12 hours ago · Updated
What is a SoFi Invest Cash Account?
A SoFi Invest Cash Account is a self-directed brokerage account that lets you invest using only the money you deposit—no borrowing or margin involved. It’s designed to help you invest toward specific goals.
Why would I want multiple cash accounts?
Multiple cash accounts allow you to organize separate accounts however you would like. You can have accounts for different strategies, time horizons, or individual goals.
Do I need to fill out all my information again to open another account?
No. If you already have a SoFi Self-Directed Margin account, much of your information is pre-filled - and you can simply confirm your information, or edit it if you choose, to make the process faster.
Can I name my cash accounts?
Yes. Each cash account can have a unique name so you can easily distinguish between your goals. If you try to use the same name twice, you’ll be asked to choose a different one.
Can I still have a margin account if I open cash accounts?
Yes. You can have both—one margin account and up to three cash accounts at the same time.
Why do I have to wait for funds to settle in my Cash Account?
In a SoFi Cash Account, you’re investing using only the money you’ve deposited—there’s no borrowing or margin involved. Because of that, every trade has to be backed by actual cash that has fully completed the transaction process.
When you sell an investment, the proceeds typically take one business day (T+1) to settle. Until that happens, the money appears in your account, but it isn’t fully available yet.
This is why timing matters more in a cash account than in other account types.
Can I use money from a sale right away in my Cash Account?
You may be able to place a new trade using proceeds from a recent sale, even if those funds haven’t settled yet. However, in a cash account, there’s an important expectation: if you use unsettled funds to make a purchase, you should hold that investment until the original funds settle.
If you sell too quickly, it can create a violation—even though the trade itself went through successfully.
What happens if I sell an investment too quickly after buying it?
If you buy an investment in your Cash Account using funds from a recent sale and then sell it before those funds settle, it can trigger a Good Faith Violation.
From your perspective, it may feel like you’re simply moving money between investments. But behind the scenes, the system sees that the purchase wasn’t fully funded with settled cash at the time you exited the position.
This is one of the most common issues members run into with cash accounts.
Why is “free riding” not allowed in a Cash Account?
Cash Accounts are designed to ensure that every trade is fully paid for with available funds.
Free riding happens when a trade is completed without ever being covered by settled cash—for example, if you buy and sell an investment without having sufficient funds in your account to pay for it.
Because cash accounts don’t allow borrowing, this type of activity isn’t permitted and may result in restrictions on your account.
What's the difference between a self-directed margin account and a self-directed cash account?
Your self-directed brokerage accounts come in two types: margin and cash. Here's how they compare.
This will be your first brokerage account by default. With a margin account, you can:
A cash account lets you buy and sell investments using only the money you deposit. No margin, no borrowing. You can open up to 3 cash accounts to organize how and where you invest for different goals or strategies.
Both account types let you trade stocks, ETFs, options (if eligible), and other securities.
Why is my first account a margin account?
When you open a self-directed brokerage account with SoFi Invest, your first account is a margin account by default. This doesn't mean you're borrowing on margin. It just means the account supports margin if you're eligible and choose to enable it later.
You don't need to do anything differently. If you prefer to invest with only the cash in your account, your margin account works that way too. You can also open up to 3 additional cash accounts if you want to separate your investments by goal or strategy.
How do I open a self-directed cash brokerage account?
You can open up to 3 cash accounts alongside your margin account.
To open a cash brokerage account: