Robinhood plans to acquire custodial and portfolio management firm TradePMR. The California-based commission-free investing firm entered into an agreement to buy the company, which targets Registered Investment Advisors (RIA), an important segment in the wealth management services space.

A $7 Trillion Industry

According to Robinhood, the RIA market represents one of the fastest-growing sectors in wealth management, currently valued at over $7 trillion. With this acquisition , Robinhood now plans to bridge the gap between tech-savvy retail investors and fiduciary advisors who can provide customized financial guidance.

TradePMR has reportedly established a network of 350 firms and decades of experience in RIA custodial services. Robinhood aims to benefit from this by establishing a good foundation to build its new advisory capabilities.

Commenting about the planned acquisition, Vlad Tenev, the Chairman and CEO at Robinhood, said: “The TradePMR team has one of the strongest RIA networks in the industry. We’re excited to join forces to build a category-defining advisory platform for the next generation.”

With TradePMR’s expertise, Robinhood also plans to integrate managed assets and self-directed investments into a single platform. The company estimates that it will inherit an estimated $84 trillion in wealth over the coming decades.

Enhancing Access for Advisors

Additionally, Robinhood and TradePMR aim to create a referral program that connects fiduciary advisors to Robinhood's customers. This collaboration seeks to help advisors grow their businesses and offer Robinhood users easier access to professional financial advice.

The acquisition deal, valued at approximately $300 million in cash and stock, is expected to close in the first half of 2025, pending regulatory approval. By acquiring TradePMR, Robinhood will diversify beyond self-directed trading to cater to evolving customer needs with wealth management solutions.

“For many years, the advisor industry has discussed the issue of losing customers when assets transition to a spouse or to heirs,” added Robb Baldwin, Founder and CEO at TradePMR. “Robinhood’s client base is the next generation of investors. We believe this acquisition allows us to build a multi-generational platform that will help introduce financial advisors to this next generation.”

According to the official announcement, Robb and the TradePMR team will join Robinhood. TradePMR is a privately held brokerage and custodian services provider based in Gainesville City, Florida.