How Effective is Free Stock Trading? The Best Online Brokers and Free-Stock Trading Apps in 2021
Investing your money for future profits comes at a price. Most people shy away from investing because most investments cost a good amount of money. For instance, if you are living from hand to mouth, it might be hard to think of a good investment option, such as stocks. However, you can invest in stocks without having to put a lot of your money into the investment. In this article, you will learn how you can start trading and get free stock trading with various brokers or trading Apps.
What is Free Stock Trading?
To secure your future financially, you need to think of different investment options available. One of the investments you can venture into is stock trading. Stocks trading come at a fee, sometimes high. However, you can start slowly and with good research and luck you can start getting free stocks and grow your investment without much of your money.
To lure more investors in their platforms, different brokers have come up with the free stock strategy. Whereby after you join and activate your account, you get a free stock added to your account. Others, you earn a free stock, whenever you invite another person to join the trading platform. The broker gives you a referral link that you can use to invite people into the platform and you earn a free stock whenever anyone you have recommended joins the brokerage firm.
How Do Brokers Make a Profit from Free Stock Trading?
Some brokers that offer free stock trading make profits using the payment for order flow (PFOF) method. Other big brokers make their profits by re-investing their clients’ money in subsidiary banks. By investing the clients’ money sitting in the account overnight, they earn an interest. They share the profits earned with their clients, while they keep a larger share of the interest.
Although it may seem like not much, the millions of money sitting in various clients’ accounts, earns a large pool of profits for the brokerage. The reason why trading brokers offer free stocks is to attract a large number of investors.
What Are the Best Platforms for Free Stock Trading?
Investing in free stocks can earn you profits from anything $2 up to $2000. The following are the top trading platforms where you can get free stocks.
Robinhood is one of the best trading platform suitable for beginners and experienced traders alike. Also, it is among the first platforms to offer free-commission on stock trading. The platform offers their clients both the cash and margin accounts.
Robinhood offers a sign-up bonus in free stocks from a variety of companies. In addition, you get free stocks when you refer other investors to the platform. You can get free stocks from companies such as Facebook, Ford, Microsoft, Energy Transfer among other companies. The value of the stocks can range from just a few dollars to hundreds of dollars. However, the chances of getting high-value stocks are slim.
The platform is basic which makes it friendly for new beginners. Seasoned traders may find it too basic for complex trades such as high-value stocks, cryptocurrencies, ETFs, and shares.
To get free stocks from Robinhood, download their application and sign up. Also, keep on referring your friends to stand a chance to earn more free stocks.
Another platform that offers free stock trading is Webull. It is a free commission stock investing application friendly to new investors. You win a one free stock once you open and sign up an account and make a deposit of $100. The value of the free stock can range from $8 to $1,600 and it is randomly picked.
Another way you can earn a free stock by Webull is through referrals. You get a free stock every time you recommend another person to open an account with Webull. The terms for free stocks on Webull keeps on changing from time to time. So, you should keep on checking the updates on free stock.
3. SoFi Invest
SoFi is an excellent trade platform best for both experienced and new traders. It offers a wide variety of products such as stocks investments, student loans, insurance, personal loans, and cash account management among other services.
SoFi allows you to trade in stocks and EFTs, without any commissions. In addition, SoFi allows you invest as little as $1 in cryptocurrencies, stocks, and ETFs, as well as managing you own investments.
SoFi gives you up to $1000 worth of free stocks when you open an account and actively invest with the platform. Additionally, you can get free SoFi stocks by playing the Claw Game. When you win the game, you get a few dollars which are converted stocks. The award can range from anywhere between $5 up to $1,000. However, the chances of winning high value stocks are minimal.
4. E*TRADE Financial
E*Trade offers its investors $0 commission and transaction fee for online stocks, ETFs, and mutual funds. The platform is suitable for all types of traders, whether beginners or experienced. You can invest in mutual funds or ETFs at no commission and transaction fee.
The best part of investing with E*Trade is they offer you educational resources to help you make an informed investment decision. The training comes in handy for new traders as they are able to diversify their portfolio and make profits from their ETFs investments.
E*Trade offers you wide investment categories for beginners and experienced traders. Also, you get instant customer care support to make your investment journey efficient.
5. TD Ameritrade
Another platform where you can get free stock for trading is at Ameritrade. The platform charges zero commissions for stocks and ETF trades. It is perfect for active traders and long term investors, thanks to its free and low cost features and tools required for smart-making decisions for every trader. Investment options at Ameritrade include stocks, ETFs, Forex, mutual funds, bonds, options, and futures.
Firstrade is another awesome platform where you can get free stocks trading. The low cost trading platform gives you zero commission for trading in stocks, ETFS, and mutual funds without any hidden fees.
The platform is one of the best trading online site with high ratings from Kiplinger in 2019. Other than the Zero commission, you can get free stocks. When you sign up or open an account with the brokerage, you get a free stock.
In addition, when you refer other people to the platform you get additional free stocks. You can use the referral link supplied by the platform to get other people to sign in.
The free stocks are selected randomly which is determined by the algorithm. The value of the stocks ranges from $3 up to $200. However, the value of the stock fluctuates depending with the movement of the market. The maximum worth of free stock you can earn from the Firstrade is $500.
Free Stock Trading FAQ:
1. How can I get free stock?
It depends with the company you want to trade with. Not all stock trading companies give out free stocks. Also, different brokers have different terms for giving out free stocks. However, most platforms such as Robinhood and Firstrade, will give you free stock when you open an active account with them. Also, you will get free stock by referring other people to open an account with the respective brokerage. Check for the requirements for every platform that is offering free stock.
2. How long will it take me to receive a free stock?
Again, this depends with the requirements of the various trading platforms. Generally, you should be able to receive the stock with 24 hours to a few days. Check the requirements for respective platforms when claiming the free stocks.
3.How long can I keep the free stock before reselling it?
Once you claim your free stock, it will get automatically added to your account. Every broker has different requirements when it comes to dealing with free stock. Read the instructions regarding the free stocks to see for how long you can hold it before selling. Some brokers allow you to sell your stock anytime. Others will not allow you to sell it up until the required holding period is over.
4.Which free stocks can I get?
The free stock you get depends with the broker you are trading with. Different brokers deal with different type of companies. For instance, with Robinhood, you can get free stocks from Facebook, JP Morgan Chase, Microsoft, among other companies.
Free Stock trading can boost you a mile financially. Although, most of them are highly valued, it wise to claim up the free stocks offered by the brokers. Common ways you can get free trading stocks include, opening an account, through referrals, or making new deposits into your account. Different brokers have different terms and conditions when it comes to free stocks. If you are interested in free stock, check out for the brokers with the best terms.