Robinhood to offer wealth management and private banking for everyday investors
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Robinhood is stepping up its game in the financial services space, rolling out wealth management and private banking offerings aimed at retail investors with smaller portfolios.
The move signals the trading platform's ambition to shape user financial behavior beyond trading, offering tools traditionally reserved for high-net-worth clients.
The company on Wednesday unveiled 'Robinhood Strategies', a new wealth management service exclusively for its premium Gold subscribers.
The service charges a modest 0.25% annual fee—capped at $250—and allows users with just $50 to access expert-managed portfolios of exchange-traded funds. Those investing $500 or more will also gain access to individual stocks curated by Robinhood's in-house investment team.
Steph Guild, President of Robinhood Asset Management and a former JPMorgan Chase executive, said the platform is filling a gap in the market. 'When we looked across the landscape today, we felt there was a gap and an opportunity,' she said, adding that the service aims to level the playing field for everyday investors.
The initiative reflects a growing demand for accessible financial planning tools. A 2023 survey by Betterment found that retail investors who had access to financial advisers reported significantly higher confidence in managing their finances.
In addition to wealth management, Robinhood is set to launch a private banking service for Gold users later this year. The offering will include estate planning, tax advice, and luxury perks such as tickets to the Met Gala and the Oscars. The push into premium services is part of Robinhood's broader strategy to 'democratize' financial tools once limited to the 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.
An AI-powered investment tool is also in the pipeline for 2025, which will offer real-time market analysis and insights—another nod to Robinhood's efforts to bring institutional-grade features to everyday users.
The expansion comes as Robinhood's stock has climbed 29% so far this year, bucking broader market trends. The Nasdaq Composite (.IXIC) has declined by 5.4% over the same period.
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