I know what you’re thinking: Robinhood is making a move into wealth management? Yup. The platform that turned your cousin into a meme stock “expert” is now getting serious. In short, Robinhood just announced it’s acquiring TradePMR, a custodial and portfolio management platform for Registered Investment Advisors (RIAs). And in case you’re wondering, this isn’t just some random fintech deal. TradePMR has been around for over 25 years and manages more than $40 billion in assets. So yeah, this is bigly big. 

(Source: Giphy) 

The deal involves a soul-crushing $300 million, give or take a few customary price adjustments. Some cash, some stock. Pocket change for Robinhood, but a strategic goldmine, nonetheless Why? Well, the RIA market is part of the wealth management industry that’s worth a staggering $7 trillion—and growing fast. This acquisition is Robinhood’s way of saying, “I want to be like my Daddy Citadel when I grow up.” 

(Source: Reuters) 

Which when it comes to their target audience, fits right in-line. If you think about it, the degenerate traders who jumped on RobinHoods big swinging platform four years ago are now four years older. They’re growing up. Meaning, some (not all) are moving from HODL to wondering how the hell to actually manage a portfolio. Enter the RIAs. These fiduciary advisors (translation: they have to act in your best interest–or so they tell me) tailor advice based on your financial goals, risk tolerance, and whether or not you’re still holding onto those AMC shares for dear life.

Naturally, Robinhood sees the writing on the wall. Millennials and Gen Z are sitting on an $84 trillion wealth transfer over the next couple of decades. That’s a lot of avocado toast and “Supreme” clothing. And with Robinhood’s more than 24 million funded accounts—about 75% of which are Millennials and Gen Z—are growing up and ready for some real financial guidance. So kudos to Vlad for looking ahead (for him, not his customers LOL). 

(Source: X) 

Now with that said, here’s where it gets interesting for the advisor portion. TradePMR’s RIAs are about to get access to a whole new audience: Degenerate little sh*ts that will be tomorrow's future. (oof). Which is why Robinhood and TradePMR are planning to build a referral program to connect their customers with fiduciary advisors. New clients? Check. More assets under management? Double-check. Meaning it doesn’t take a rocket scientist to see this could be a game-changer for RIAs who historically struggle with client acquisition.

In addition to the fat stack of $300 million, RobinHood is clearly going full-send on this shindig. For instance, they’re planning to build a seamless platform where advisors and clients can manage everything from self-directed trades to professionally managed portfolios—all in one place. It’s like your Robinhood app, but now with financial planning for how 28 year olds should really be acting instead of YOLOing their entire paycheck (presumably from Lululemon) into Dogecoin. 

(Source: Barrons) 

So all in all, it ain’t 2020 anymore, and RobinHood is growing up. The company has evolved—credit cards, desktop platforms, futures, index options, and now, a full-blown leap into wealth management. The TradePMR deal is just the latest push to diversify beyond free stock trades and into the broader financial services world.

And if Robinhood’s 178% stock gain in 2024 is any indication, investors are loving the new direction. This acquisition is all about positioning Robinhood as a serious player in the wealth management space—with a bigly goal to take on heavyweights like Charles Schwab and Fidelity, both of which already dominate the RIA custody market.

So, what’s next? Well, simply put, Robinhood plans to roll out a digital financial advice service (fancy term for robo-advisor) next year. And with TradePMR’s help, they’ll be serving up financial advice to the next generation of investors—whether they’re ready for it or not.

In the meantime, I personally don’t trade on Robinhood because… well, I hold grudges. But obviously, they are creating a space for themselves in the red ocean of RIA’s. Now whether they pull it off, only time will tell… but for now, keep an eye on the stonk of stonks. As always, stay safe and stay frosty, friends! Until next time… 

P.S. Do you hear that sound? If you listen closely, it’s the sound of a stock getting probed with massive short interest, and a sky-high borrow fee that would make your 8% mortgage look like a friggin’ happy meal. Meaning, once this catalyst lights a fire under this little known stock, we could potentially see some fireworks POP… and when I say pop… I mean triple-digit to the moon pop. Curious to know what the ticker is? Click here for the details.

Stocks.News holds positions in Robinhood as mentioned in the article.