Robinhood launches Trump Accounts for children in 2026 partnership

Robinhood is generating revenue from Trump Accounts, a long-term investing platform for American children that launched July 7.

Robinhood launched a long-term investing platform called Trump Accounts on July 7, designed to give American children a head start in investing, with Chief Executive Officer Vlad Tenev confirming the company generates revenue from the program.

"We do generate revenue from this," Tenev said on Fox Business's The Claman Countdown, without disclosing the specific fee structure or revenue-sharing terms of the partnership with the Trump organization.

The Trump Accounts program targets families looking to establish long-term investment portfolios for children, tapping into the Trump family brand appeal. Robinhood is expanding beyond its core trading platform into the children's long-term investing segment, a market that includes competitors such as Fidelity's Youth Account and Charles Schwab's custodial accounts.

The partnership could drive new user growth and assets under management for Robinhood by attracting a demographic that may not have previously used the platform. The association with a high-profile political figure may also attract regulatory scrutiny but could boost retail investor confidence among certain demographics.

Robinhood's move into children's long-term investing places it in direct competition with established players. Fidelity's Youth Account, launched in 2021, allows teenagers aged 13 to 17 to trade stocks and ETFs with parental oversight, while Charles Schwab and Vanguard offer custodial accounts that parents manage until children reach adulthood. Robinhood's Trump Accounts differentiate through the brand association and a focus on long-term investing rather than active trading.

The revenue model remains unclear. Tenev did not disclose whether Robinhood charges management fees, trading commissions, or takes a percentage of assets under management. Traditional custodial accounts typically charge no fees beyond the underlying fund expense ratios, while robo-advisors for minors often levy annual advisory fees of 0.25% to 0.50% of assets.

For Robinhood, the Trump Accounts program represents a strategic expansion beyond its core day-trading user base. The company has been diversifying its revenue streams through retirement accounts, credit cards, and now children's investing. The partnership with the Trump brand could accelerate user acquisition among conservative-leaning families.

The regulatory landscape adds uncertainty. Children's investing accounts face oversight from state securities regulators and the Securities and Exchange Commission, particularly regarding marketing practices and fee disclosures. Any partnership involving a former president's brand could invite additional scrutiny from Democratic lawmakers and consumer advocacy groups.

This article is for informational purposes only and does not constitute investment advice.