In a related development, Robinhood has added a prediction markets hub to its app, allowing users to trade on event outcomes like Federal Reserve rates and NCAA tournament winners. This move has drawn scrutiny from Massachusetts’ securities regulator, who has subpoenaed the company’s marketing materials and user data related to college sports event contracts. The regulator criticized the hub as a gimmick to distract investors from sound investing practices. Meanwhile, Robinhood is collaborating with the Commodity Futures Trading Commission on projects involving futures, derivatives, and crypto markets.
Key takeaways:
- Robinhood has launched "Robinhood Strategies," a wealth management service for its Gold customers, with a 0.25% annual fee capped at $250.
- The company plans to introduce "Robinhood Banking" for Gold members later this year and "Robinhood Cortex," an AI-powered investment tool, in 2025.
- The launch highlights a growing demand for professional financial advice among retail traders, aiming to democratize wealth management beyond the ultra-wealthy.
- Massachusetts' securities regulator has subpoenaed Robinhood's marketing materials related to its new prediction markets hub, criticizing it as a gimmick.