Robinhood is a trending stock trading app that charges absolutely no commissions. They recently raised $110 million at a $1.3 billion valuation and are giving away tons of stocks with their latest promotion. They’ve started rolling out different promotions for referring new accounts as you will read below.
The most exciting of which is a free share of stock for new accounts. This is basically your sign-up bonus for trying out their app. Who would turn down a free stock of possibly Facebook or Apple?
Step 1: Open Account and Get Free Stock using our link.
Once you open your account you can then refer others and earn more free stocks.When you refer a friend, they get a chance of getting a share of stock valued between $3 and $150 – the average is $10. The stock is awarded when they fund their account.
When you refer a friend, you also get a share of stock too – valued between $3 and $150. You won’t necessarily get the same stock but you could. The stock is not automatically deposited into your account. You will get a notification or look in your history/past invites screen. You then have 60 days to claim the rewarded stock.
You can sell the stock after two trading days but you have to keep the cash value of the stock in your account for 30 days. That value will be reported on a 1099-MISC.
According to Robinhood, here are the probabilities (based on when they acquired the shares, the market fluctuates so award could be different):
~80% chance the stock has a value of $3-$10; Possibly something similar to Sprint Stock.
~18% chance the stock has a value of $10-$50;
~2% chance the stock has a value of $50-$150. This could be Apple or Facebook.
Once they open an account and transfer, you’ll see a notification on your phone. Click through to the person and claim your prize. The list of invites will tell you the stock ticker of what you won then you get to a screen where you “pick” three stocks.
Open Account, Get Cash
The other promotions for referring friends are either $10 or $5 for new accounts. This promotion is available to a select group of users for a limited time too. The 30-day rule still applies, you can’t withdraw the bonus amount for 30 days and it will be reported on a 1099-MISC. It looks like the free stock the ongoing promotion currently, if one is offered on your account.
How Robinhood Promotions Work
The best part about Robinhood promotions is that your referral link never changes. It’s the same invite link you’ve always been using. The only difference is the incentive you get, the incentive your friend gets, and the rules regarding withdrawals. So what you will see above is a listing of all the different promotions they’re actively running. As a startup, they mix it up all the time so what you see will vary based on your account.
If you signed up through our link let us know in the comments below what stock you got for free! Here are some other similar apps for investing with little cash.