Free stocks are shares in a publicly traded company that can be acquired without spending any money. Earning free stocks can be quite a lucrative proposition as they not only provide access to free investments, but can also provide the opportunity to build a portfolio and make some money in the process. Although free stocks may be hard to come by, with a little bit of research and diligence there are a few ways to get free stocks. In this article, we’ll explore how to get free stocks, both through traditional means as well as more creative alternatives.
Investing Bonuses
The most common way to get free stocks is through an investing bonus. Many traditional brokerages, such as Charles Schwab and E*TRADE, offer cash bonuses or free stocks when opening a new account or meeting certain criteria.
For example, Charles Schwab currently offers a cash bonus of up to $500 based on the amount of your deposit. E*TRADE on the other hand offers up to 500 commission-free stock and ETF trades for deposits of $10,000 or more. Brokerage bonuses usually require a certain amount of money to be deposited. However, once you meet the requirements you’ll receive free cash or free stocks that you can put towards building a portfolio.
Online Brokerages
Another way to get free stocks is by signing up for an online broker account. While these brokerages don’t typically offer cash bonuses, they do often offer free stock when signing up for an account. Free stocks are typically awarded as part of a promotional offer, so it’s important to keep an eye out for these promotional offers. Popular online brokers, such as Robinhood and Webull, typically offer free stocks when creating an account.
Robinhood, for example, currently offers a single free stock valued at up to $200 when signing up for a brokerage account. Webull is also currently offering two free stocks (valued between $2.50 and $250) when signing up for a new account. In addition to free stocks, many of these online brokerages also offer promotional offers for commission-free trading or cash deposits.
Stock Splitting
One of the more creative ways to get free stocks is through stock splitting. Stock splitting is when a company divides its existing shares into multiple shares. Generally, after a company splits its stock, the stock price is reduced in proportion to the number of shares issued. Although not all companies allow stock splitting, it is possible to get free stocks through stock splits.
One example of a company that has implemented stock splits is Tesla. Currently, Tesla’s stock is split five-to-one. This means that if you owned one share of Tesla before the split, you now own five shares. Obviously, this doesn’t mean that you get five times the price of the stock – but it does mean that you get four free stocks you wouldn’t have had otherwise.
Referral Programs
Many online brokerages and financial services such as Robinhood and Acorns offer referral programs to help others benefit from using their services. A referral program is essentially a way for an existing user to recommend the product or service to their friends and family. In exchange for their recommendation, the referrer will typically get either a cash bonus or free stocks for each person that signs up for the service.
For example, Robinhood currently offers a referral program where you can earn a free stock (valued at up to $200) for each friend you refer to Robinhood. Acorns, on the other hand, offers a referral program where you can get a $5 bonus for every friend who signs up and makes an initial deposit of at least $5. Referral programs are a great way to get free stocks, as you can share the benefit and get something in return.
Social Media and Contests
Social media and online contests are another way to get free stocks. Not all brokerages offer this service, but some such as Public.com and M1 Finance offer social media contests that can offer free stocks, especially when they are first starting out.
These contests typically involve creating content that promotes the broker’s services or products, such as creating videos or writing blog posts. The most successful participants will typically be rewarded with free stocks in exchange for their efforts. Additionally, some brokerages such as Public.com also offer a certain number of free stocks for users who share their referral link on social media.
Sign-Up Bonuses
Sign-up bonuses are another great way to get free stocks. Sign-up bonuses typically involve getting free stocks when you open a new account or meet certain criteria. Brokerage sign-up bonuses are generally smaller than investing bonuses, but they can still offer a relatively large amount of free stocks. Some brokerages, such as Motif Investing and Loyal3, offer free stocks when you open a new account.
Of course, you’ll still need to make a deposit or meet certain criteria to get your free stocks – but usually the amount you need to invest to get the bonus is relatively small. For example, Motif Investing currently offers three free stocks when you open a new account and make a deposit of at least $3,000. Loyal3, on the other hand, is giving away five free stocks when you invest at least $10 in their exclusive loyalty-focused investments.
Selling Covered Calls
Selling covered calls is another way to get free stocks. Covered call writing is an options strategy that involves selling call options on a stock that you already own. When you sell a covered call, you give the buyer the right (but not the obligation) to buy your stock at a predetermined price. In exchange, the buyer pays a premium, which is effectively free money for you.
Although it’s not quite free stocks, the money you receive from selling covered calls can be used to fund more stock purchases. As such, it’s a great way to effectively get free stocks while still making money in the process. Of course, this strategy is not suitable for everyone, as it does carry certain risks.
Getting free stocks is possible, although it takes some effort and research. From brokerages bonuses to signing up for online broker accounts, there are plenty of ways to acquire free stocks. Additionally, stock splits and referral programs can be great ways to get free stocks without having to invest any of your own money. Lastly, selling covered calls is another strategy for acquiring free stocks, albeit in a slightly different way. Regardless of your approach, getting free stocks is a great way to start building a portfolio.
