Most likely as a (beginning) investor or trader, you have seen the offers made by brokers through free stocks. Free stocks are simply stocks that are given to you at no cost. But should you care and how does it all work? In the below article these questions and more are answered. We conclude the article with a list of brokers that are known to run these promotions, should you feel like it’s a good fit.
How do I claim free stocks?
The process for claiming free stocks will vary depending on the broker. Some brokers may require you to open an account with them before you can claim any. Others may require you to complete a certain number of trades before you can cash in on them. And still, others may simply give them to you as soon as you sign up for an account.
Be sure to read the terms and conditions of any broker that you’re considering before you open an account. That way, you’ll know exactly what you need to do to claim your free stocks.
Why do brokers offer free instruments?
There are a few reasons why brokers offer free things. Sometimes, they’re trying to attract new customers. Other times, they may be running a promotion or contest. And in some cases, the broker may simply be trying to get rid of some old, unclaimed stocks. Whatever the reason, it can be a great way to get started in investing without having to put any of your own money at risk.
What are free stocks worth?
The value of free stocks can vary widely. Sometimes, they may not be worth anything at all. Other times, they may be worth a few dollars. And in rare cases, they may be worth a lot of money. It all depends on the stock and the current market conditions.
Can you lose money?
Just like with any other type of stock, there’s always a risk that you could lose money. However, since you’re not investing any of your own money, the risk is much lower. Still, it’s important to remember that there’s never a guarantee that you’ll make money with stocks, even if they are free.
A word of caution
There are many brokers that offer free stocks, but not all of them are reputable. It’s important to do your research before investing with any broker. Here are some things to look for when choosing a broker that offers free instruments:
- Make sure the broker is registered with one or several legal authorities such as the Securities and Exchange Commission (SEC).
- Check to see if the broker has a good rating online at review sites such as this one.
- Read online reviews of the broker to see what other investors have to say.
- Ask friends or family members if they’ve had any experience with the broker.
- Make sure the broker offers customer support in case you have any questions or problems.
- Finally, don’t forget to compare the fees and commissions charged by different brokers before making your final decision.
A small list of brokers offering free stocks
Note, that depending on your region and the promotional period, not all fee stocks might be redeemable. As mentioned before, please check the broker’s terms and conditions before spending the time signing up.
That being said, here are several brokers in no particular order that sometimes run promotions on free stocks: