Answer: Sola fide is perfectly consistent with the Book of James [Link]. Moreover, I am not departing from the Protestant understanding of sola fide. The historic Protestant confessions are unanimous in their teaching that:

1. Justification is by faith alone, not the merits of personal works.

2. The faith that justifies is a living faith, and necessarily produces good works.

Please take the time to read the following excerpts from the main historic Protestant confessions of faith to verify that this is so.

THE AUGSBURG CONFESSION 1530

Also they teach that men cannot be justified before God by their own strength, merits, or works, but are freely justified for Christ's sake, through faith, when they believe that they are received into favor, and that their sins are forgiven for Christ's sake, who, by His death, has made satisfaction for our sins. This faith God imputes for righteousness in His sight.

Also they teach that this faith is bound to bring forth good fruits, and that it is necessary to do good works commanded by God, because of God's will, but that we should not rely on those works to merit justification before God. For remission of sins and justification is apprehended by faith, as also the voice of Christ attests: When ye shall have done all these things, say: We are unprofitable servants. Luke 17, 10. The same is also taught by the Fathers. For Ambrose says: It is ordained of God that he who believes in Christ is saved, freely receiving remission of sins, without works, by faith alone.

THIRTY-NINE ARTICLES 1572

We are accounted righteous before God, only for the merit of our Lord and Saviour Jesus Christ by Faith, and not for our own works or deservings. Wherefore, that we are justified by Faith only, is a most wholesome Doctrine, and very full of comfort, as more largely is expressed in the Homily of Justification.

Albeit that Good Works, which are the fruits of Faith, and follow after Justification, cannot put away our sins, and endure the severity of God's judgment; yet are they pleasing and acceptable to God in Christ, and do spring out necessarily of a true and lively Faith insomuch that by them a lively Faith may be as evidently known as a tree discerned by the fruit.

THE BELGIC CONFESSION 1618

We believe that our blessedness lies in the forgiveness of our sins because of Jesus Christ, and that in it our righteousness before God is contained, as David and Paul teach us when they declare that man blessed to whom God grants righteousness apart from works.

And the same apostle says that we are justified "freely" or "by grace" through redemption in Jesus Christ. And therefore we cling to this foundation, which is firm forever, giving all glory to God, humbling ourselves, and recognizing ourselves as we are; not claiming a thing for ourselves or our merits and leaning and resting on the sole obedience of Christ crucified, which is ours when we believe in him…

We believe that this true faith, produced in man by the hearing of God's Word and by the work of the Holy Spirit, regenerates him and makes him a "new man," causing him to live the "new life" and freeing him from the slavery of sin.

Therefore, far from making people cold toward living in a pious and holy way, this justifying faith, quite to the contrary, so works within them that apart from it they will never do a thing out of love for God but only out of love for themselves and fear of being condemned.

So then, it is impossible for this holy faith to be unfruitful in a human being, seeing that we do not speak of an empty faith but of what Scripture calls "faith working through love," which leads a man to do by himself the works that God has commanded in his Word.

WESTMINSTER CONFESSION OF FAITH 1646

Those whom God effectually calleth, he also freely justifieth: not by infusing righteousness into them, but by pardoning their sins, and by accounting and accepting their persons as righteous; not for any thing wrought in them, or done by them, but for Christ's sake alone; not by imputing faith itself, the act of believing, or any other evangelical obedience to them, as their righteousness; but by imputing the obedience and satisfaction of Christ unto them, they receiving and resting on him and his righteousness by faith; which faith they have not of themselves, it is the gift of God.

Faith, thus receiving and resting on Christ and his righteousness, is the alone instrument of justification; yet is it not alone in the person justified, but is ever accompanied with all other saving graces, and is no dead faith, but worketh by love.

BAPTIST CONFESSION 1689

Those whom God effectually calleth, he also freely justifieth, not by infusing righteousness into them, but by pardoning their sins, and by accounting and accepting their persons as righteous; not for anything wrought in them, or done by them, but for Christ's sake alone; not by imputing faith itself, the act of believing, or any other evangelical obedience to them, as their righteousness; but by imputing Christ's active obedience unto the whole law, and passive obedience in his death for their whole and sole righteousness by faith, which faith they have not of themselves; it is the gift of God.

Faith thus receiving and resting on Christ and his righteousness, is the alone instrument of justification; yet it is not alone in the person justified, but is ever accompanied with all other saving graces, and is no dead faith, but worketh by love.