SoFi announced on Thursday that customers with active investment accounts can now apply for fee-free Level 1 options trading, including covered calls and cash-secured puts.
An option is a contract giving an investor the right, but not the obligation, to buy or sell the underlying asset at a specific price on or before a certain date.
Options are traditionally sorted into four levels based on risk, with Level 1 being the lowest-risk and designed for beginner investors. SoFi will continue to provide eligible customers with Level 2 options, which typically involve more risk and more advanced strategies. SoFi launched its original options trading service in
“One of the most consistent requests we heard from SoFi Invest members was access to options Level 1, and we’re thrilled to deliver on that demand,” said SoFi CEO Anthony Noto. “By expanding access to options trading and embedding education directly into the experience, members can responsibly diversify their strategies and pursue their long-term financial goals with confidence, all within SoFi’s one-stop shop.”
SoFi will determine eligibility and approve customers for access to options trading based on factors such as trading experience, investment objectives and financial situation, according to the company. Educational resources and approval processes will also be provided within the SoFi app to help members understand options trading risks.
For SoFi Invest, the new options trading offering is the next step in the company’s expansion of investment products launched over the past year. SoFi’s investment offerings now include access to IPO investing, alternative assets, private markets, ETFs and a
SoFi, which originally started as an online student loan refinancer and has since expanded into a wide range of digital banking products and services, also announced in June of this year that it would