The world of online investing is evolving each day as established institutions compete with digital disruptors for customers—which is fantastic news for investors.
Lower fees, better tools, and free shares of stock are just a few of the benefits that people are getting as a result of this battle for market share.
Free stock? Yes, you read that correctly. One of the fastest growing online investing platforms is offering a share of free stock to new customers. How awesome is that?
Free Robinhood Stock
Robinhood is an online investing platform where you can trade stocks, ETFs, and cryptocurrencies for free. The company has quickly gained momentum due to its low-cost structure and sleek, user-friendly app.
Recently, the company started offering a game-changing incentive for new customers: free stock. If this sounds too good to be true, you wouldn’t be the only one to think so.
Keep reading to learn the ins and outs of how to get free stock on Robinhood. I’m going to talk about the type of stock you can (and can’t) get, what it takes to qualify, and more.
Let’s dive into one of the more exciting investment incentives that I’ve seen in the five years since starting Millennial Money.
Overview of Robinhood
Robinhood was founded in 2013 with the goal of minimizing fees and streamlining investing for a growing millennial market. The company is headquartered in Silicon Valley, and its tech-driven platform has quickly attracted over 10 million customers in a few short years.
On their flagship platform, Robinhood Financial, you can trade stocks, ETFs, and fractional shares for free. If cryptos are your thing, you can trade coins like Bitcoin, Ethereum, Dogecoin, and Litecoin for free on Robinhood Crypto.
More experienced traders can upgrade to a Robinhood Gold account, which gets you instant access to your deposits, access to level II market data, and margin trading for $5/month.
To say that Robinhood is a disruptor would be an understatement. As a result of their no-fee platform—and the momentum they’ve gained because of it—nearly every major brokerage firm has followed suit and abolished fees on stock trading.
I’m talking about some of the largest brokerage firms in the world, including Schwab, Interactive Brokers, Fidelity and E*TRADE, which have eliminated fees on trades. That’s a big deal, and we should all be grateful!
Learn More: Read our full Robinhood Review.
How To Get Free Stock On Robinhood
Robinhood is offering free stock to new customers. Here’s a breakdown of how the Robinhood free stock program works:
New Customers Only
This promotion is available to new customers only.
Random Value
Once you are approved and link your bank account, you’ll earn a specified dollar amount. Their website suggests a range of $5.00 to $200. They also mention that there is approximately a “98% chance of the stock bonus having a value of $5.00 to $10.”
Stock Selection
You will be able to pick your gift stock from a list of 18 of America’s leading companies.
Fractional Shares
You can use the cash value toward fractional shares of the companies offered.
You can also get additional free shares of stock by referring friends (more on that later). Most likely, you’ll get a low-value stock, but there is a slight chance you’ll get a share of Apple, Facebook, or Microsoft.
Two-Day Hold Period
You can trade or sell your new stock three trading days after it posts to your account, which is pretty cool.
Who Qualifies for Free Robinhood Stock?
To qualify for free Robinhood stock, you must meet one or all of the following conditions:
- You must be a new Robinhood account holder who hasn’t previously registered an account.
- Existing account holders with no activity yet in their account may still qualify.
- If you’re already an account holder and have already added funds in your account or made a trade, you cannot qualify for this promotion.
- To qualify, you must sign up through a recent link (find ours below) that contains the current promotion.
Getting Started
To get started, click on the Sign-Up button in the middle or top right-hand corner of your screen.
On the next screen, enter your first name, last name, email, and password.
Then, enter your home address and phone number.
After that, enter your Social Security number, date of birth, citizenship status, employment status, and marital status. (These items are required by law to open up any new financial account.) You’ll also be asked about your investing experience and how many dependents you have.
Interesting fact: If you say “I know what I’m doing” or “I’m an expert” under the Investment experience drop-down menu, they’ll ask if you’re interested in options trading. If you have little-to-no investing experience, the options question doesn’t appear.
Now, it’s time to link your bank account so you can transfer funds and start investing.
You’re almost there! In standard form, the final step requires you to confirm that all the information you’ve entered is honest and accurate. After reviewing the terms, click Submit Application, and you’re good to go!
When it’s all said and done, it shouldn’t take you more than a few minutes to register your account. Once you’re approved, and connect your bank account, the free gift stock amount should appear in your account within one week.
Want More Free Stock? Invite Your Friends
Robinhood is also offering free stock to both you and any referral that you bring on, up to $500 in value each year. Here’s how it works.
Inside the app, click the “Invite Friends, Get Free Stock” card. Then, invite your contacts that you think might be interested. Once they’ve signed up and their account is approved, you’ll be able to claim an additional free stock. It’s that easy.
Is Robinhood’s Free Stock Promotion Worth it?
Honestly, this is a tough call. As I mentioned before, there’s a 98% chance that your gift stock value will be worth $5 to $10. Sure, it’s nice to get a little kickback when signing up for a new financial account. But in my opinion, those dollar amounts aren’t exactly going to move the needle.
I think the more pertinent question here is this: Is Robinhood the right type of investment platform for you? Let’s take a closer look at some important considerations:
- Robinhood is a pioneer in the investment world of free trading. Thanks to their aggressive, fee-free approach, much larger institutions have been forced to follow suit and offer free trades as well.
- The Robinhood app is one of the best I’ve seen. And the masses agree. This investment app has over 1.5 million reviews in the App Store and a 4.8-star rating, which is just crazy.
- Robinhood is still a startup. If you’re looking for the type of company that you can call up and build a relationship with an investment advisor, Robinhood is not where you want to turn. They have a robust self-service customer support platform. But that means you’ll be sending an email to someone that you don’t know when you need help. For some investors, though, that’s completely okay.
Should You Invest with Robinhood For Free Stock?
With any investment you make, it’s important to look at the bigger picture and not get distracted by shiny promotions. I’m not saying that Robinhood’s free stock program is a gimmick. But it does seem obvious that the promotion is designed to attract as many new investors as they can.
To be clear, experienced investors are probably not jumping at a $5 to $10 sign-up bonus. At the same time, if you’ve been on the fence about opening your first brokerage account, this might be a reason to send your business to Robinhood.
I’m a huge proponent of investing in the market—and in funds that you understand. If Robinhood makes sense for your investment strategy, it can’t hurt to pick up a free stock along the way as you get started.
If you decide to take the plunge, I hope you’re one of the lucky ones hit it big. Good luck!
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