Robinhood, the California-based platform known for commission-free trading, has announced plans to acquire TradePMR, a firm specializing in custodial and portfolio management services for Registered Investment Advisors (RIAs). The $300 million deal, involving a mix of cash and stock, is expected to close in the first half of 2025, pending regulatory approval.
Expanding into a $7 Trillion Market
The RIA market, valued at over $7 trillion, is one of the fastest-growing segments in wealth management. By acquiring TradePMR, Robinhood aims to bridge the gap between retail investors and fiduciary advisors, providing users with access to customized financial guidance alongside its self-directed investment offerings.
TradePMR, headquartered in Gainesville, Florida, has built a network of 350 firms and brings decades of experience in RIA custodial services. Robinhood plans to leverage this expertise to enhance its wealth management capabilities.
“Our goal is to create a category-defining advisory platform for the next generation,” said Vlad Tenev, Chairman and CEO of Robinhood. “The TradePMR team has one of the strongest RIA networks in the industry, and together, we’re looking forward to building a comprehensive solution.”
Multi-Generational Wealth Management Platform
The acquisition will enable Robinhood to integrate managed assets with self-directed investments on a single platform. The company sees this move as essential to capturing the attention of the next generation of investors, who are expected to inherit an estimated $84 trillion in wealth over the coming decades.
TradePMR’s Founder and CEO, Robb Baldwin, emphasized the importance of catering to younger investors: “The advisor industry has long struggled with retaining clients when wealth transfers to a spouse or heirs. With Robinhood’s client base, we can build a platform that connects financial advisors with this new wave of investors.”
Enhancing Access for Advisors and Clients
A key aspect of the partnership is a referral program designed to connect fiduciary advisors with Robinhood’s retail customers. This initiative aims to help advisors grow their businesses while making professional financial advice more accessible to Robinhood’s user base.
Diversifying Beyond Trading
This acquisition marks Robinhood’s first significant move into wealth management services, signaling a shift beyond its traditional focus on self-directed trading. By combining technology, accessibility, and professional advisory services, Robinhood is positioning itself as a major player in the broader financial services market.
TradePMR’s team, including Robb Baldwin, will join Robinhood to support the integration and development of its new advisory platform. With this acquisition, Robinhood is set to redefine wealth management for tech-savvy investors and financial advisors alike.
