fees.

Webull offers cryptocurrency trading, and SoFi Invest does not. Webull charges a flat 1% markup.

In addition, while Webull doesn't offer mutual fund investing, SoFi Invest does have that option. But both charge the same $75 fee to move an account to another brokerage.

For options traders, it's worth noting that SoFi Invest does offer option trading with an exercise and assignment fee of $5 while Webull is one of the few brokers that offers commission-free options trading, with no per-contract fees (excluding certain index options, which have a $0.55 per contract fee).

When it comes to the types of investments available on the platform, SoFi Invest and Webull are almost on equal footing.

Both offer stocks and ETFs, and both platforms allow investors to buy fractional shares. This can be a big perk for newer investors. For example, if Amazon stock is trading for $3,000 per share, you can still invest in a piece of a share for just a few dollars through either of these brokers.

As of February 2024, Webull offered eight cryptocurrencies for trading (four in New York State). As of Dec. 20, 2023, SoFi Invest no longer offers cryptocurrency trading.

While SoFi Invest offers mutual fund investing, Webull does not. And neither offers bonds, CDs, futures, or foreign exchange trading. Simply put, both of these brokerage platforms are primarily designed to allow investors to buy and sell stocks, ETFs, and options.

When it comes to the account types available to open, neither SoFi Invest nor Webull is a particular standout, although both offer more types than other low-frills, mobile-first brokerage platforms.

For one thing, both offer standard (taxable) brokerage accounts. However, there are a couple of things to be aware of. Of the two, only SoFi Invest lets customers open a joint account with another person.

SoFi also offers a top-rated robo-advisor service, SoFi Automated Investing, designed for investors who want to put some or all of their portfolios on autopilot. Webull also offers a robo-advisor option.

READ MORE: Best Robo-Advisors

Both platforms offer traditional and Roth IRAs to help clients invest for retirement, but if you're self-employed and want to contribute more than the standard IRA maximum to your account, SoFi Invest offers SEP IRAs, while Webull doesn't.

LEARN MORE: Best IRA Accounts

Neither broker offers custodial accounts such as UGMA or UTMA accounts. Webull doesn't offer any savings, or credit card products, though it does offer a high-yield cash management feature. However, SoFi offers checking and savings accounts, and it also has its own credit card. It's also worth noting that SoFi was approved for a banking charter in 2022, so it's fair to say that the company's banking products could expand in the near future.

If you're looking for a user-friendly way to buy and sell stocks, both of these offer clean, easy-to-use apps that make it easy to buy and sell stocks.

SoFi's is more of a well-rounded financial app. SoFi's brokerage platform is relatively new and was added to its already successful financial services app that had been around for years. On the other hand, the Webull app was purpose-built for trading.

Both companies have well-rated apps, and the main difference is the massive functionality of the SoFi app vs. the trading-first nature of Webull.

The SoFi app:

• Has 4.8 out of 5 stars in the App Store
• Earned 3.8 out of 5 stars in the Google Play store
• Also lets people manage their banking and loan accounts, check rates, apply for loans, and more.

The Webull app:

• Has 4.7 out of 5 stars in the App Store
• Ranks 4.3 out of 5 stars on Google Play
• Earns top marks for ease of use while offering somewhat sophisticated trading tools like charting software, stock screeners, and more.

It's also worth noting that while both offer web-based trading platforms, both are designed as mobile-first. However, Webull offers its own Webull Desktop trading software designed for sophisticated investors to create a fully customizable trading experience. So, if you're an active trader, Webull's platform might be more along the lines of what you're looking for.

SoFi Invest and Webull have quite a lot in common, and both are geared toward newer (younger) investors who want a tech-driven investing experience. However, there are some big differences between them.

LEARN MORE: Best Online Stock Brokers for Beginners

SoFi Invest is part of the SoFi personal finance platform, which is designed to (eventually) replace everything that a traditional bank and brokerage can do, all in one easy-to-use app. And SoFi Invest is generally a better fit for long-term investors who simply want the ability to buy, hold, and sell stocks.

On the other hand, Webull is a solid choice for long-term investors but is built with more active traders in mind. It offers zero-commission options trading, and a more sophisticated trading software than SoFi has.

The bottom line is that the best course of action is to consider the features and differences, and decide which is the better fit for your specific needs as an investor.

LEARN MORE: Best Brokers for Fractional Shares