Robinhood Expands Horizons with Wealth Management and Private Banking

Robinhood is introducing wealth management and private banking services aimed at investors with smaller portfolios. These new services are poised to democratize access to financial tools typically reserved for high-net-worth individuals, as Robinhood seeks to influence users' financial habits and boost its Gold subscription service.

Robinhood is set to revolutionize the investment landscape by rolling out wealth management and private banking services tailored for users with modest portfolios. The trading platform aims to enhance its impact on users' financial habits by democratizing access to traditionally exclusive financial products.

On Wednesday, Robinhood unveiled 'Robinhood Strategies,' a wealth management offering for its premium 'Gold' subscribers at a 0.25% annual fee, capped at $250. With investments as low as $50, users can delve into exchange-traded funds, while a $500 minimum unlocks opportunities in individual stocks, managed by Robinhood experts.

This strategic move addresses the growing demand for professional financial advice among retail traders. By providing wealth management services, Robinhood hopes to empower users in their pursuit of financial independence. Additionally, the platform plans to introduce an AI investment tool by 2025, offering real-time market analysis.

(With inputs from agencies.)