Robinhood’s evolution from a commission-free trading app to a more expansive financial services platform has taken another step forward, and this time, the target is independent financial advisors. Through its TradePMR subsidiary, Robinhood is launching a first-of-its-kind incentive program designed to help RIAs attract new clients and deepen existing relationships by offering something both simple and compelling: cash matches on client deposits.
Beginning October 1, 2025, and running through March 31, 2026, TradePMR advisors will be able to offer their clients a 50 basis point (0.5%) cash match on eligible deposits into TradePMR custody accounts. The credit will be deposited directly into the client’s account and treated as taxable income—categorized as either interest or miscellaneous income. The goal, according to the firm, is to make life easier for RIAs who are trying to differentiate themselves in a competitive marketplace and highlight TradePMR’s commitment to building an advisor-first platform.
For many wealth advisors, this represents a new type of tool in the client acquisition and retention toolkit. Incentive-based deposit programs are not uncommon in direct-to-consumer financial services, but they have never been rolled out at scale for the independent advisor community. Robb Baldwin, founder and general manager of TradePMR, frames it as a way for advisors to lean on Robinhood’s balance sheet to strengthen their own value proposition. “We want to send a strong message that Robinhood is fully behind the human advisor and committed to providing RIAs the tools they need to compete,” Baldwin says.
A New Custody Landscape
TradePMR currently works with about 350 advisory firms and oversees $43 billion in assets on its custody platform. While those numbers pale in comparison to the giants—Charles Schwab, Fidelity, and Pershing—they underscore Robinhood’s ambitions in the custody space. The acquisition of TradePMR earlier this year gave Robinhood a foothold in a business that is notoriously difficult to penetrate. Custodian relationships tend to be sticky, with advisors reluctant to uproot systems, processes, and client accounts. At the same time, the rise of independent RIAs has attracted a new wave of custodial challengers, including Betterment and Altruist, which aim to chip away at the dominance of the incumbents.
The competitive intensity of the custody business means that innovation, pricing, and service differentiation matter. Historically, custodians have leaned on referral programs—matching self-directed investors with advisors on their platform—as a way to deliver value. Both Schwab and Fidelity have used such programs to funnel new prospects to affiliated RIAs. Baldwin confirms that Robinhood is working on building a similar pipeline for advisors custodying with TradePMR, with details expected later this year. If successful, the referral network combined with the deposit-match program could make TradePMR an increasingly attractive option for growth-minded RIAs.
Why Matching Programs Matter for RIAs
In the retail space, Robinhood has already proven that cash incentives can move assets. Since launching its matching program for self-directed investors in 2023, the firm has paid out about $530 million in matches. Those incentives helped grow platform assets to $304 billion by August 31, 2025. The terms typically require customers to keep assets at Robinhood for three to five years, creating stickiness that justifies the initial payout. Executives maintain the economics work because Robinhood avoids many of the overhead costs traditional firms carry, such as maintaining physical branches.
The leap to the advisor channel is significant because it shifts the incentive from an investor’s decision alone to one that an advisor can proactively present as part of their value stack. Advisors spend tremendous energy competing for high-quality prospects, and anything that reduces friction in the onboarding process or gives them an edge in conversion rates can materially affect growth. Baldwin notes that RIAs surveyed by TradePMR responded positively to the concept, suggesting it could become a differentiator in competitive pitches. Imagine an advisor sitting across from a prospect and being able to say: “If you bring $1 million here, you’ll receive a $5,000 match credited to your account.” That’s a tangible, immediate benefit layered on top of ongoing fiduciary advice.
Strategic Signaling
For Robinhood, this move is about more than just deposits—it’s a branding exercise in the RIA market. The independent advisory space is the fastest-growing channel in wealth management, attracting both wirehouse breakaways and entrepreneurial startups. Custodians that can demonstrate innovation, advisor-first thinking, and a willingness to invest in growth strategies are more likely to win mindshare. “We see this as a signal to the industry that we’re serious about building a home for advisors, not just investors,” Baldwin says.
The timing also matters. As fee compression and margin pressure continue to affect advisors, programs that provide clear economic advantages can strengthen client relationships while underscoring the value of professional guidance. For advisors positioning themselves against robo-advisors or direct platforms, the ability to offer institution-backed incentives provides both credibility and differentiation.
The Bigger Picture
The launch of this incentive program raises larger questions about how RIAs compete and grow in an environment where client expectations are shifting rapidly. Increasingly, clients are accustomed to promotional incentives in other financial products—think credit card sign-up bonuses, bank account rewards, and airline points. Translating that dynamic into the advisory relationship may normalize the concept of advisors leveraging institutional support to create client-facing benefits.
At the same time, advisors will need to carefully manage the optics. A match on deposits should complement, not overshadow, the core message of fiduciary advice and holistic planning. Used well, it becomes an on-ramp to deeper client engagement. Used poorly, it risks being perceived as a gimmick. Advisors considering participation will need to think through how to frame the match in the broader context of their value proposition, ensuring it aligns with their firm’s culture and client communication style.
Economics and Sustainability
Robinhood’s executives argue that the math works in their favor because of their low-cost structure. Without a legacy branch network and with technology infrastructure that supports scale, they believe the upfront costs of matches are recouped over time. For advisors, the calculus is simpler: they don’t bear the cost of the match, but they gain the benefit of a stronger client pitch and the potential for longer-lasting relationships. That asymmetry makes the program particularly attractive for independent advisors, who typically operate on thinner margins than large institutions.
Of course, advisors will want to know the fine print—what deposits qualify, how long clients need to keep assets in place, and how the credits are treated for tax purposes. TradePMR has stated that the match will be categorized as taxable income to the client, which advisors should be prepared to explain and integrate into financial planning discussions. Still, the overall structure appears straightforward and designed to minimize complexity for RIAs.
Looking Ahead
The next 18 months will serve as a test of whether incentives that have worked in retail brokerage can be successfully adapted to the advisor channel. If the program gains traction, it could spark further innovation in custody services, with competitors forced to respond. Advisors who adopt early may find themselves with a new tool that not only attracts clients but also positions them as forward-thinking professionals aligned with innovative custodians.
For RIAs, the takeaway is clear: the custodial marketplace is evolving, and programs like this may signal a broader shift toward custodians competing not just on service and technology but also on tangible, client-facing economics. Robinhood and TradePMR are betting that RIAs are ready to embrace these tools, and the coming months will reveal whether this is the start of a trend or a one-off experiment.
Either way, the message to independent advisors is unmistakable: custodians are listening, and the future of advisor support may include more direct contributions to client outcomes. For firms willing to integrate these programs thoughtfully, the opportunity to enhance growth, client satisfaction, and competitive positioning is real—and it’s available now.
