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Robinhood Strategies Review
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Robo Accounts at Robinhood
Highlights:
• Through its subsidiary Robinhood Asset Management LLC, Robinhood now offers robo accounts.
• Robinhood calls its automated investing program Robinhood Strategies.
• A managed account with Robinhood has low fees and minimums.
Although it took some time, Robinhood finally offers investment-advisory accounts. Here are the full details:
Robo Accounts at Robinhood
Robinhood introduced a service called Robinhood Strategies. This is a newer robo program that provides automated
investing in a small mix of stocks and ETFs. A Strategy account is a managed account with very
little involvement from the account owner; all trades, investment selection, and asset allocation are handled
by a software program that also performs other functions, such as daily monitoring and portfolio
rebalancing.
If there are certain stocks you do not want to own, you can place up to 3 on a restricted list that
will keep Robinhood's computer program from buying them. For either stocks or ETFs, Robinhood's
automated system executes trades in fractional shares.
Robinhood's automated advisor is designed to be tax-smart, although tax-loss harvesting is not a
standard part of the system. Account holders can do tax-loss harvesting at the end of the year if
they want by using the robot's calculations.
To cover the managed account's advisory fee, Robinhood keeps a cash position of
roughly 1%. This cash is swept to FDIC-insured banks where it earns an APY of
3.35%.
It is not possible to turn off the FDIC sweep.
One feature absent from Robinhood's robo program is socially-responsible portfolios, which are available
at some competing robo firms. Another missing feature is Robinhood's IRA match. Although a brokerage IRA at
Robinhood is eligible for a contribution match, this feature is not available on a Strategy account.
A managed account with Robinhood Strategies can be opened as a Roth IRA, Traditional IRA, joint,
or individual account.
Robinhood Strategies Fees and Minimums
Although a brokerage account at Robinhood has no fees and no minimums, a managed account is a different
matter. Robinhood requires a $50 deposit to open a Strategy account. Robinhood Strategies account has
an annual management fee of 0.25%. Both of these figures are very competitive by industry standards.
And Gold customers get an even better arrangement. After reaching $100k in assets, the advisory fee drops
to 0.00% (for balances above that level).
To allow the algorithm to invest in stocks, an account balance of $500 is required.
Financial Planning
Robinhood Strategies is a lower-cost investment-advisory program. As such, it does not include a human
financial planner. This puts the robo program at a disadvantage compared with some other robo services, which have created hybrid automated-human investing programs.
Advice from Robinhood Strategies is limited to the purchase and sale of securities in the automated
account. There is no advice on deposits or withdrawals of funds or on other related matters.
Limited Margin
Every robo account opened through Robinhood Strategies is set up on a limited-margin basis. Margin is
used so the robot can buy and sell securities before trades have settled. There is no leveraged trading,
however.
Opening a Robo Account
As with any managed account, a questionnaire is required before a Strategy account can be opened. And
Robinhood does require an individual brokerage account, too.
Robinhood Promotion
Funding a Strategy Account
A Robinhood robo account can be funded using any of the transfer methods available to brokerage
customers at the firm, with the exception of instant deposits. A robo IRA can accept a rollover,
and it is possible to transfer in cash and securities.
Robinhood Robo Advisor Promo
New robo customers receive a 1% cash bonus on cash and securities they deposit into a Strategy account.
This special applies up to $50,000 for Gold members or $25,000 for non-Gold clients. That means a cash
bonus of up to $250 or $500.
Our Recommendations
Small Accounts: With a $50 minimum, Robinhood Strategies is an excellent choice for investors
with small amounts to deposit.
Mutual Funds: Although mutual funds are not available in a Robinhood managed account,
exchange-traded funds are the main investment vehicle and can serve as a substitute for mutual funds.
Beginners: A robo account is a good way to start investing.
Active Equity Trading: A brokerage account at Robinhood is a better choice than a robo account.
Retirement Planning & Long-Term Investing: A Strategy account can be opened as an IRA.
Robinhood Strategies Review Conclusion
We’re glad to see Robinhood roll out its new advisory program. Several features are missing,
though. Even so, the inclusion of stocks, which competitors generally do not offer, should be a major selling point.
Robinhood Promotion
Visit Robinhood Website
Updated on 3/25/2026.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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