Robinhood Strategies FAQ
Robinhood Strategies is currently only available to Robinhood Gold members, but will be rolling out to all customers soon.
The management fee is 0.25% of the assets under management per year. You can think of the management fee as $2.50 for every $1,000 invested, per year. It’s calculated and charged as follows:
Also, Robinhood Gold members ($5 monthly subscription) only pay management fees on $100,000 of assets in their account. This means for every dollar over $100,000, the management fee is 0%.
Robinhood Strategies aims to ensure you have enough cash in your account to cover management fees. Other fees may apply to your account as outlined in Robinhood Financial’s Fee schedule. Keep in mind that if you choose to close your account, accrued management fees will be charged at the time of account closure.
Robinhood Strategies has a minimum investment requirement of $50. An account balance that is:
You can use the steps outlined in Asset transfers to transfer external assets in, Internal assets transfer (only in-kind assets), and in Deposit money into your Robinhood account or Wire transfers to deposit cash. Also, for retirement accounts, you can use the steps in Transfers and rollovers to rollover or transfer IRA assets in. Keep in mind, Instant deposits aren’t currently supported.
You can have 1 of each supported type of managed account, including an individual account, a traditional IRA, and a Roth IRA. Support for managed joint accounts is coming soon.
After initially funding your account, when the team will start working on your portfolio will depend on how you fund it.
After cash is received in any managed account or assets are received into a managed retirement account, the team will typically start working on your portfolio in 1-3 business days.
After assets are received in a managed taxable account, the team first checks for cost basis information, and will wait until receiving it before working on and rebalancing your portfolio.
The team purposefully doesn’t trade at market open to avoid higher volatility that tends to occur at that time.
After you are invested, the team will continuously monitor your portfolio and manage it dynamically. It’ll be updated when needed based on your investor profile, the team’s views, and the overall market conditions. At a minimum, all positions are evaluated monthly, through the quantitative part of our process. For more details, review our approach to investing.
Insights from our investment team about your portfolio, in light of market changes, will regularly be delivered to your account Investing page, so you’ll always know what’s going on. You’ll also get updates about portfolio changes.
No, you won’t be able to contact the team directly. However, you can contact support anytime with questions about your managed account and for support.
When you sign up for a managed account, you agree to delegate trading and investing discretion to Robinhood Strategies. Therefore, you cannot direct any trading in your managed account or directly change your portfolio. However, you can make changes to your investor profile with us, to align with any changes of your goals or preferences such as time horizon and risk tolerance, which may change your portfolio mix.
If you need to make changes to your goals or preferences, update the applicable information in your investor profile:
After you update your investor profile, it will be reviewed and changes may be made to your investments. If we do make changes, your portfolio will update within 1-2 business days.
Coming soon, you’ll also be able to adjust your investor profile within the Investing page for your managed account, scroll down to and select Adjust portfolio → Update investor profile to change your goals and preferences.
To ensure your investments remain relevant, make sure to keep your investor profile updated whenever your goals or preferences change. We will send you a reminder to review your account on an annual basis.
Yes, as a Robinhood Strategies client, you can contact support to request that your account be restricted from investing or trading a specific security that you do not want to or cannot own. Typically, up to 3 single stocks can be restricted. Note that you can only ask to restrict stocks that are tradeable with Robinhood. Other requests will be reviewed by the team before confirming if they can be honored. Also note, restrictions of broad index ETFs may not be accepted.
Coming soon, you’ll also be able to specify what stocks you don’t want your portfolio invested in:
Your account may be subject to separate restriction controls for stocks that you can’t hold or shares you can’t trade because, for example, you are an employee or board member of the issuer.
Yes, any cash held in your managed account will earn the brokerage cash sweep annual percentage yield (APY) that’s paid by program banks minus fees or charges paid to Robinhood Strategies’ affiliated cash sweep sponsors. The APY is 4%, as of Dec 27, 2024. The APY your cash earns is subject to change. Keep in mind, cash in managed accounts is generally kept to a minimum, which will likely be an average of about 0.5% of the account balance.
You can use the chart controls (upper right) on the Investing page to view each of the charts that depict aspects of your investment portfolio. This includes a performance line, portfolio chart, and return contribution bars. You can also select the timeline shown in the charts, such as for the day, week, month, quarter, or year. For details, review Robinhood Strategies charts.
The future projection feature is available within your managed account. This feature projects the future value of your portfolio within a range, by using Monte Carlo simulations based on your investment portfolio allocations. For details, check out Future projection.
No, your managed accounts won’t trade or hold any direct crypto at this time. However, the team may opportunistically invest in crypto ETFs.
No, managed IRAs will not receive a contribution match.
The team aims to consider the tax implications, such as short-term capital gains, when making trades or selling securities for cash withdrawals. For more details, review Tax aware investing.
For tax reporting purposes, you’ll get a Form 1099 for your individual managed account, which will be included in your Consolidated 1099 from Robinhood. For details, review Taxes and forms.
You’ll get a Form 1099-R for any distributions from a managed IRA with Robinhood Strategies. You may also get a Form 5498 for contributions made into a managed IRA. For details, review Taxes and forms.
You can withdraw the entire balance minus any pending transfers, transactions, and accrued management fees for the current billing cycle. Note that if a cash withdrawal requires selling securities, the team will choose which securities to sell and ensure the remaining assets are appropriately invested. Once sales are settled, the cash will be transferred to the receiving account indicated at the time of the request.
You can also transfer some or all of your securities to another in-kind Robinhood account, or send them to an outside brokerage with ACATS out, less any accrued unpaid management fees. Keep in mind, you’ll need to keep a minimum account balance of $50 to keep your account open.
Yes, you can close your account at any time. Keep in mind, you’ll be charged any accrued management fee when you close your account.
Your portfolio may not be actively managed for a few reasons, including:
We may close your account if it’s inactive for more than 2 years. For details, review Managed account closure.
We keep your account safe in a number of different ways. Check out How you’re protected, our Security guarantee, and some Security best practices for more information.
You can expect routine or monthly trading activity within your managed accounts. The Robinhood Strategies investment team regularly monitors and evaluates your portfolio, and will dynamically adjust the investments in your managed accounts for you.
Check out Security best practices and How to identify and report scams, and then if you suspect unusual activity, contact us immediately.
All investments involve risk and loss of principal is possible. Keep in mind that while diversification may help spread risk it does not assure a profit, or protect against loss.
For additional information, including about fees and expenses, risks, and conflicts of interest, review the Robinhood Strategies Form ADV Part 2A and Form CRS.
Robinhood Asset Management, LLC (“Robinhood Strategies”) is an SEC-registered investment advisor. Robinhood Financial LLC (member SIPC) is a registered broker dealer. Robinhood Securities LLC (member SIPC) provides clearing services.
Robinhood Gold is a subscription-based membership program of premium services offered through Robinhood Gold, LLC. For details, refer to What’s Robinhood Gold.