Pro tip: That "new account bonus" on trading apps is not free money

I signed up for WeBull last month after seeing an ad promising $50 in free stock. Three weeks later I realized you have to deposit $500 first and keep it there for 90 days. The stock they gave me was worth $3.47. My buddy joined Robinhood in 2021 and got a free share worth $200, but those days are long gone. These referral bonuses are a fad designed to get your data and trading fees, not give you a real payout. Has anyone actually gotten more than $10 from one of these deals after all the fine print kicked in?

3 comments

3 Comments

annas872mo ago

Biggest thing people miss is that these "free stocks" are basically just advertising expenses for the company. They count it as a marketing cost and write it off on taxes, so they aren't actually losing much money. The real trap is that once you deposit that $500, you start getting emails about margin trading and options, which is where they make their real profit off rookies. My sister got a $15 credit from Webull and immediately bought a risky penny stock with it, and she ended up losing the bonus plus $40 more. Did you ever notice how these apps push you toward the riskier features right after you claim the bonus?

max4152mo ago

Webull gave me a stock worth a whole sandwich from 7-Eleven.

ray_miller411mo ago

and honestly @annas87 is spot on about the options/margin stuff. I fell for the same thing with Stash a while back. I put in the $50 bonus minimum and they kept pushing me to try their "smart portfolio" which was basically just a robo-advisor charging a fee every month. What actually worked for me was treating these bonuses like a one-time thing and nothing else. I made the minimum deposit, grabbed the free stock which was like $7 for me, and then set a reminder on my phone to pull the money out the day the 90 days were up. I never clicked on any of their "advanced trading" emails or tried options. The bonus is barely worth it but at least I didn't lose anything. I mean its practically a lottery ticket where the house already knows the outcome. idk why anyone would stick around after cashing out.