Why SoFi’s Brokerage Account is Great for Newbie Investors | Personal finance
SoFi (NASDAQ: SOFI) opens doors in particular for everyday investors. In this clip from “The Future of Fintech” on Motley Fool live, recorded on February 10Motley Fool contributors Matt Frankel and Jason Hall explain how SoFi caters to new and first-time investors by lifting the curtain on IPO participation, a service that helps differentiate SoFi from its competitors.
Matt Frankel: SoFi differentiates its brokerage by allowing ordinary investors to participate in IPOs with no minimum account size. If Stripe goes public, you might be able to participate in it through SoFi by depositing, say, $100 into a brokerage account, which you can’t do with most other brokers. I tried to invest in early IPOs by TD Ameritrade (NASDAQ:AMTD) for years and I succeeded maybe once. I would have liked to buy in the Airbnb (NASDAQ: ABNB) IPO at the end of 2020, to name just one example. I was excluded because my broker did not offer it. It’s also a big differentiator, especially for younger investors who have seen this as the realm of the rich for years and years.
Jason Hall: I just want to point out the delicious irony here that, thanks to SoFi, Dark Moon was offered the opportunity to invest in a digital bank IPO.
frankel: NuBank (NYSE: NU). [laughs] Well, they are in Brazil. It is not a direct competitor.
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TD Ameritrade is an advertising partner of The Ascent, a Motley Fool company. Jason Hall owns Airbnb, Inc. and SoFi Technologies, Inc. Matthew Frankel, CFP® owns SoFi Technologies, Inc. The Motley Fool owns and recommends Airbnb, Inc. The Motley Fool has a Disclosure Policy.
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