Key Takeaways
- SoFi Technology said it is adding new options products for its customers, with zero commissions and no contract fees.
- The company said it made the move in response to demand for more offerings.
SoFi Technology (SOFI) wants to make it easier to trade options for its customers.
The digital financial services provider said Thursday it has started rolling out so-called “level 1” options—which are designed for beginners—for its SoFi Invest members, including covered calls and cash-secured puts, in addition to the level 2 strategies already available.
The new offerings come with no commissions or contract fees, and SoFi said it will provide built-in educational resources to help members understand how they work. SoFi said users will be able to apply for approval in the company’s app, and that it plans to make the feature available to all eligible members in the coming weeks.
Why This Matters
By eliminating fees and adding educational tools, SoFi is lowering some barriers to options trading for its customers. However, options trading can be riskier than trading stocks, and SoFi warned it may not be suitable for everyone.
A number of SoFi’s competitors, including Charles Schwab (SCHW) and Fidelity, already offer level 1 options trading.
“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,” SoFi CEO Anthony Noto said in a statement.
SoFi, which said it made the move in response to growing customer demand, added it expects to offer “additional options levels and strategies, options trading in IRAs, and zero day to expiration contracts” in the future.
Shares of SoFi rose around 1% Thursday and have gained close to 70% year-to-date.
