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As Charles Schwab Corp. shares soar and Robinhood's crater, the mobile-first brokerage makes seminal move past its ‘casino' model and sells 'fiduciary' portfolios

Just days after the Menlo Park, Calif., firm nabbed ex-TDA star Steve Quirk to call shots, Robinhood announced it'll sell automated portfolio management and the fantasy of beating market.

Author Oisin Breen January 15, 2022 at 3:11 AM
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Brian Murphy

Brian Murphy

January 15, 2022 — 10:11 PM
Interesting move by Robinhood, but probably without much of a great follow-through with existing clients, but I suspect this is only the first step to offering an SEC robo-advice service that will directly compete with Betterment/Wealthfront; similar to what Schwab does as well. They're going to have to go that way as only 10 to maybe 25% of the "investing market" has interest in short-term trading. Funny that we still haven't seen anyone broadly rethinking what it is that the consumers needs when it comes to financial services - something that includes investments, but extends to other verticals. Of course, it necessitates rethinking of firm business models, but the opportunity is huge; and what I'm working on with Kivalia.

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March 29, 2022 at 7:19 PM

Robinhood gets 'brilliant' upper manager -- and a spare CEO -- by nabbing TD Ameritrade's ex-thinkorswim top exec, hopefully to throw a lifesaver to Robinhood's sinking stock

The Menlo Park, Calif., firm nabbed Steve Quirk as first-ever chief brokerage officer to 'bridge the gap between academia and reality.'

January 6, 2022 at 10:33 PM

Second Betterment exec departs as new CEO Sarah Levy orients to her first month on the job and is confronted by personnel matters

Chief operating officer Dustin Lucien is the latest to leave the New York City robo-advisor, one of at least eight positions open as it prepares a push across multiple business lines to ignite growth.

January 19, 2021 at 6:32 PM

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Mentioned in this article:

Betterment, LLC
Financial Planning Software
Top Executive: Jon Stein



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