Robinhood CEO wants the company to be more than a trading app. Here's how he plans to do it
Article excerpt
Robinhood made its name bringing commission-free stock trading to a generation of young investors. Now, it wants to manage their wealth as they get older and richer. The strategy advances Robinhood's goal of capturing more business from existing users, enabling the company to grow total revenue and profits faster than new users join its now-maturing platform. Wall Street is already seeing that strategy in action. While Robinhood's 28 million funded accounts at the end of the June quarter represented 7% year over year, the company's average revenue per user was up 24%. CEO Vlad Tenev laid out that strategy in an interview on CNBC's " Mad Money " that aired Friday, explaining how Robinhood uses trading to bring customers onto the platform before expanding those relationships into retirement accounts, financial advice and other wealth management services. "If you think about active traders as a part of our business, it's really the engine room and the foundation of our business," Tenev said. "The products that we build to serve traders allow us to acquire customers and get them into products that are perhaps a little bit less sexy, but long-term more important." Tenev pointed to retirement accounts as one example. The company offers subscribers to Robinhood Gold, its paid membership tier, a 3% match on eligible IRA retirement contributions. He said these accounts are more...
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It also acquired portfolio management platform TradePMR in February 2025 and this year began rolling out an advisor network connecting customers with registered investment advisors .
