Robinhood Promotion
Robinhood bonus link: Up to $200 in FREE stock + transfer fee reimbursement.
Open Robinhood Account
Robinhood Promotion Explained
The first thing that catches your eye about Robinhood is a free stock promo just for signing up (if you use a referral link). Once you open an account and deposit at least $10, Robinhood will randomly select a stock to be added to your portfolio. You must hold this stock for 2 days before you can sell it.
They lead off with big name stocks such as Microsoft, Apple, Visa or Johnson & Johnson to catch your eye, but what they don’t tell you is that you have a slim chance of receiving a Fortune 500 type stock. You have a 1% chance to earn a free share valued at $50/share to $200/share. This also holds true for stocks priced at $10/share to $50/share. Instead, you are 98% more likely to earn a free share of stocks that have a $5.00/share to $10/share value.
Robinhood Referral Program
You may also receive a free stock when you refer another new user. After you sign up, you are given a referral code/link. The user must use your referral link in order for you to receive your next free stock, and the new user will also receive their free stock.
It is unlikely that you will become rich by referring other users to Robinhood, but if you have a large social media following or additional influence, the numbers can really start to add up. Once again, free is free, so take advantage of your referral link any time you can!
Robinhood Promo Free Stock Not Working? Check Terms & Conditions
Is your new account eligible for the free stock promotion? You must
have an approved account with no activity, or not have a Robinhood account and fulfil the conditions of the promotion. You must be signed up through a promotional code or advertisement in order to receive your free stock, and the bonus may not exceed more than $500 per household during the current calendar year.
You are not eligible if you or a member of your household are associated with Robinhood or any of
their affiliates (this includes people such as employees or contractors of Robinhood).
If all criteria is met, Robinhood will randomly choose a stock for you to be added to your portfolio. Robinhood has also stated they reserve the right to terminate this promotion, or change the terms at any given time.
Read Robinhood Stock Trading Review »
What is Robinhood? Robinhood is a commission free brokerage firm where you can buy and sell shares of U.S. stocks, Exchange Traded Funds (ETF’s) and Cryptocurrency. The firm provides a couple eye catching promotions for new users. When you open a brokerage account on Robinhood, you are offered a free stock. If you are new to investing and don’t have a ton of money to invest with Robinhood may be the firm for you.
When opening an account, you only need to deposit a minimum of $10. Robinhood has only been around since 2013. The company was founded by two men by the names of Vladimir Tanev and Baiju Bahat. In this short amount of time, they have managed to accumulate over 20,000,000 users. You may ask yourself how they were able to do this so quickly? The answer is only one word: free.
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How Does Robinhood Make Money?
Another way Robinhood has brought in users is by offering commission free trading. Unlike many other brokerage firms, you are not charged a transaction fee when buying or selling stocks through their app or website. One way Robinhood is able to offer this is by providing an upgrade to your account, which they call Robinhood Gold.
Robinhood Gold allows access to trading “after hours”, meaning even after the market closes you may still buy and sell stocks. They also grant you the option of investing up to double your cash. This gives you the ability to have a margin account, meaning you borrow money to invest and pay back later. Robinhood offers a 30 day free trial and then $5 monthly for those interested in Robinhood Gold.
Types of Robinhood Stocks
What kind of Stocks does Robinhood offer? Essentially every stock you can think of If you have an idea of what kind of companies you want to invest in, Robinhood has them divided into categories. You can buy shares in Pharma, Healthcare, Entertainment, Cannabis, Agriculture, Real Estate and many others. You are able to see the 100 most popular stocks on Robinhood, and the top 20 movers in terms of percentage gain/loss for the day. Some of these include companies like Tesla, AMC Entertainment, Ford, Disney, Amazon and Netflix.
Can I Buy OTC Stocks on Robinhood?
Robinhood does not allow OTC stocks to be traded on their brokerage platform. OTC stocks (Over-the-Counter), are securities that are still available to trade, but may not have met the requirements to be traded on a centralized exchange (like the New York Stock Exchange). Many investors want access to OTC stocks because of the low share pricing associated with many companies (sometimes under a penny), so they can own a significant amount of shares and see massive profits if the company takes off.
Should You Open a Robinhood Account?
While free is still free, you may ask yourself is it really worth opening an account. If you plan on opening an account just for the free stocks, you may want to think again. Unless you refer everyone you know to Robinhood and they create accounts too, you are likely to only get a couple freebies.You need to have money to make money in the investing world, and a couple of free stocks are not going to be your ticket to financial freedom.
However, if you are someone who is interested in investing and don’t know where to start, Robinhood may be the Brokerage firm for you. Robinhood is recommended by many as a starter brokerage platform, especially if you are young and don’t have much to invest. A few reasons being that:
It takes only a $10 deposit to start your account and it is commission free.
It takes no more than 10 minutes to create your account.
You get a free stock just by signing up
The only info needed is your name, address, and email. If you plan on investing immediately, you will need your routing and account number from your bank. You can create your account directly from your phone, and the process is fairly simple.
So, should you open a Robinhood account? The answer ultimately depends on your investing experience, and your overall financial goals. If you are new to investing and want an easy-to-use platform that is commission free, Robinhood may be the platform for you. If you are an experienced trader looking for a platform that offers advanced insight into market trends, you may be better off looking elsewhere.
Robinhood Bonus
Up to $200 in FREE stock + transfer fee reimbursement.
Open Robinhood Account
Robinhood Promotion Disclaimer
Current Robinhood promotion offer incentive details to open new account could change at any time without notice.
Arthur Chachuna is professional personal finance blogger, and the owner of Brokerage-Review.com.
He has been an avid investor for 23 years, and has background in both applied math and programming.
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