Is SoFi Invest Safe?
Yes, SoFi Invest is a perfectly safe option for your investment needs. It's a legitimate company with no signs of any scams. Keep reading if you want to learn more about SoFi's credibility and security.
Who Owns SoFi?
As of March 2024, SoFi, officially known as Social Finance Inc., is a publicly traded company on NASDAQ. Since 2018, it has been led by CEO Anthony Noto, who previously held executive roles at the NFL, Twitter, and Goldman Sachs.
The largest single shareholder is SoftBank Group Corp., owning 8.1% of the shares. Notably, the top twenty-five shareholders collectively hold less than 50% of the shares, ensuring no single entity controls the company.
SoFi insiders own about 8% of the company’s stock, indicating their confidence in its future. The public holds the majority of the shares, nearly three-quarters, which underscores the company's obligation to its public shareholders.
Background
SoFi was founded in 2011 by four Stanford Business School students. By 2016, it became the first online lender to earn Moody’s AAA rating. CEO Mike Cagney resigned in 2017, and Anthony Noto took over in 2018.
In 2018, SoFi settled with the FTC over claims about savings from loan refinancing. By 2024, SoFi went public via a SPAC, now trading on NASDAQ as SoFi.
Is SoFi Legitimate?
SoFi Technologies Inc. is registered with the U.S. Security and Exchange Commission (SEC) and incorporated in Delaware. SoFi Securities is also registered with the SEC and based in New York. Both are members of FINRA and have no disciplinary history.
SoFi is a legitimate personal finance company with over $6 billion in processed student loans, and it’s moving towards obtaining a national bank charter through its acquisition of a community bank.
SoFi Competitors
Is SoFi Insured?
SoFi Invest uses top-notch security measures like 256-bit SSL encryption. Client funds are handled by Apex Clearing, which provides SIPC insurance up to $500,000 and FDIC insurance for bank sweeps. SoFi Money offers up to $1.5 million in FDIC insurance.
SoFi Complaints
SoFi is not BBB-accredited, likely because it hasn't sought accreditation. It holds an A+ rating from BBB, based on its business practices rather than customer reviews. Despite poor customer ratings on BBB, these do not impact its official rating.
Wrapping up: Is SoFi a Scam?
SoFi is definitely not a scam. It's a relatively new broker but takes all necessary measures to ensure your investment is secure. With SoFi Invest, your money receives the same level of protection as with any other reputable broker-dealer.
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Updated on 7/5/2024.
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