Robinhood to Bring Wealth Management, Private Banking to Retail Investors

With the wealth management service, users investing as little as $50 have access ETF portfolios managed by Robinhood experts

|

Robinhood is rolling out wealth management and private banking services for investors with modest portfolios, as the trading platform looks to have a bigger influence on its users’ financial habits.

The company said on Wednesday it is launching ‘Robinhood Strategies’ — a wealth management service with a 0.25% annual fee, capped at $250, for its premium ‘Gold’ subscribers.

Users with as little as $50 in investments can access portfolios of exchange-traded funds managed by Robinhood’s investment experts. A $500 minimum investment will unlock access to individual stocks in the portfolios.

The move highlights growing demand for professional advice among retail traders, who are increasingly seeing investing as a strategic path to building wealth and securing financial independence, rather than just a hobby.

A survey of retail investors by Betterment last year showed that those with financial advisers felt more confident about their personal finances.

Robinhood Asset Management President Steph Guild, a JPMorgan Chase alum, said the new product could help level the playing field as personalized wealth management has long been the domain of high-net-worth clients.

“When we looked across the landscape today, we felt there was a gap and an opportunity,” she said.

It will also roll out an AI investment tool later in 2025 to provide real-time market analysis and insights.

Private Banking

The company will also launch a private banking product for its Gold subscribers later this year with estate planning, tax advice and perks such as tickets to the Met Gala and the Oscars.

Tapping into users’ demand for premium services could help it boost the adoption of its Gold subscription — which costs $5 a month or $50 a year — and fits into Robinhood’s strategy of “democratizing” access to products traditionally reserved for the ultra wealthy.

“We’re not going after someone who has $10 million. We’re going after everybody else,” said Deepak Rao, general manager and vice president of Robinhood Money.

The company’s shares have risen 29% so far this year, while the Nasdaq composite index has dropped 5.4%.

This article was provided by Reuters.

Latest News

See all >>

N.J. Is Changing Who Has to Pay the ‘Mansion Tax’

The new state budget also increases the tax, but not as much as the governor wanted.

GoFundMe Launches Charitable Giving Funds with Vanguard, BlackRock

GoFundMe has 200 million users and could broaden the appeal of donor-advised funds for charitable giving — and centralize giving.

Warren Buffett Donates Record $6 Billion Berkshire Shares

The latest donation boosts his overall giving to charities to well over $60 billion.

BlackRock Looks to Expand Private Markets to Retirement Plans

The plans reportedly will include a 5% to 20% allocation to private assets, depending on the investor's age.

Capital Group Boosts Retirement Plan Service With Advisor-Focused Upgrades

 RecordkeeperDirect additions include “fund flexibility” offering investments from other fund families.

Firms Need to Get Back to the Basics of Organic Growth, Report Urges

Some that use artificial intelligence for prospecting are reporting huge gains in lead generation.