SoFi Invest Begins Options Trading Rollout
You’ve asked, and we’re answering: SoFi is launching options trading! Over the coming weeks, we’ll be rolling out the ability for SoFi Invest members to buy puts and calls (and sell to close the positions), making it simpler than ever to do all your trading in the same app where you manage all of your money.
At SoFi, options trading will be without commission, or contract fees. We’ve worked hard to simplify your experience to make trading options a seamless, easy-to-use experience, whether via our app or on our website, and provide investors of every experience level the tools and resources they need to trade with confidence and achieve their financial goals.
What are options?
Options are contracts giving the purchaser the right to buy or sell a security, like a stock or exchange-traded fund (ETF), at a fixed price within a specific period of time. Options trading strategies can be used to potentially generate higher returns or limit losses.
Eligible SoFi Invest members will be able to buy options calls or puts once approved to trade.
What are calls and puts?
A call option gives the holder the right to buy an underlying asset, like a stock, for a specific price, also called the strike price.
A put option gives the holder the right to sell an underlying asset at the strike price.
In general, if you think the underlying asset price will go up, you would buy a call option. But if you believe the underlying asset price will go down, you would buy a put option.
How do I get started trading options?
We’ll be rolling out options over the coming weeks to all SoFi Invest members, so keep an eye out on your SoFi Invest tab for access. Before trading, you’ll need to go through a quick questionnaire to determine if this is the right trading strategy for your needs to reach your overall investing goals and to ensure you understand the corresponding risks.
If you are not approved after, you are able to continue to try again as you get more trading and investing experience. SoFi has created several educational articles to help you prepare to trade options, including our Options Trading 101 guide, to ensure you understand these trading strategies fully. Additionally, if you’re not sure if trading options makes sense for you, SoFi members are always able to meet with a credentialed financial planner to determine the best financial strategy for your specific needs.
I’m interested in trading other options strategies – does SoFi offer those?
For now, SoFi is only offering the ability to buy calls and puts, as we know that suits the needs of most of our members and fits within our goal of helping our members get their money right. As always, we strongly consider member feedback when expanding our product offerings, so make sure to check back for future updates!
Still have questions about SoFi’s options trading offerings? Find more here.
Interested in studying up on options trading? See our catalog of educational options trading articles here.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
INVESTMENTS ARE NOT FDIC INSURED – ARE NOT BANK GUARANTEED – MAY LOSE VALUE
Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org).
Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Before an investor begins trading options they should familiarize themselves with the Characteristics and Risks of Standardized Options. Tax considerations with options transactions are unique, investors should consult with their tax advisor to understand the impact to their taxes.
Advisory services are offered through SoFi Wealth LLC, an SEC-registered investment adviser.