Fee:
0.25% annually, capped at $250/year for Gold members
Minimum Investment:
$50 ($500 to include individual stocks)
Pros:
- Low management fee with Gold cap
- Human oversight plus automation
- Tax-loss harvesting and projections tool
- Supports Roth & Traditional IRAs
Cons:
- Limited account types
- IRAs excluded from Robinhood’s IRA match
- $500 minimum required for individual stocks
After completing a short questionnaire about financial goals and risk tolerance, the system builds a diversified portfolio of ETFs. Accounts with $500 or more can also include individual stocks.
The service provides ongoing monitoring, automatic rebalancing, tax-loss harvesting, and in-app explanations of investment decisions. It supports both taxable accounts and IRAs, with fee caps available for Robinhood Gold members.
What are the pros and cons of Robinhood Strategies?
When choosing any financial planning partner, you need to ensure they’re the right fit for you.
While Robinhood Strategies has numerous advantages, such as low fees and the ability to combine human and AI advice, it also has its drawbacks.
To help you decide if Robinhood Strategies is right for you, here is a breakdown of some of the key pros and cons.
Pros of Robinhood Strategies:
- Human and AI advice: Human oversight combined with algorithmic automation offers active management over passive robot models.
- Low management fee: 0.25% annually, with a $250/year fee cap for Robinhood Gold members.
- Stock inclusion: Accounts with $500 or more may include individual US stocks in addition to ETFs.
- Tax strategy: Robinhood Strategies incorporates tax-advantaged strategies, such as tax-loss harvesting, to minimize your taxable gains and set you up for long-term tax advantages.
- Future projections: It has a future projections tool that helps investors see the future value of their account.
- IRA support: Offers managed retirement accounts (Roth and Traditional IRAs).
Cons of Robinhood Strategies:
- Limited account types: No joint, custodial, or SEP IRA support.
- IRA match exclusion: Managed IRAs do not qualify for Robinhood's 1% or 3% IRA match.
- Stock inclusion threshold: Users must maintain at least $500 to include individual stocks.
How much does Robinhood Strategies cost?
Robinhood Strategies charges a flat 0.25% management fee.
Users who subscribe to Robinhood Gold can benefit from a $250 annual cap on this fee, making it more economical for larger account balances.
Investors also bear the cost of ETF expense ratios.
There are no trading commissions or account closure fees associated with the product.
Here is a breakdown of the fees and costs associated with Robinhood Strategies:
- Management fee: 0.25% of assets under management per year.
- Gold member cap: At most $250 per year (with a $50/year membership fee), as the management fee stops beyond $100,000 of assets
- ETF expense ratios: Investors also pay the internal costs of ETFs, which generally range from 0.06% to 0.10%.
- Gold membership fee: $5/month or $50/year (optional but required for capped fee).
What is Robinhood Strategies’ minimum account size?
- Minimum to open an account: $50
- Minimum to include stocks in portfolio: $500
To open an account with Robinhood Strategies, you are required to have a minimum of $50 in your account.
If you want to hold a mix of individual stocks and ETFs in your account, and specify which stocks you do and do not want, you need to have a minimum of $500 in your account.
These minimum requirements are similar to other robo-advisors on the market and are considerably lower than human financial advisors.
(Source: Robinhood client brochure)
Who should choose Robinhood Strategies?
Robinhood Strategies is suitable for investors who prefer a hands-off approach and are comfortable with algorithm-based portfolio construction.
It particularly benefits Robinhood Gold users with higher account balances, thanks to the capped annual fee.
The people who might be suitable could include:
- Hands-off investors
- Retirement investors
- Robinhood Gold members
However, the service may not be ideal for those who require personalized financial guidance or broader account type availability.
Robinhood Strategies: Is it secure?
When it comes to keeping your money safe, Robinhood Strategies has high security.
Robinhood accounts are held with Robinhood Financial LLC and Robinhood Securities, which FINRA and the SEC regulate.
Securities are protected by SIPC insurance, which is up to $500,000 (including $250,000 for cash).
For online security, the service boasts strong protection for its users.
The platform uses industry-standard encryption, two-factor authentication, and device verification for account security.
These measures help put your mind at ease, knowing your money and information will be protected.
(Source: Robinhood, How you're protected)
Robinhood Strategies: Customer service
Robinhood Strategies is noted for its high-quality customer service, which operates at a level that is relatively uncommon among robo-advisor services.
Customer support is available via chat 24/7 and by phone from 7:00 am to 9:00 pm Eastern Time.
Service quality may vary depending on inquiry volume, but the round-the-clock availability is notable among budget platforms.
Robinhood Strategies: Mobile app
Robinhood Strategies is accessed through the main Robinhood mobile app.
Within the app, users can view and manage their automated portfolios, track asset performance, and receive personalized investment explanations in both audio and text.
The app supports automatic rebalancing, tax-loss harvesting for taxable accounts, and Monte Carlo simulations for forecasting potential returns, all specifically tied to the Strategies product.
Robinhood Strategies reviews: What real customers are saying?
Reviews of Robinhood Strategies are still limited since it is a newer product, but early users share some consistent themes.
Customers highlight that the platform is simple to use and offers a straightforward way to build a diversified portfolio. They say the automated approach is easy to follow and the account setup process is smooth.
On Reddit, some users have shared that their Robinhood Strategies accounts showed positive early returns and that they find the service helpful for diversifying their investments. At the same time, many note that long-term performance and reliability remain to be seen.
Is Robinhood Strategies worth it?
For investors already comfortable with the Robinhood platform and looking for a simple robo-advisor solution, the Robinhood robo-advisor offers a cost-effective, transparent, and educational entry point into robo-advisory services.
Its affordability is a key advantage, particularly for Robinhood Gold users.
However, limited account types and a lack of specific human financial support may be drawbacks for some.
Robinhood Trading vs. Robinhood Strategies
Robinhood offers two distinct ways to invest. The Robinhood trading platform is designed for self-directed investors who want to buy and sell stocks, ETFs, options, and cryptocurrencies with no account minimums and commission-free trades. Robinhood Strategies, on the other hand, is the company’s robo-advisor service. It requires a $50 minimum to open an account, builds portfolios automatically based on your goals and risk tolerance, and charges a 0.25% annual fee (capped at $250 for Gold members).
| Feature | Robinhood Trading | Robinhood Strategies (Robo-advisor) |
|---|---|---|
| Account Minimum | $0 | $50 ($500 to include individual stocks) |
| Fees | Commission-free trading | 0.25% annual fee (capped at $250 for Gold members) |
| Control | Self-directed investing | Automated portfolio management |
| Assets Available | Stocks, ETFs, options, crypto | ETFs; + individual stocks with $500+ |
| Best For | Active traders & DIY investors | Hands-off investors & long-term planners |
If you prefer to take control of your trades, the trading app may be the better fit. But if you want automated portfolio management, our Robinhood Strategies review explains how it works in detail.
It’s important to note that Robinhood does not provide financial advisor services. If you’re looking for personalized, one-on-one advice, Unbiased can connect you with a financial advisor who fits your needs.