Who 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 another free stock when they sign up. I opened a new account in 2017 and I received a share of Zynga. That was just $3.38, 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. (You need to have a Social Security Number to open an account with Robinhood. ) So what’s the downside? Let’s look into it more.
*Originally written in 2017. Updated in 2021. My Zynga stock went up to $10.11. Wow! It did quite well over the past few years.
Mrs. RB40 got a share of HP when she used my link. Nice! You can get your free share of stock right here.
Who is Robinhood?
Robin Hood lived in Sherwood Forest and he was one of my favorite childhood folklore figures. In 2017, 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 a brokerage that charges no commission when you trade US-listed stocks and ETFs. They came a long way since 2017 and they are quite well known now.
Back then, you can only use a smartphone to trade, but now you can also trade from a computer. The nice thing about Robinhood is that you can buy fractional shares. For example, you can buy $20 worth of Google stock. It’s nice for new investors who don’t have a lot of money yet.
Now, you can also invest in cryptocurrencies. I just purchased $20 worth of Ethereum, my first crypto investment! This is completely speculative, but why not. I already spent too much time on the sideline. There is one issue with Robinhood. You can only buy and sell in US dollars. Also, you can’t use it to buy anything or get the cryptocurrency out. For that, you need a crypto wallet account.
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 and taking rebates from the trading venues. You can read more about it on their site here – How Robinhood Makes Money.
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. You can read more about the Robinhood Gold account here. Personally, I’ll stick with the regular account and trade for free.
Also, they don’t pay interest on your cash balance. That’s another way they generate income.
Robinhood is best for…
Robinhood 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 $20. Investing can be intimidating so I think it’s great that anyone can start with so little money. The earlier you start investing, the better off you’ll be. You’ll make some mistakes and learn along the way.
Also, young investors are very comfortable with their smartphone. It’s safe to trade stocks and conduct banking transactions on your phone these days. Life is so much more convenient than when I learned how to invest. In those days, I had to call a broker to buy shares. Technology is fantastic.
New account bonus
Here is what you have to do to get a free share.
- Sign up for a new account at Robinhood
- 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 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.
I’m not moving my dividend account at Vanguard to Robinhood. I can trade free there as well. Over the last few years, many brokerages transitioned to a no-fee trading policy. Robinhood is one of the drivers for this transition. I love it. This is a huge improvement from those phone trading days. I think we used to pay over $100 per trade. The price to learn about investing was much higher in the 90s.
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 share my Robinhood portfolio below. These are all the stocks I received from referring new users.
Portfolio value: $696
Do you have a Robinhood account? If not, you should sign up to get a free share? Let us know what you got.
Passive income is the key to early retirement. This year, Joe is investing in commercial real estate with CrowdStreet. They have many projects across the USA so check them out!
Joe also highly recommends Personal Capital for DIY investors. They have many useful tools that will help you reach financial independence.