What is the Robinhood bonus?
If you’re looking for a Robinhood promo code where you can get a bonus for trading in prediction markets, you’re going to come up empty handed. While Robinhood does offer bonuses for new users, these aren’t deposit-match offers that you can use for any activity on the platform. Instead, this brand usually offers a free stock that’s worth between $5 to $200. Users get this bonus after they create a self-directed investing account, and then link their bank account or debit card to the account. Note that the amount you get is random, and that the overwhelming majority of users will get a $5 stock.
I found it disappointing that there’s no bonus that you can use to purchase event contracts. But at the same time, I get it. Robinhood already has millions of users, so they don’t need to aggressively offer huge bonuses to attract new prediction markets users. It’s also likely that Robinhood is positioning itself as a professional alternative to other prediction markets sites.
The good news is that there is a workaround so that you can indirectly get a bonus for trading event contracts. Check it out…
What is the bonus workaround for prediction markets users?
The Robinhood signup bonus where you can get a free stock or fractional stock doesn’t apply to those who are buying and selling event contracts. However, there is a workaround. Namely, you can meet the bonus requirements of opening an investment account, acquire your free stock, and then sell it. You can then use any cash from the sale as your “bankroll” for funding your prediction markets trading activities. To learn more about this type of trading, you’ll want to check out this Robinhood prediction markets review.
It’s important to note that you need to wait three days before you can sell your bonus stock. Secondly, you can’t pull the cash from the sale out of your account for a full 30 days. That’s not an issue though, as you can immediately use the cash to start purchasing event contracts. And if you want even more free cash to use for your trades, then you’ll want to check out this next section…
Are there other Robinhood promo codes or bonuses available?
Yes, there is another way to get a bonus, and that’s to refer your friends to the site. This is a two-way referral program, where both you and your friend get a stock or fractional stock that’s worth between $5 and $200. Yes, this is the same bonus as the welcome bonus, and it carries the same rules. Namely:
- Your friend will need to open a qualifying account before either one of you receives the free stock.
- You must hold the stock for three days before you can sell it.
- You can’t pull the cash out from the sale for 30 days, but you can use it immediately to buy event contracts.
You can collect up to $1500 worth of referral rewards every year. If you get a $5 stock every time you refer a friend, that means you can refer up to 300 friends, colleagues, family members and other associates.
If you’re looking for other ways to make the most of your Robinhood account, then check this out:
Other bonuses
Aside from referral bonuses and a welcome bonus, there are other opportunities to collect bonuses that are related to specific Robinhood retirement accounts or investment accounts. For example, these are fairly common bonuses on the platform:
- IRA contribution match, where you can get a 1% match (regular users) or a 3% match (Robinhood Gold members) when you make a contribution into a self-directed IRA account. Note that the funds must remain in the account for five years, otherwise you may be subject to bonus clawback. In other words, this is free money, but it’s locked up for a long period of time, so you can’t cash it out to use in your prediction market trades.
- Retirement account transfers. If you move your retirement account to the platform, you can get a 1% transfer bonus if you’re a regular member, or a 2% transfer bonus if you’re a Gold member. Here again, the funds need to stay in the account for five years, so it’s not suitable for those who are interested in trading event contracts.
You won’t need a Robinhood bonus code to take advantage of these two types of bonuses. However, you’ll want to check the website to read the full rules, as well as to check if the rollover and transfer bonuses are currently available to you.
Now let’s take a look at how to claim your welcome bonus, and then use it for your trading activities in the prediction markets…
How to use the Robinhood bonus
To claim your “free stock” bonus, as well as to become eligible for the other bonus opportunities, just follow these simple steps:
- Tap the Robinhood banners on this page.
- Tap the “sign up” button on the brand’s homepage.
- Follow the prompts to create your Robinhood account.
- Open a qualifying investment account.
- Link your debit card or bank account to the investment account.
- Pick your free stock or fractional stock.
Be sure to read the terms on the site and the terms of the bonus carefully. That way, you’re assured of meeting all the requirements so that you can get your free stock that’s worth from $5 to $200. If you want to use this bonus indirectly for prediction markets trading, then wait the requisite three days before you sell the stock, and then use the cash to start trading.
Here are other tips for optimizing your bonuses and trading activities…
5 insider tips for making the most of the Robinhood bonuses
As you’ve discovered, you can get a welcome bonus in the form of a free stock with no Robinhood promo code required, and then you can sell it to help fund your trades in the prediction markets.
Sell the stock soon
Robinhood requires you to wait at least three trading days before you sell the stock, so you’ll want to mark that on your calendar, or have a reminder set so you remember to sell it when you’ve passed the three-day mark. In most cases, you’ll want to sell the stock immediately. This is especially important if you’re holding a volatile stock, as holding it any longer than required may result in it losing value.
Before you sell, however, it’s a good idea to check on any tax implications. Even a small bonus stock can create a taxable gain that you may need to report. This isn’t tax advice – instead, you’ll want to consult with a qualified tax professional to understand if you need to report the stock. Be sure to keep good records of how much the stock was worth when you received it, and how much it was worth when you sell it.
Use the bonus as “tuition”
If you’re new to buying and selling event contracts in prediction markets, then go in with the mindset that your bonus – even if it’s just $5 – is your free “tuition” for learning the ins and outs of this sort of trading. Be sure to get clear about your strategy before you start trading so that you don’t make emotional decisions (which are often mistakes).
Start small
Don’t use up all your funds at once, especially on just one prediction market. Instead, start small by purchasing a small number of event contract, and then scale up as you gain confidence and experience. You might even challenge yourself to see if you can trade for a couple weeks or even a full month with your initial $5, plus any profits you make from being correct with your predictions.
Don’t just drop links to your friends
If you’re interested in taking advantage of the referral bonus, then don’t just drop links in front of your friends. Instead, spend a little time telling them the benefits of signing up with Robinhood. Get them excited about it, and let them know about their free stock bonus, too. Telling your friends about the benefits of the site will increase the number of people who join using your referral link.
Take the fees into consideration
Keep in mind that this platform charges a $0.02 fee when you purchase an event contract, as well as when you exit a contract early. If you’re starting with a bonus of $5 for your trading activities, be sure to take into account the fees when trading, otherwise you’ll overextend yourself. You can check out my article on this topic if you’d like the Robinhood fees explained to you in simple terms.
Final thoughts on claiming the Robinhood promo code or other bonus
I admit that initially I was disappointed that Robinhood does not offer a bonus for new prediction markets users, such as a deposit match offer like some of its competitors. However, I also quickly realized that I could use a workaround by first accepting and then selling the free stock. If you accept this bonus, then you’ll likely have somewhere in the neighborhood of $5 in cash once you sell your stock, unless you happen to be the 1% that gets a $200 stock. You can also collect up to $1500 in stock rewards every year for referring your friends to the site, which you can sell as well.
When you’re ready to collect your bonus and start trading prediction markets event contracts, just tap the Robinhood banners on this page. Your welcome offer will be applied to your account automatically after you open a qualifying account and meet any other requirements. Enjoy the trading!
Robinhood promo code and bonus FAQ
Is there a bonus available for downloading the app?
While there is a Robinhood app for iOS and Android available, there isn’t any sort of special bonus tied to downloading the installing the app. Of course if you’re a new user, you can take advantage of the introductory offers we talked about earlier.
What are the fees for trading event contracts?
Robinhood’s prices are fairly straightforward, as you’ll pay a 2¢ fee for any contract you purchase, as well as a 2¢ fee for each contract that you exit early. There are no fees for funding or withdrawing from your Robinhood account, unless you select an instant transfer for a withdrawal.
Where can users get a Robinhood promo code?
You usually don’t need a bonus code to take advantage of this brand’s welcome bonus, as all you have to do is tap the Robinhood banner on this page to claim it. However, if and when a bonus code becomes available, you’ll find it right here on this website.
