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Robinhood Strategies Review (2025)
Does Robinhood have a robo-advisor service? Is Robinhood Strategies good and worth it?
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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 a while, Robinhood finally has investment-advisory accounts. Here's the full scoop:
Robo Accounts at Robinhood
In early 2025, Robinhood launched Robinhood Strategies. This is a new robo program that offers automated
trading in a small selection of stocks and ETFs. A Strategy account is a managed account without
much input from the account owner; all trades, investment selection, and asset allocation are performed
by a software program that also carries out other tasks, such as daily monitoring and portfolio
rebalancing.
If there are specific stocks you don't want to invest in, you can add up to 3 to a restricted list that
will prevent Robinhood's computer program from buying them. For either stocks or ETFs, Robinhood's
automated system places trades in fractional shares.
Robinhood's automated advisor is a tax-smart advisor, although tax-loss harvesting is not a
regular part of the system. Account holders can perform tax-loss harvesting at the end of the year if
they wish using the robot's calculations.
In order to pay the managed account's required advisory fee, Robinhood maintains a cash position of
roughly 1%. This cash is swept to FDIC-insured banks where it earns an APY of
4%.
It is not possible to turn off the FDIC sweep.
One feature missing in Robinhood's robo program is socially-responsible portfolios, which are available
at some robo competitors. Another feature missing is Robinhood's IRA match. Although a brokerage IRA at
Robinhood is eligible for a contribution match, this feature is unavailable on a Strategy account.
An advisory 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
story. Robinhood requires a $50 deposit to open a Strategy account. Robinhood Strategies account has
management fee of 0.25%. Both of these numbers are very good based on industry standards.
And Gold customers get an even better deal. After reaching $100k in assets, the advisory fee drops
to 0.00% (for balances above that level).
To enable the algorithm to invest in stocks, an account balance of $500 is required.
Financial Planning
Robinhood Strategies is a discount investment-advisory program. As such, it does not come with a human
financial planner. This omission puts the robo program at a disadvantage compared to some other robo offerings out there, which have created hybrid automated-human investing services.
Advice from Robinhood Strategies is limited to the purchase and sale of securities in the automated
account. There is no advice as to the deposit or withdrawal of funds or other related topics.
Limited Margin
Every robo account opened through Robinhood Strategies is set up on a limited-margin basis. Margin is
used so that the robot can buy and sell securities before trades have settled. There is no trading with
leverage, 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
Visit Robinhood Website
Funding a Strategy Account
A Robinhood robo account can be funded with any of the available transfer methods that brokerage
customers with the firm have (with the exception of instant deposits). A robo IRA can accept a rollover,
and it's possible to transfer in cash and securities.
Robinhood Robo Advisor Promo
New robo customers get a 1% cash bonus on cash and securities they deposit into a Strategy account.
This special is valid up to $50,000 (for Gold members) or $25,000 (for non-Gold clients). That's a cash
bonus 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 primary investment vehicle and they can substitute for mutual funds.
Beginners: Robo account is a good way to begin investing.
Active Equity Trading: A brokerage account at Robinhood is a better idea 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 launch its new advisory program. There are several features missing,
though. Nevertheless, the inclusion of stocks (which competitors don't offer) should be a big selling point.
Robinhood Promotion
Visit Robinhood Website
Updated on 4/15/2025.
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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