Robinhood plans to acquire custodial and portfolio
management firm TradePMR. The
California-based commission-free investing firm entered into an agreement to
buy the company, which targets Registered Investment Advisors, stepping into the wealth management services space.
A $7 Trillion Industry
According to Robinhood, the Registered Investment
Advisor market represents one of the fastest-growing sectors in wealth
management, valued at over $7 trillion. With this acquisition, Robinhood now plans to bridge
the gap between tech-savvy retail investors and fiduciary advisors who can
provide customized financial guidance.
TradePMR’s established network of 350 firms and
decades of experience in RIA custodial services offer Robinhood a solid
foundation to build its new advisory capabilities.
With TradePMR’s expertise, Robinhood plans to
integrate managed assets and self-directed investments into a single, intuitive
platform. The company estimates that it will inherit an estimated $84 trillion
in wealth over the coming decades.
Enhancing Access for Advisors
Additionally, Robinhood and TradePMR aim to create a
referral program that connects fiduciary advisors to Robinhood’s expansive
customer base. This collaboration seeks to help advisors grow their businesses
and offer Robinhood users easier access to professional financial advice.
The acquisition deal, valued at approximately $300
million in cash and stock, is expected to close in the first half of 2025,
pending regulatory approval. By acquiring TradePMR, Robinhood will diversify beyond
self-directed trading to cater to evolving customer needs with wealth
management solutions.
Expect ongoing updates as this story evolves.
Robinhood plans to acquire custodial and portfolio
management firm TradePMR. The
California-based commission-free investing firm entered into an agreement to
buy the company, which targets Registered Investment Advisors, stepping into the wealth management services space.
A $7 Trillion Industry
According to Robinhood, the Registered Investment
Advisor market represents one of the fastest-growing sectors in wealth
management, valued at over $7 trillion. With this acquisition, Robinhood now plans to bridge
the gap between tech-savvy retail investors and fiduciary advisors who can
provide customized financial guidance.
TradePMR’s established network of 350 firms and
decades of experience in RIA custodial services offer Robinhood a solid
foundation to build its new advisory capabilities.
With TradePMR’s expertise, Robinhood plans to
integrate managed assets and self-directed investments into a single, intuitive
platform. The company estimates that it will inherit an estimated $84 trillion
in wealth over the coming decades.
Enhancing Access for Advisors
Additionally, Robinhood and TradePMR aim to create a
referral program that connects fiduciary advisors to Robinhood’s expansive
customer base. This collaboration seeks to help advisors grow their businesses
and offer Robinhood users easier access to professional financial advice.
The acquisition deal, valued at approximately $300
million in cash and stock, is expected to close in the first half of 2025,
pending regulatory approval. By acquiring TradePMR, Robinhood will diversify beyond
self-directed trading to cater to evolving customer needs with wealth
management solutions.
Expect ongoing updates as this story evolves.
This post is originally published on FINANCEMAGNATES.
