Robinhood is a brokerage firm pioneering zero-commission trading. As if that weren’t enough, it also offers new investors the opportunity to receive up to $1,700 in free stocks through a sign-up reward and referral bonuses. Robinhood’s competitive strategy can help new investors start their portfolios. In addition, accounts are insured by the U.S. government for up to $500,000, offering a sense of security.
With Robinhood, you can sign up for regular and retirement accounts. You can also get a 1% match on traditional or Roth IRA contributions.
Building a diversified investment portfolio with free stocks can give you the opportunity to expand market exposure and diversify your portfolio without initial capital costs. You’ll gain immediate value and growth potential. Read on to learn how to claim your Robinhood-free stock.
How to Get A Free Stock from Robinhood
Robinhood’s free stock promotion has been around in various forms for years. As of June 2024, to qualify, you’ll need to sign up for an account and make a deposit. Then you’ll get a free stock worth up to $200. For every friend you refer, you’ll also get a free share of a stock worth $5 to $200, and so will your friend.
As per its website, Robinhood notifies you when your stock is ready for claiming. You can also navigate to Messages for notifications about new claimable stocks under your Robinhood Rewards. To get the rewards, you’ll need to have an approved Robinhood investing account and link your bank account.
How to Receive Free Stocks
To receive free stocks with Robinhood, there are a few simple steps to take:
- Open an account by following Robinhood’s sign-up process from the homepage.
- Link your bank account to your Robinhood account.
- Transfer funds to your account. While some sources suggest at least $10, there’s no stated minimum, so start with what you want.
- Buy your first stock or investment on the stock market. You can also buy mutual funds, exchange-traded funds (ETFs), or other assets.
- Claim rewards when you receive a notification that your free stock is ready.
- Refer friends to keep earning more rewards.
If you regularly log in to Robinhood, the easiest way to claim your free stocks is to check the Rewards tab at the top of your Robinhood screen. There, you’ll see any rewards ready to claim, and you can also see past claimed rewards.
After the stock is transferred to your portfolio, you can hold it or sell it. Since Robinhood charges zero commission for U.S. stock, option, and crypto trading, you could also sell the stock and buy another stock you’ve been wanting.
One interesting point to note: you can pick your first stock or have Robinhood choose for you. If you pick your own, you’ll be given a choice of 20 companies and one week to choose your stock.
Since Robinhood allows fractional shares, you don’t have to choose a stock under the $200 limit. With additional rewards, Robinhood will automatically assign you a stock. While 99% of the rewards are worth $5, some are between $100 and $200.
If you decide to sell the free stock, you must wait three trading days after the reward is granted. You’ll also have to wait 30 days to withdraw the cash value after claiming the reward.
About Robinhood
Robinhood is a mobile and online brokerage trading platform with the mission to “democratize finance for all.”
The company was founded by two Stanford undergraduates, Vladimir Tenev and Baiju Bhatt. Robinhood, as the name evokes, was founded with the idea that the average person shouldn’t have to pay a commission for trading stocks when the major firms were charging hefty fees. .
Like Robinhood, they wanted to bring money into the hands of the average person. This led to the Robinhood platform, a financial tool that gives everyone affordable access to financial markets.
The commission-free online trading platform means that users can trade stocks for free. Whether you’re day trading or saving for retirement, Robinhood has offerings to fit your investment style, including asset tools and resources. Instead of depending on stock brokers, you can trade directly from your computer or phone.
There’s also a premium service called Gold, with additional features and benefits. For example, if you open a Roth or traditional IRA with Robinhood Gold, you could qualify for matching funds from Robinhood. Robinhood Gold offers a 30-day free trial, so you can try out the features and see if it’s a good fit. At just $5 a month, it offers a lot of value, including:
- Earn 5.25% APY on cash deposits.
- Protect your cash with FDIC protection through Robinhood’s partner banks.
- Earn up to 3% IRA matching funds if you meet the qualification requirement.
- Get research from financial analysts at Morningstar to take your investing to the next level.
- Get real-time market data.
- See bids and asks on securities with Level two market data from Nasdaq.
Why Robinhood is a Top Choice for Traders
Robinhood is a top choice for traders compared to its competitors because of the professional-level traditional tools with market data from Nasdaq and research from Morningstar. The zero-commission trading, ease of use, and impressive incentives also make it a popular choice.
Additionally, Robinhood’s 24-hour Market is the only place where traders can trade 24 hours a day, five days a week, giving you more after-hours options. With no required monthly fee or account minimum to maintain a brokerage account, no foreign transaction fee, inactive account fees, or crypto trading fees, you get a lot of value to build a portfolio on your terms. You can also check out Benzinga’s Robinhood review for a deeper dive into Robinhood’s features.
Frequently Asked Questions
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After your account is approved and you’ve linked your bank account and made a transfer, you’ll receive a notification from Robinhood to claim your reward. You will have seven days to choose your stock from a list of 20, or Robinhood will choose one for you.
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The basic Robinhood account is free. Robinhood Gold costs $5 a month.
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You can sell your free stock after holding it for three days. You must wait 30 days before withdrawing the cash from your Robinhood account.
