Robinhood is introducing wealth management and private banking services to cater to investors with smaller portfolios, aiming to have a greater impact on their financial behaviors. They have announced the launch of 'Robinhood Strategies,' a wealth management offering with a 0.25% annual fee, up to $250, for their premium 'Gold' members. This service allows users with at least $50 in investments to access portfolios of exchange-traded funds managed by Robinhood's investment specialists. Investing a minimum of $500 will provide access to individual stocks within the portfolios.

This initiative reflects the rising interest among retail traders for professional financial guidance, viewing investing as a strategic means to wealth accumulation and financial security rather than simply a pastime. A survey by Betterment revealed that retail investors with financial advisors exhibit greater confidence in their financial situations.

Steph Guild, President of Robinhood Asset Management and a former JPMorgan Chase executive, believes that this new service could democratize personalized wealth management, traditionally exclusive to high-net-worth clients. Additionally, an AI investment tool is set to be introduced later in 2025 to offer real-time market analysis and insights.

Robinhood will also introduce a private banking product for Gold members later this year, featuring estate planning, tax guidance, and exclusive benefits like tickets to events such as the Met Gala and the Oscars. Catering to users' desire for premium services could drive the adoption of the Gold subscription, which costs $5 per month or $50 yearly. This strategy aligns with Robinhood's goal of democratizing access to services typically reserved for the affluent, targeting a broader user base.Robinhood's shares have experienced a 29% increase this year, contrasting with the Nasdaq composite index, which has declined by 5.4%.