Introduction
If you’re looking to invest in the stock market, you’ll want to consider the fees and charges associated with the broker you choose. One popular brokerage firm is SoFi Securities, which offers commission-free trading and a range of investment options. However, it’s important to understand the fees and charges you may encounter when using SoFi Securities. In this article, we’ll explore SoFi Securities charge and what you need to know.
What is SoFi Securities?
SoFi Securities is a brokerage firm that offers commission-free stock and ETF trading. The company was launched in 2019 and is a subsidiary of SoFi, a personal finance company. SoFi Securities is known for its user-friendly platform and educational resources for new investors.
What Charges Does SoFi Securities Have?
While SoFi Securities offers commission-free trading, there are other charges you may encounter. These charges include:
1. Regulatory Fees
Regulatory fees are charged by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). These fees are charged on all stock and option sales and are typically a few cents per share. SoFi Securities passes these fees on to its customers.
2. Margin Fees
If you use margin to buy stocks, you’ll pay interest on the amount you borrow. SoFi Securities charges a margin interest rate of 5.9% on balances under $25,000 and 5.65% on balances over $25,000.
3. Wire Transfer Fees
If you need to transfer funds to or from your SoFi Securities account, you may be charged a wire transfer fee. The fee for incoming wire transfers is $25, while the fee for outgoing wire transfers is $75.
4. ACAT Transfer Fees
If you want to transfer your account from SoFi Securities to another brokerage firm, you may be charged an ACAT (Automated Customer Account Transfer) fee. This fee is charged by the firm you’re transferring to and can range from $50 to $100.
Are There Any Hidden Fees?
No, there are no hidden fees when using SoFi Securities. The company is transparent about its fees and charges and doesn’t charge any account maintenance or inactivity fees.
How Can You Avoid SoFi Securities Charges?
While you can’t avoid regulatory fees or margin interest charges, you can avoid wire transfer and ACAT transfer fees by using ACH transfers. ACH transfers are free and can be initiated from your SoFi Securities account.
Conclusion
SoFi Securities is a popular brokerage firm that offers commission-free trading. While there are charges you may encounter, the company is transparent about its fees and charges and doesn’t charge any hidden fees. By understanding the charges associated with SoFi Securities, you can make informed investment decisions and avoid unnecessary fees.
