Robinhood Announces Strategies, Banking, And Cortex Products

At Robinhood Presents: The Lost City of Gold, Robinhood announced Robinhood Strategies, Robinhood Banking, and Robinhood Cortex, which is a suite of new features that will shape the future of wealth management. And with exclusive benefits for Robinhood Gold members, these products helps users access financial services such as private wealth management and private banking.

Robinhood Strategies

Robinhood Strategies is like a robo advisor as it aligns with your goals and delivers tailored and expert-managed portfolios directly in the app. Robinhood’s will deliver timely insights that help you understand how and why your money moves so you can invest with confidence. And with zero management fees on every dollar over $100k for Robinhood Gold members–meaning you never pay more than $250 a year–you’re getting the benefits of a private wealth management approach, without paying more to invest more.

The team behind Robinhood Strategies is maintained by a collective 50+ years of Wall Street experience managing both institutional and high net worth clients. And having learned first-hand what matters most to investors, their approach to advice and portfolio management reflects what we believe are the best ways to manage money: having a clear goal in mind, offering a strong foundation of diversified ETFs specific to your needs, adding single stocks that aim to take advantage of the biases of market participants, all while offering transparency along the way with market and portfolio updates.

Robinhood Strategies works as a wealth management service that gives you expert financial advice and the knowledge to effectively plan for your future. And Robinhood Strategies includes financial advice for everyone, offering:

— A 0.25% annual management fee for all customers with a yearly cap of only $250 for Robinhood Gold members. This means free management for Gold members on every dollar over $100k and an effective management fee of 0.1% for portfolios with $250k or 0.05% for those with $500k.

— Access to a diversified mix of both single stocks and ETFs based on risk tolerance, time horizon, and other factors we learn. The portfolios are actively managed to provide access to more opportunities.

— An interactive portfolio that shows performance over time and overall asset allocation, while letting you drill down into individual holdings, top returns drivers, and easily set up recurring investments.

— Timely market and portfolio insights, delivered in-app in writing and via audio recording, to give you the full context behind major market moves and portfolio adjustments.

— Simulated future returns with Monte Carlo simulations–all right in the app.

— More control, with the freedom to restrict a select number of stocks to help keep your portfolio aligned with your preferences.

— Tax advantages, by aiming to select tax lots to sell to minimize taxable gains, thoughtfully incorporating external assets transferred in, and incorporating turnover limits for taxable accounts.

— Help managing gains and losses. As the year ends, we’ll total your gains and losses so you can choose to harvest any losses.

— Managed individual and retirement accounts with support for joint accounts coming soon.

Robinhood Strategies is available now to all Robinhood Gold members, and will start rolling out to all customers in April. And for a limited time through May 30, Gold members can get a 1% transfer boost of up to $500 and non-Gold members can get a 1% deposit boost of up to $250.

Robinhood Gold members who fund their account by June 30 will get their first $1,000 deposited management-fee-free through the end of the year and non-Gold members who fund by June 30 will get their first $500 deposited management-fee-free.

Robinhood Banking 

Robinhood Banking is a platform launching later this year that will bring the private banking experience exclusively to Robinhood Gold members, offering access to traditional checking and savings accounts with luxury benefits. And you will be able to apply for an account right from your phone, send money across the world in 100+ currencies, and even get cash delivered directly to you. With Robinhood Banking you will:

— Receive 4.00% Annual Percentage Yield (APY) on your savings, which is about 9x the national average.

— Access private banking services like estate planning and professional tax advice.

— Get peace of mind with 24/7 support and up to $2.5 million in FDIC insurance.

— Access additional perks such as tickets to exclusive events like the Met Gala, Oscars, F1 Monaco Grand Prix, The Masters, and more, as well as private jet travel, global private chauffeurs, luxury helicopter rides, and members-only vacation clubs.

— Get cash delivered on-demand right to your doorstep, eliminating the need for an ATM (based on geographic location).

— Open accounts for the whole family – At launch Robinhood offers individual and joint checking and savings accounts, as well as children’s accounts with allowances and spending controls. And you will also get a debit Mastercard for speed, security, and safety.

— Move your money with ease using wires, checks, and international transfers. And get instant transfers between all of your Robinhood accounts.

— Track your net worth, step by step. And you can see the total value of all of your Robinhood accounts. You can even link external accounts to track across banks.

A year ago, Robinhood announced the Robinhood Gold Card, available exclusively for Robinhood Gold members. This has since rolled it out to more than 100k people, with the waitlist growing to nearly 3 million. And this week, Robinhood is rolling another 100,000 people off the waitlist to meet this growing demand.

Robinhood Banking will launch this fall at which point the Robinhood Credit Card app will become the banking app. And once available, your Robinhood credit card, checking, and savings will all live in one place.

Robinhood Cortex

Robinhood Cortex is an AI investment tool launching later this year that is designed for providing real-time analysis and insights that help you better navigate the markets, identify opportunities, and stay up to date on the latest market moving news.

This is just the beginning of how Robinhood will use AI to help power your investing experience at Robinhood. And at launch, Robinhood Cortex is designed to up-level your trading and investing experience supporting:

— Stock Digests: This helps you answer the age-old question of, “Why is this stock going up or down today?” With Robinhood Cortex, simply go to the stock detail page, and we will quickly generate a short summary of what’s happening in the world to impact that ticker.

— Trade Builder: It’s a tool designed to simplify the trading process and help you learn about new strategies that align with your goals. For example, it makes the options trading experience more intuitive by helping you translate your beliefs about a stock into a specific options trade and strategy. We’ll use Robinhood Cortex to show you insights about price signals, technicals, market news, analyst reports, and more, and then Trade Builder will screen the market for trades to consider based on your inputs.

Robinhood Cortex is not placing trades for you, but instead helps gather analysis and insights to inform your market outlook. And over time, we expect Robinhood Cortex to enhance other parts of the Robinhood experience, and we’ll have more details to share when it starts rolling out to Robinhood Gold members later this year.

KEY QUOTES:

“Our goal is for Robinhood to give you a world-class financial team in your pocket, with cutting-edge tools you can’t find elsewhere.”

– Vlad Tenev, Chairman and CEO, Robinhood

“When building Robinhood Strategies we realized the existing digital advisory model was broken, with limited features and fees that grow as you do better. We designed Robinhood Strategies to give everyone incredible service and low fees with a cap, meaning you don’t have to pay more to invest more.” 

– Steph Guild, President, Robinhood Asset Management & Senior Director of Investment Strategy, Robinhood Financial

“With Robinhood Banking, we’re trying to solve many of the challenges presented by legacy banks. Robinhood Banking is thoughtfully designed to be as easy to use as possible, while still delivering cutting edge features historically reserved for the ultra-wealthy. We’re pushing the boundaries of what you should expect from your bank.”

– Deepak Rao, GM and VP, Robinhood Money

“High quality, premium investment and market analysis has historically been reserved for institutional investors and the rich. Over time, Robinhood Cortex will completely transform the Robinhood experience as we strive to bridge that gap and put a premium research assistant right in your pocket.”

– Abhishek Fatehpuria, VP of Brokerage Product at Robinhood