Minimum account balance and deposit at SoFi Invest as of September 2023
This article discusses what the minimum account balance (if required) and the minimum deposit (if required) at SoFi Invest stand for. Find out in which cases you must have a minimum balance at SoFi Invest.
Have you ever accidentally mixed up the minimum account balance with the minimum deposit? Rest assured, you’re not the only one. To prevent any confusion, we'll tell you what they are and how they differ from each other.
SoFi Invest offers stock/ETF margin trading. You can trade stocks/ETFs on margin, meaning you can borrow money from the broker to increase your trading position.
SoFi Invest offers margin and derivative trading: You can trade stocks/ETFs on margin, meaning you can borrow money from the broker to increase your trading position. The following derivative products are also accessible:
| SoFi Invest | Alpaca Trading | Robinhood | |
|---|---|---|---|
| Futures | No | No | No |
| Options | No | No | Yes |
| Forex | No | No | No |
Data updated on September 14, 2023
Note that most brokers offer several account types. If you open a cash account, you don't have to worry about margin requirements because you can only invest the funds that you deposited in the account. Some brokers don’t even require a minimum deposit for cash accounts. In turn, a margin account allows you to borrow money from your broker so you will have to comply with margin rules.
The minimum account balance is the amount that you're required to maintain on your account when you use leverage/margin in trading. Having this amount available is necessary to avoid negative consequences such as a margin call or the liquidation of your assets. If the amount of funds in your account falls below the minimum account balance requirement, you will have to deposit additional funds.
Bear in mind that it is your responsibility to ensure your account is properly funded. You should monitor your account at least on a daily basis to make sure you always meet your broker's margin requirements. It is not a good idea to wait until you get a margin call, because if you miss it, your broker may liquidate some of your assets and you could end up with considerable losses.
The minimum deposit is the minimum amount required for opening an online brokerage account. While some brokers do not require a minimum deposit, others do. The minimum deposit requirement means that you will need to transfer this amount to your brokerage account from your bank account in order to start trading. You can check the minimum deposit at SoFi Invest here.
The term margin is used widely in the financial world. Note that margin requirements for different asset classes, such as stocks and options, may be different.
There are general margin requirements for all stocks when you trade stocks/ETFs on margin at a US-regulated broker. On the other hand, if you trade derivative assets such as futures or options, the minimum account balance depends on the specific asset you trade as well as the broker's requirements. In both cases, you have to comply with margin requirements and maintain the minimum account balance at all times.
Minimum account balance at SoFi Invest as of July 2023
Minimum account balance for stock/ETF margin trading
When trading stocks and ETFs on margin, the broker itself determines the minimum account balance you must always maintain in your SoFi Invest margin account.
Minimum account balance at SoFi Invest as of July 2023
Minimum account balance for derivative products
SoFi Invest offers derivative products to its clients:
Pattern Day Trading at SoFi Invest
The Pattern Day Trading (PTD) Rule applies at SoFi Invest. According to FINRA rules, you are a day trader if you execute at least four day trades within five business days.
Pattern Day Traders have to maintain a minimum account balance of $25,000 in their margin accounts. This allows them to engage in unlimited day trading. Brokers are free to impose a higher minimum requirement, which is often called a house requirement. If the account balance drops below the set minimum, traders are not permitted to day trade until the minimum level is restored. If the account balance is less than $25,000, maximum four day trades are allowed in five business days.
Minimum account balance at SoFi Invest as of July 2023
Minimum amount to open an account at SoFi Invest
Good news: the minimum deposit to open a SoFi Invest account is $0. There are brokers that require as much as a couple of thousand dollars. You can check in the table below what is the minimum deposit at the competitors of SoFi Invest.
| SoFi Invest | Alpaca Trading | Robinhood | |
|---|---|---|---|
| Minimum deposit | $0 | $0 | $0 |
Data updated on September 14, 2023
SoFi Invest's self-directed and robo-advisory accounts both have a zero deposit requirement. SoFi Invest does not offer margin accounts at the moment.
Minimum account balance at SoFi Invest as of July 2023
Bottom line
Now you know what the minimum deposit and the minimum balance are at SoFi Invest and you understand the difference between the two. If you want to dig deeper, read our article on margin calls and short selling.
The minimum deposit is the minimum amount required to open a new online broker account.
In turn, the minimum account balance is the amount on your margin account or on your account for trading leveraged products that you're required to maintain to avoid fees.
Don't forget that your maintenance margin requirement may change constantly and it is your responsibility to keep an eye on it. You should place additional deposits or close some other positions on your account if it is getting too close to the maintenance margin level. You definitely want to avoid getting that dreaded margin call or wait until your broker liquidates some of your assets and positions.
