Robinhood's new tool lets you share or hide trades from family members
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Robinhood rolled out new products to let families manage money together on the platform, including a feature that allows users to share or not share certain accounts — which could include prediction trades or other investments — from other family members.
Why it matters: Robinhood says prediction markets are its fastest-growing business ever.
Driving the news: Robinhood's new family hub tool lets users invite other adults to join and view selected accounts.
- The original user gets to choose which accounts are viewable by other people joining and they can choose which accounts — if any — their family members can control.
- In a demo shared with Axios, Robinhood showed a mock account for CEO Vlad Tenev. The hub asks "which accounts should be visible to Celina?" referring to Tenev's wife. He can then select whether accounts like predictions, long-term allocation, or his 401(k) are visible to her.
- Family members will not know which accounts have been hidden from them, the company told Axios.
Between the lines: The benefit for those who lean into transparency is the clarity on allocation. If you share all your stock trades as a family, it's easier to see if you're over-allocated to tech stocks, for example.
- Robinhood built this platform for "any family setup" and will leave "those more tricky financial conversations in a family for them to have amongst themselves," Abhishek Fatehpuria, VP of product at Robinhood told Axios.
- Families routinely have separate personal accounts for things like spending, he added.
Before this, Robinhood didn't offer a built-in way to selectively share trading activity with family members.
- On a traditional brokerage account, you could also choose to share or hide allocation by having both joint and individual accounts.
Zoom out: Robinhood says its median customer is now in their mid 30s, and is set to receive a windfall of cash through the great wealth transfer.
- The company hopes to push millennials to start thinking about their finances family-style rather than independently.
- "Our customers are getting wealthier... They love the interface... Hopefully, as part of that, we can also broaden our appeal," Fatehpuria told Axios.
Zoom in: Robinhood Strategies, the firm's digital advisory service, is also getting updated, with more assistance on tax-advantaged strategies and a returns hub that helps users track performance.
- New trust and custodial accounts allow customers to manage estate planning or invest on behalf of a minor.
The bottom line: Robinhood keeps looking more and less like a traditional brokerage.
