PANews reported on November 19 that Robinhood Markets Inc. has agreed to acquire TradePMR, a custody and portfolio management platform for registered investment advisors. This move aims to attract a broader group of affluent investors. Robinhood stated in a press release that the deal, involving approximately $300 million in cash and stock, is expected to be completed in the first half of next year. Through this acquisition, TradePMR's registered investment advisors will be able to reach Robinhood's clients, who will also be able to easily connect with registered investment advisors (RIA). TradePMR is based in Gainesville, Florida, and manages over $40 billion in assets. According to the statement, the TradePMR team will join Robinhood.
Robinhood is expanding its product range in the competitive retail investing space by increasing the available cryptocurrencies, launching credit cards, and even offering traders the option to bet on election outcomes. It is also targeting clients with more stable wealth levels, trying to challenge traditional giants like Charles Schwab Corp. and Fidelity Investments in the rapidly growing wealth management sector.