At Robinhood (NASDAQ:HOOD), they claim to be committed to making investing more accessible and transparent for everyone.
Robinhood Markets noted that this is why they’re introducing an important feature designed to help customers “manage their tax liabilities and give them flexibility when selling stocks” —Tax Lots.
As explained in a blog post by Robinhood Markets, Tax Lots allow customers to choose specific assets to sell—”whether it’s the ones held long term, the ones with the lowest or highest cost basis, or the ones that might have experienced the greatest loss.”
This gives customers the ability to make more “informed decisions and manage their tax bill.”
Steve Quirk, Chief Brokerage Officer at Robinhood said that at Robinhood, tthey are committed to making sure investors of “all levels have the tools and resources needed to manage their investments.”
Quirk added that with Tax Lots now available on Robinhood, customers “can make informed decisions with their portfolio.”
Tax Lots will be available to customers when they “make a trade on the Robinhood app.”
When using the feature, customers will be able to view the individual lots that make up their positions and “select which ones to sell when executing a trade.”
For instance, if you purchased 100 shares of a stock in two different transactions at varying prices, and you intended to then sell 50 shares, Robinhood now lets you “choose which lots to sell.”
Tax Lots are currently being rolled out and will be available to all customers in the coming weeks, according to the update from Robinhood Markets.
As covered, Robinhood acquired TradePMR, a registered investment advisor (RIA) with $40 billion in assets under administration based in Florida.
TradePMR is said to have “one of the strongest RIA networks in the industry.” The goal is customer acquisition, and the two companies plan to build a “best-in-class referral program.”
Robinhood believes that TradePMR will be able to tap into a new customer base via Robinhood, which will allow their clients to easily connect with an RIA.
An RIA is an entity that can manage an individual’s or institution’s money. It must be registered with the SEC and hold fiduciary responsibility, meaning it is required to put the interests of its customers first. TradePMR will also bring real people to the investment mix, combining it with their tech-first platform that includes both traditional securities as well as crypto.
