Just last fall, they raised $460 million at a $11.2 billion valuation and are looking to blowing the doors off their promotional efforts.
They’ve started rolling out different promotions for referring new accounts and I’ll try to include them all here.
The most exciting of which is a free share of stock for new accounts when you have a referral. (and once you have an account, then you can refer your friends!)
Open Account, Get Free Stock
The most exciting of the referral promotions is the free stock promotion. When you refer a friend, they get a chance of getting a share of stock valued between $2.5 and $225. The stock is awarded when they fund their account.
When you refer a friend, you also get a share of stock too – you can receive up to $500 in free stocks per year.
The stock is not automatically deposited into your account. You will get a notification (or look in your history/past invites screen) and you have 60 days to claim the reward.
You can sell the stock after 2 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):
- 100% chance of getting a free share of stock
- ~98% chance the stock has a value of $2.50-$10;
- ~1% chance the stock has a value of $10-$50;
- ~1% chance the stock has a value of $50-$225.
Once they open an account and transfer, you’ll see a notification on your phone. Click through to the person and claim your prize:
Then you get to a screen where you “pick” three stocks (part of Robinhood’s gamification):
There’s some intermediate “scratcher” screen but then you see this:
Fun! Now I can sell in 2 business days (how long it probably takes to settle).
Here are a few high stock amounts I’ve seen:
How Robinhood Promotions Work
A great 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.
No commission trades, referral sign-up money, this is what disruption looks like — if you get a free share of stock through this, let us know what you got! 🙂