Robinhood is a trading platform that enables users to trade stocks and other financial assets commission free.
One of the ways the company encourages users to invite their friends to the platform is through its referral program, which rewards both the referrer and the referred with gift stocks.
To be eligible for the Robinhood referral program, you need to have an account with the platform:
To receive the gift stocks, your friend needs to sign up for a Robinhood account, get approved, and link their bank account.
Once they complete these steps, you will both receive a notification informing you that your gift stock is ready to claim.
One of the recent updates to the referral program is that now you can pick your own stock from a list of 20 leading American companies.
The cash value you receive for your gift stock could range from $5 to $200, and approximately 99% of customers will get stock worth $5.
You can use the cash value to claim a fractional share of a stock.
The list of companies you can choose from is selected by market capitalization for their respective sectors.
If you don't claim your gift stock within 60 days, it will expire, so it's essential to keep an eye on your notifications and claim your reward promptly.
You're allowed to sell your gift stock three trading days after you claim it.
Once you sell it, you can use the proceeds to invest in other stocks.
However, if you want to withdraw the proceeds, you must keep the cash value of that stock in your account for at least 30 days after claiming it.
After that 30-day window, there are no restrictions on withdrawing the proceeds.
There is a limit to the number of gift stocks you can receive each year through this program.
You can receive up to $1,500 in stocks per year, and the price of the stock you receive will be listed in your Statements & History.
Once you reach your $1,500 limit, you'll stop receiving gift stock, but your friends can still receive a stock if they sign up using your referral link and meet the conditions of the promotion.
Finally, it's essential to consult with your tax advisor on how the receipt and sale of stock will impact your own tax situation.
The cash value of the stock at the time you claim it may be reported as "Other Income" on a 1099-Misc form, if applicable.
Any gains or losses on the sale of the stock are reported as capital gains or losses.
You can check the original value of each stock you receive in your Statements & History.
In conclusion, the Robinhood referral program is an excellent way for users to earn gift stocks by inviting friends to the platform.
Once you understand the terms and conditions, it's easy to start sharing your referral link and earn rewards.
This article was generated using automation technology, and thoroughly edited and fact-checked by an editor on our editorial staff.