Robinhood has announced that it is piloting a new advisor marketplace designed to connect eligible customers with independent RIAs directly within the Robinhood app.
The Network will be exclusively open to financial advisors working with TradePMR. Robinhood acquired TradePMR last February.
"Interested customers with at least $250,000 in investable assets will complete a short questionnaire, browse a curated list of at least three vetted independent advisors, and schedule an introductory call — all within the Robinhood app," TradePMR said in a statement.
The pilot is intentionally limited and will be used to validate experience quality, advisor integration and customer demand, according to the firms.
Robinhood said that it plans to "continue refining the program throughout 2026," with a broader launch expected in Q2 2026. "As the program evolves, advisor-managed portfolios are expected to appear directly within the Robinhood app as part of a more integrated experience," TradePMR said.
Referral Fees
There is no direct client fee to access the network, according to a brochure filed with the Securities and Exchange Commission. Instead, those who choose to work with a third-party advisor will pay them directly.
Instead, Robinhood Asset Management "receives 25% of all revenue derived by the Third-Party Advisory Firm or Third-Party Advisor, as applicable, from having referred Interested Persons as clients."
Each firm that stops using the referral service will also pay "a one-time fee equal to four times the revenue it or its Third Party Advisors, as applicable, received from all Interested Persons for the preceding 12-month period," the form states. "This fee could incentivize Third-Party Advisory Firms to continue participating in the Service and, therefore, continue using the TradePMR Platform."
Popular planner and blogger Michael Kitces posted on X: "If I'm reading this correctly, it means that on top of the 25% rev-share back to Robinhood, firms would effectively have to 'buy' the client away from Robinhood for 4X revenue if the firm ever wants to leave Robinhood (and thus leave the referral program)?
"On the one hand, I get that Robinhood (or any custodian) doesn't want to refer clients for a rev-share and then have the advisor leave after just a year or few and keep the remainder of the client's lifetime relationship. That's not a healthy incentive. But... paying 4X revenue is more than the valuation of that revenue for most advisory firms in the first place (especially if they're only keeping 75% of the revenue because 25% of it is already paid back to Robinhood as a rev-share)? Which would seem to effectively 'bind' the firm to Robinhood indefinitely, or be compelled to 'buy out' their Robinhood referrals relationship for more than the enterprise value of that client to the firm in the first place?"
The Network is operated by Robinhood Asset Management with TradePMR providing advisor technology via the Fusion platform and due diligence support. Advisors remain fully responsible for advice and asset management.
The Robinhood news comes on the heels of robo-advisor Betterment announcing an advisor referral program in mid-February.
Credit: Shutterstock
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.