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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.

Related Moves

June 29, 2024 at 3:00 AM

In 'forced-evolution,' Robinhood subtracts a co-founder and pivots to credit cards to create captive sales that dried up after its phone-app trading platform and zero-commission novelty act imploded

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.

March 29, 2024 at 5:02 AM

Biz Briefs: AdvicePay waives key hiring requirement to land its next CEO • ESG firms may get OK in Oklahoma • eMoney adds new chiefs • CFP Board names new chair-elect • Robinhood cuts more staff

Alan Moore replaces himself with another guy with two respectable titles • eMoney promotes two • Moisand's third in line now known • Robinhood sacks 173 in year-to-date.

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

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Betterment, LLC
Financial Planning Software
Top Executive: Jon Stein



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