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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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Co-founder Baiju Bhatt exits management, but Deepak Rao is just getting started as CEO Vlad Tenev goes all in on making Robinhood a credit card company.

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July 26, 2023 at 2:34 AM

Robinhood shares spike 25% after CEO Vlad Tenev finally goes back on the attack against Acorns, Fidelity, and Schwabitrade by adding their tricks and features to its quiver

Semi-commoditized by giants and upstarts alike, the Menlo Park, Calif. firm is extending trading hours and doing its own Acorns-style round-up debit card to show it's in the fight.

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

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Mentioned in this article:

Betterment, LLC
Financial Planning Software
Top Executive: Jon Stein



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