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Get Your Free Stock From Robinhood

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Get Your Free StockWho loves free stuff? Me and everyone I know! You’re in luck today because here is your chance to get a free stock. Robinhood, an online brokerage, is giving away one stock when you sign up for a new account. Once you have an account, you can refer friends and you’ll receive one stock when they sign up. I opened a new account last week and I received a share of Sprint. That’s just $7.75, but it’s still nice to get something for free. The stock is chosen randomly from Robinhood’s settled shares, so you could get Apple, Ford, Sprint, or something else altogether. (I believe this offer is only available in the US at this time.) So what’s the downside? Let’s look into it more.

Mrs. RB40 got a share of HP. Nice! Sign up with her referral link now to get a free share. (There is some technical difficulties with my link so I’m using her link here, with her permission of course.)

Who is Robinhood?

Robin Hood lived in Sherwood Forest and he was one of my favorite childhood folklore figures. I got a book from the library and read it to RB40Jr, but he just wasn’t interested. Kids these days have a lot more entertainment options and I must admit Star Wars space ships are more exciting than Robin Hood running around a forest. OK, I digress. Robinhood is an app-only brokerage that charges no commission when you trade US listed stocks and ETFs. From what I’ve seen online, the company is legit and not a scam.

However, you need an iOS or Android phone to trade. You can sign up for an account from a computer, but you can only trade on a smart phone. Personally, I don’t like this because I prefer to do everything from my computer. The smart phone screen is too small and I don’t like reading or doing serious stuff on the phone.

Free trades?

Free stock trading is great, but I am very skeptical. Every company that offers free trading in the past went out of business after a while or changed their model. How can they offer free trading? Well, here is how they make money. Robinhood makes money by charging a monthly fee on their Robinhood Gold account. With Robinhood Gold you can invest up to 2x your buying power and gain access to after hours trading. This is basically a margin account. You borrow money to invest. I don’t like margin trading because it is risky. The good thing is they don’t charge interest for the margin*. Personally, I’ll stick with the regular account and trade for free.

*Fine print* Additional buying power over $50,000.00 has a yearly interest rate of 5.0%.

Also, they don’t pay interest on your cash balance. That’s another way they generate income.

This plan sounds a bit light to me, but we’ll see if they can make it. They raised a lot of money from venture capitalists so they should be able to operate for a while and give away a bunch of free stocks. Account owners shouldn’t have a problem if Robinhood goes out of business. We should be able to transfer our shares to another brokerage or cash out. That’s what I did recently when I heard that Loyal3 is closing up shop.

Robinhood is best for…

Robinhood seems like a very cool app. I think this is a great fit for new investors, especially if they’re young and don’t have a lot of money to invest. With Robinhood, you can buy a few shares of stocks and don’t have to worry about the transaction fees. You don’t need $5,000 to start investing. Anyone can start with $100 and I think that’s great. The earlier you start investing, the better off you’ll be.

Also, young investors are more comfortable with their smart phone. I like my phone, but I don’t want to trade stock or do much banking on it. It’s just easier for me to do those things on the computer. Young investors probably don’t mind doing financial transactions on their phones. Let me know if I’m right.

New account bonus

Get Free StockHere is what you have to do to get a free share.

  • Sign up for a new account
  • Verify your email address
  • Install the Robinhood app on your phone
  • Claim your free share. You can do this in the Robinhood app.
  • Link your bank account to get the money out and fund your account
  • Share your referral link with friends to get more shares!

I signed up and received my free share in less than 10 minutes so you shouldn’t have any problem with it. The share will take a couple of days to settle so you need to wait a bit before you sell. Also, you need to keep the cash in your account for 30 days.

My account

I’m not moving my dividend account at Vanguard to Robinhood. I only pay $2 to trade and I rarely trade. Also, I trust Vanguard a lot more than Robinhood at this time. I’ll keep my free stocks at Robinhood and maybe add a couple thousand dollars if I want to buy a speculative stock. Free stock trading is a great idea, but I want to see if they can make it work for at least 5 years.

Get your free stock

What are you waiting for? Sign up with Robinhood and get your free stock today! I’ll receive a free stock too when you sign up. Heh heh, that’s why it’s great to have a blog. I have an online platform where I can spread this kind of news and we both benefit. Here is my tutorial on how to start a blog and why you should. Everyone should have a blog to help track their personal goals. It’s been extremely useful for me and blogging might change your life too.

I’m sure you’re curious what kind of stock you can get so I’ll update what stocks I receive below.

  • $8 Sprint: 5 shares
  • $5 Sirius: 6 shares
  • $19 HP: 1 share
  • $7 Opko Health: 2 shares
  • $5 Office Depot: 2 shares
  • $7 Southwest: 3 shares
  • $7 Xerox: 2 shares
  • $30 GE: 1 share
  • $7 VEREIT: 1 share
  • $9 Staples: 2 shares
  • $6 Chesapeake Energy: 2 shares
  • $4 Rite Aid: 1 share

Hmm… These free stocks are pretty cheap. The biggest one so far is GE.

What do you think about this free trading model? Did you sign up to get a free share? Let us know what you got.

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{ 53 comments… add one }
  • Mr. Tako May 15, 2017, 12:24 am

    Interesting Joe. Like you, I think I’d prefer to keep my millions with a reputable brokerage. It’s too much money to risk on somebody I’ve never heard of.

    Besides, I like having the ability to use both a computer and a smartphone. Phone-only trades seems really limiting.

    Giving up money market interest would also be a really bad idea for me. I make WAY more in interest than I spend on trades right now.

    • retirebyforty May 15, 2017, 9:22 am

      I just don’t see a reason why you need to use a phone app to trade. If you can’t wait until you get on a computer, then something’s wrong.

  • MrDoublingDollars May 15, 2017, 2:36 am

    Oh wow, you are lucky to have received the link! I haven’t yet and have even messaged them about hooking me up with one. Oh well, hopefully I will get one soon.

    I have ZERO problems with robinhood. They have my trust.

    • retirebyforty May 15, 2017, 9:23 am

      Maybe you need to update the app. It should be right on the app under Free Stock. Check it out.

  • Mustard Seed Money May 15, 2017, 3:26 am

    I have used Robinhood in the past. I believe that Snoop is one of the accredited investors for Robinhood. It’s a great app and super easy to use. Definitely a fan!!!

    • retirebyforty May 15, 2017, 9:37 am

      Thanks for the feedback. I’ll probably use it for speculative trading. 🙂

  • The Grounded Engineer May 15, 2017, 3:50 am

    I’ll have to check this out. Thanks for the recommendation, Joe!

  • Ms. Frugal Asian Finance May 15, 2017, 4:30 am

    This sounds interesting. I’d love to get a free stock. I’m just a little hesitant to link anything to my bank account. I’ll need to look more carefully into this app before I take action. Thanks for sharing!

    • retirebyforty May 15, 2017, 9:38 am

      Yes, that is a concern. I don’t like linking my main bank account either. Robinhood seems reputable, though.

  • Apathy Ends May 15, 2017, 4:50 am

    I remember reading about RobinHood a few years ago when it was getting funded (it sounded sweet when I was day trading).

    Probably won’t make a move but the idea of having an account for play money sounds fun.

    Thanks Joe

    • retirebyforty May 15, 2017, 9:38 am

      It’d be perfect for day trading. 🙂 I don’t do that, though.

  • Jay May 15, 2017, 5:09 am

    Thanks for sharing! As you mention, Robinhood is a huge a boon for young investors who don’t want commission costs to eat up their entire deposits. The refer-a-friend bonus with a free random share is also a really interesting approach!

    • retirebyforty May 15, 2017, 9:38 am

      I agree. Young people need to start investing as soon as they can and learn from their mistakes.

  • FromUSA May 15, 2017, 6:12 am

    Here’s hoping I will get a share of Google or Amazon.
    Or maybe even BRK-A ??!! Well, maybe not. LOL.

    A privacy question regarding this referral program: will the referrer know the names of the “referees”?

    • retirebyforty May 15, 2017, 9:39 am

      Good luck! I heard one person got Apple. Most people will get cheaper shares, though.
      Yes, the name of the referee will show.

  • Duncan's Dividends May 15, 2017, 6:47 am

    Signed up via your wife’s link. hopefully they give you something better than I got. I received one share of VEREIT so about $7.50 worth of stock in a company I already had plenty of shares in, but hey free is free so I can’t complain 🙂 Thanks for the link!

    • retirebyforty May 15, 2017, 9:40 am

      Thanks! Share with your friends and see if you get better stocks. I’m not familiar with VEREIT. I got Sprint when I signed up, $7.50 is a bit low.

  • Mike H. May 15, 2017, 7:01 am

    I use Robinhood, and have enjoyed it. Unlike my other brokerages, I don’t have to worry about transaction costs when I’m making the kinds of trades I can afford (we’re talking hundreds of dollars, not thousands).

    It’s the perfect tool to build a portfolio. My plan is to acquire a position I’m comfortable with, average down if I can, and eventually transfer it (outgoing ACATS is supported but incoming ACATS is not) to a full service broker. I have a Firstrade account that I started last year, but Robinhood is working for me.

    • retirebyforty May 15, 2017, 9:41 am

      Thanks for letting us know. It’s great to see that we can transfer the share out. It’s really nice for DCA when you don’t have to pay the transaction fees.

  • Jim @ Route To Retire May 15, 2017, 7:08 am

    I’ve been meaning to dig into this for a while now, so you just lucked out get the referral credit! I just signed up. 🙂

    I’m probably not going to use it a ton, but a free share’s still a free share!

    — Jim

    • retirebyforty May 15, 2017, 9:41 am

      Thanks! What did you get? 🙂

      • Jim @ Route To Retire May 16, 2017, 4:48 am

        Well, this didn’t go as smooth for me as it probably does for most people. It ended up telling me I needed to submit a copy of my driver’s license for verification. Later in the day, it needed to verify additional information. Then eventually it prompted me that I needed to lift my credit freeze I have set.

        Anyway, I’m still waiting to see what transpires, but the ball’s back in their court right now. For this effort, hopefully I get a share of something good like Google or Amazon! 🙂

        — Jim

        • retirebyforty May 17, 2017, 8:57 am

          Sorry to hear that. That’s way too much effort for one stock.

          • Jim @ Route To Retire May 17, 2017, 1:18 pm

            Haha, call me cheap, but it was all about the mission at hand. I got a free share of Vereit (VER) worth $7.53. After the $5 cost of temporarily lifting my credit freeze, I’m up $2.53. Time spent means I probably made about $1/hr… my hourly rate wasn’t too impressive, but maybe I’ll spread the love on my site and get some free shares of other stocks as well. 🙂

            — Jim

  • Wes May 15, 2017, 7:11 am

    I’ve not heard of this before but will be checking it out – thanks for the heads up!

  • Mr. SSC May 15, 2017, 7:59 am

    Gah, no free share for me as I already use Robinhood. I don’t have loads in there maybe ~$2k that I’ve invested from my allowance as my “fishing fund” and fun money. It’s like vegas but with slightly better odds, lol.

    I like it and can see how they get interest on people’s money. I’ve had ~$15 just hanging out in there for almost 9 months before I realized I could get 3 shares from a certain stock with it. Now my buying power is $1.40 or so, but if you have a lot of people like me with various amounts in an account just getting interest, it could be enough to cover costs. I find it easy enough to use from my phone or ipad, so no worries about it from me. Of course I also just have “fun money” invested there, so not a lot of skin in the game from my end. If I was investings tens of thosuands, I’d stick to someone more reputable, but that’s just me.

    • retirebyforty May 15, 2017, 9:43 am

      Check the app. You can share the referral link with your friends. 🙂
      Thanks for sharing your experience. I’d probably add $2,000 top.

  • Preston May 15, 2017, 8:03 am

    In the fine print … “**Additional buying power over $50,000.00 has a yearly interest rate of 5.0%.”

    • retirebyforty May 15, 2017, 9:43 am

      Thanks! I will add this to the main post. I saw that, but didn’t think it was relevant to young investors.

  • Ernie Zelinski May 15, 2017, 8:58 am

    I tend to stay away from free stuff.

    As someone once said, “A free lunch ain’t worth what you paid for it.”

    • Dave in Sunny FL May 15, 2017, 9:09 am

      TANSTAAFL. There ain’t no such thing as a free lunch. Credit Robert Heinlein for popularizing the acronym; I had no idea what it meant when I first read it in those pre-internet days.

    • retirebyforty May 15, 2017, 9:45 am

      I love free stuff. Maybe someday I’ll get pass that.

  • Dividend Growth Investor May 15, 2017, 9:57 am

    I referred a few people as well, and the companies ranged from some GE and HPE to a lot of SIRI, CHK, VER and RAD.

    Robinhood is a great broker for beginning investors. If you are starting out today, and could not put a lot of money right away, it is a good place to be. I hope they succeed, but I also hope they are able to offer desktop investing for the older Millennials 😉

    DGI

    • Kailash Nathan May 15, 2017, 11:16 am

      I think these small brokers are really just going for customer base. A larger bank will buy the assets soon. My brokerage account progression: Zecco -> TradeKing -> Ally
      LOYAL3 customers got moved to FolioFirst.

  • Kailash Nathan May 15, 2017, 11:11 am

    I signed up with your referral. I’m curious about how they do the margin trades. 5% per year doesn’t seem bad – it is enticing, but you have to think about how you’re going to maximize that margin. Typically that’s going to lead you to making the choice to catch a “surge” as in speculating before earnings or buying on rumor.

    The only winning move is not to play. Slow and Steady baby!

    • retirebyforty May 15, 2017, 12:14 pm

      Now probably isn’t a good time to buy on the margin. The stock market valuation seems very high. It can’t go up forever.

      • Skylash May 15, 2017, 11:15 pm

        Well if I had bought NVDA on margin last week I’d have made a good amount of money 🙂

        Robinhood doesn’t allow options and therefore isn’t a brokerage of choice for me.

        I’m now established and have figured out my investment strategy and have a risk profile I’m comfortable with.

        Robinhood even though free does not provide guarantees that my order will be executed at my limit or the market price. They won’t give me a price correction, and of course they don’t allow you to invest in the broader market. It has its niche and I figure a bank like Bank of America would buy the customer base.

  • John Pedroza May 15, 2017, 11:39 am

    I use Robinhood and have never had a problem with it. It wish I had the same link you got.

    • retirebyforty May 15, 2017, 12:15 pm

      You probably should update the app to the latest version. The referral link should be under “Free Stock.” It’s right in the app.

  • Brian Robben May 15, 2017, 12:29 pm

    Sweet post about Robinhood! I’m also a big believer in that app and listed them as 1 of 3 apps to download to help people get rich: https://www.youtube.com/watch?v=LywdbaoQXkM

    Keep posting and be great!

  • The Tepid Tamale May 15, 2017, 6:33 pm

    Wow, a whole new world for me. I don’t think I will sign up now, but thanks for teaching me something Joe!

  • Buy, Hold Long May 16, 2017, 3:24 am

    Very nice, unfortunately I won’t be able to get one as I am in Australia. Thanks anyway

  • The Magic Bean Counter May 16, 2017, 5:27 am

    Thanks for the post RB40. Robinhood sounds like an interesting company. I tend to lean more towards index funds rather than single stocks, but its good to know what is available out there.

    • retirebyforty May 17, 2017, 8:57 am

      You can trade ETF with no fee. That’s pretty good. No mutual funds, though.

  • Mr Crazy Kicks May 16, 2017, 12:19 pm

    A younger Mr CK would have been more excited about this. Now I’m pretty much all buy and hold index funds. But certainly a tempting proposal if you trade!

  • SMM May 16, 2017, 12:44 pm

    I’ve had RH for maybe a year now and I love it. The interface is easy to use, easy to see transactions and your holdings, and easy to contact customer service and a response is received timely to queries. Plus I actually like the convenience of using my smartphone to see how my stocks are doing, how much dividends have been paid and where to reinvest them since trades are free.

  • Eric May 16, 2017, 3:05 pm

    Hey Joe, I’ve been using Robinhood since last August. It really helped me obtain a deeper understanding about trading. Best of all, it’s free and there were no minimums (when I opened my account). I started with $100 and auto deposit $25/week. I think it’s perfect for beginners like me. It did receive Apple’s Design award in 2015, if that helps.

    • retirebyforty May 17, 2017, 8:58 am

      That’s great! It’s the perfect fit for you. It’s really nice that you learn about stock without having to pay much.

  • Mr. All Things Money May 17, 2017, 8:15 am

    I’m very skeptical of these tiny brokerage companies that seem to be springing out left and right promising dirt cheap stock trading. They want to rapidly raise their clientele by giving away freebies or extremely low commissions. Such companies are normally looking for a buyout out from a large brokerage and will likely shutdown or sellout in short-term.

    Joe, what was the name of that other such brokerage that shutdown not too long ago and customers were left hanging to either liquidate or transfer their accounts to another brokerage. I think you had an account there as you mentioned it in one of your blogs. I don’t know if they charged any transfer fee, but regardless it’s a hassle that takes away time and energy from focusing on investments and other important things.

    If you really want a good quality freebie, sign up with one of the big well known brokerage firms that have large market shares and have been around for decades. They all give out free trades or cash promotions to new customer, in some cases even existing customers can get such promotion as I’ve received them from my existing brokerage.

    • retirebyforty May 17, 2017, 8:59 am

      I think you might be right. Unless they have a huge customer base, they won’t make any money.
      The one that shut down was Loyal3. Zecco before that.

  • Amy @ Life Zemplified May 17, 2017, 9:38 am

    I finally jumped in and signed up with Mrs. RB40’s link and got VER free. Hope she gets a good one!

  • jim May 17, 2017, 3:06 pm

    I got a share of Verreit (VER )

    Thanks

  • Ryan Ohara October 16, 2017, 9:36 pm

    Robinhood recently changed it so you can transfer from other brokers to Robinhood for free. Great if anyone plays on doing some day trading/penny stocks.

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