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Sofi vs Betterment – The choice is yours to make!

Sofi vs Betterment – The choice is yours to make!

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;

Comparison Table


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


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. 

Sofi logo

Pros of Social Finance 

  • The ETFs(Exchange Traded Funds) are of low cost: The cost for exchange trade on Social Finance is low. It, therefore, makes it easier to trade.
  • There are no management fees: Social Finance does not charge management fees. Many investors like the idea of a zero-fee system.
  • Free financial advice is available: Social Finance provides free financial advice for all users. There is availability for more personal advice now. Financial advisers can now be reached via emails, texts, and calls.
  • Fractional shares are available: There is an availability to invest in Fractional shares on Social Finance. This is a great feature that attracts many investors. 
  • Free stock promotion is available for new users: Stock promotion is available for all new users and it's much better that it is free. 

Cons of Social Finance 

  • There are limited Account types: One of the cons of Social Finance is however the limit on account types. There are not many options to choose from. The options available might not be the best needed by the investor at the time.
  • Mutual funds are not available: Social Finance does not have an availability for mutual funds. 
  • There is a relatively short track record: The track record is quite short compared to that of Betterment. 
  • It does not allow for cryptocurrency to be transferred to an external wallet: Although Social Finance allows for Cryptocurrency trade, which is a plus. It does not, however, allow for cryptocurrency to be transferred to an external wallet.

Pros of Betterment 

  • There is $0 minimum account rate: Betterment also has its minimum account fees at $0. This is also a plus for Betterment. 
  • There are fractional shares available: Betterment also allows for trade-in Fractional shares. 
  • The investments are goal-based: The investment scheme on Betterment is also goal-oriented. This allows investors to trade with a goal in view. Therefore, they get to calculate their monthly and yearly investments better.
  • There is availability for tax-loss harvesting: Betterment has provision for tax-loss harvesting. 
  • Passive investment is practiced: Betterment also practices passive investment. Investors do not need to be in active engagement on the platform. 
  • There is no minimum for the Digital plan: Betterment does not also have a minimum for the digital plan. 

Cons of Betterment

  • There is a higher account minimum and fees for receiving personal advice: In order for investors to receive personal advice, they will have to pay a higher price. Automated advice is however cheaper. However, many investors prefer human advice so the price is a bit uncomfortable. 
  • It does not allow for the purchase of individual stocks: Betterment does not allow investors to purchase individual stocks for trade. 
  • It does not have access to Crypto-trading: Betterment does not have access to cryptocurrency trading. Investors cannot trade with cryptocurrency. The feature is unavailable. 

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.