SoFi Technologies Inc. (NASDAQ: SOFI), a brokerage that offers a variety of cryptocurrencies takes a modern approach to personal finance by incorporating a social aspect where you can see users' investment allocations. The simplicity of the SoFi platform makes it perfect for beginning and intermediate traders.
Webull is primarily a stock brokerage, although it does offer a few options for crypto. The platform's intuitive features cater to more experienced and self-directed investors but can still be learned fairly easily.
***As of November 2023, SoFi decided to end its crypto services by the end of that calendar year. However, this review offers a wealth of unique information about both platforms that could still be useful to you.
What is a Cryptocurrency Brokerage?
Cryptocurrency brokers are intermediaries that facilitate the buying and selling of cryptocurrency. Neither SoFi or Webull are solely cryptocurrency brokers, as crypto is just a small portion of their offerings. However, both platforms let investors buy and sell certain digital assets like Bitcoin, Ethereum and Litecoin. Whereas the market sets the price of cryptocurrency assets through buy and sell orders, brokerages set the price of assets on their platform.
Examples of popular cryptocurrency exchanges are Coinbase and Gemini. Both SoFi and Webull are brokerages, making it particularly easy to buy and sell cryptocurrency on these platforms. Simply connect and fund your account, and you're ready to start buying cryptocurrencies.
Important Features to Look For in Brokerages
When finding what brokerage that works best for you, be sure to consider the security of the platform, supported coins and trading features. Security should be most important to fully protect your assets. Take a look at what coins are supported on the brokerage to make sure it has the crypto you want to invest in. It is also nice to look at different trading features, as some platforms offer different screeners and chart intervals.
These small variables make a huge difference when it comes to the trading experience. Most exchanges like to focus on a specific feature and make it their selling point; make sure to consider all the options out there before picking what exchange works best for you.
Features on SoFi
SoFi offers a great social investing aspect where you can see popular investors' portfolios to help make educated trades. It offers a mobile app as well as a market comparison section and a learning page to educate new traders. SoFi functions as a perfect way for users to start purchasing crypto without understanding the more advanced technical aspects. Another nice feature it provides is $10 of free Bitcoin for opening an account.
Features on Webull
Trading on Webull is highly customizable, and you can view several charts at once. While not as simple as SoFi's interface, Webull certainly has more flexibility and in-depth trading indicators that you can use to your advantage. If you're an intermediate or experienced trader, then Webull may be a better platform for your needs.
If you're a novice trader, then you may find Webull's mobile app may be the better option for you. It's easy to setup, and the interface is more inviting to beginners.
Webull offers traders technical indicators, ratings from research agencies and an economic calendar. Its mobile app option lets you trade on the go. The application, available on iOS and Android, is easy to use and set up. Plus, the platform charges no account maintenance or opening fees.
Webull also offers options, fractional share investing and ETF trading on its platform for stocks. If you're looking to make all your investments in one place, Webull is a great option. While SoFi also offers other investment vehicles too, we've found that Webull offers more flexibility for trading strategies involving options and other trading derivatives.
Also, there's no need to worry about account minimums with Webull. You can get started investing on Webull today with as little as $1!
SoFi Fees vs. Webull Fees
SoFi offers lower fees than most of its competitors, with a fixed 1.25% fee on all transactions. Fees on other exchanges may approach 4%, so SoFi certainly offers competitive rates.
Webull does not charge any direct transaction fees for cryptocurrency trades. There is a catch, however. Webull charges spread of 100 basis points, which is equal to a 1% markup.
Security Features on SoFi vs. Webull
SoFi uses tools such as SSL encryption and 2-factor authentication to ensure user security.
SoFi also has a partnership with Coinbase Global Inc. (NASDAQ: COIN), known for its security, to facilitate crypto transactions. Partnering with Coinbase adds to the security measures SoFi has already put in place.
Webull offers the option to use a 2-step login to ensure user security. Webull’s parent company ,Webull Financial LLC, is a member of the Securities Investor Protection Corp. (SIPC). Webull protects the securities of its members from fraud (not trading losses) up to $500,000.
Altcoins Supported on SoFi vs. Webull
When deciding what exchange works best for you, it’s important to take a look at the supported altcoins on the platform. Each exchange offers a different variety of altcoins. and you’ll want to make sure that you can purchase the crypto you are looking for.
SoFi Altcoins Not on Webull
- Cosmos (ATOM)
- Tezos (XTZ)
- Filecoin (FIL)
- Synthetix (SNX)
- Polkadot (DOT)
- Compound (COMP)
- Polygon (MATIC)
- SushiSwap (SUSHI)
- Enjin Coin (ENJ)
- Maker (MKR)
- Bancor (BNT)
Webull Altcoins not on SoFi
- Zcash (ZEC)
- Dash (DASH)
- Shiba Inu (SHIB)
So, SoFi or Webull?
If you are new to purchasing crypto and like the idea of incorporating a social aspect into your investing, then SoFi would be a great platform for you. If you are an experienced trader looking for a more robust trading platform with a variety of technical indicators, then look no further than Webull.
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