Robinhood strengthens advisory services with $300 million TradePMR acquisition

Robinhood has announced its acquisition of TradePMR, a portfolio management platform, in a cash-and-stock deal valued at approximately $300 million. This move marks a strategic step in Robinhood’s transformation into a comprehensive financial services provider, directly challenging traditional brokerage giants like Charles Schwab and Fidelity Investments.

The acquisition is expected to close in the first half of 2025, enabling Robinhood to integrate TradePMR’s expertise in connecting investors with registered investment advisers (RIAs). RIAs, who oversee client portfolios in a fiduciary capacity, are a cornerstone of the $7 trillion advisory industry. TradePMR brings over $40 billion in assets under management to the table, significantly enhancing Robinhood’s capabilities in catering to a growing, tech-savvy generation of investors.

Robinhood’s recent initiatives have showcased its ambition to go beyond retail trading. In 2024 alone, the company has introduced a credit card, launched a desktop trading platform, and expanded into futures and index options trading. Additionally, Robinhood rolled out contracts for betting on the U.S. presidential election, further diversifying its offerings.

This flurry of activity has been met with enthusiasm from the market, with Robinhood’s shares climbing nearly 175% in 2024. The TradePMR acquisition is expected to add another layer of innovation, as it focuses on bridging the gap between individual investors and professional advisers.

“Robinhood’s client base represents the next generation of investors,” said Robb Baldwin, founder and CEO of TradePMR. “This acquisition allows us to create a multi-generational platform that will introduce financial advisers to these investors, fostering long-term growth.”

By integrating TradePMR’s technology and network, Robinhood aims to position itself as a leader in advisory services, offering its clients access to personalized financial guidance. Citi served as Robinhood’s financial adviser for the deal, while Lazard advised TradePMR.