How does the Free Stocks offer work?
Firstrade 'Get Free Stocks' offer is valid for existing qualified U.S. domestic accounts only (individual, joint and custodial accounts) who successfully refer a new qualified account. Both the referrer and the person referred (known as "referee") will be eligible for one share of stock.
However, if the existing qualified account invites a non-qualified account (IRA & other U.S domestic account types), the referrer will still be entitled to claim the free stock, but the referee would not be qualified.
The referee must open the new account through the referral link. The free stock offer will be invalid if the referee does not complete the account opening process within 30 days.
What are my chances?
Chances of getting a free stock: You have a 100% guaranteed chance to get a free stock for each friend that successfully opens an account at Firstrade.
Apple (AAPL), Facebook (FB), Bank of America (BAC), Advanced Micro Devices (AMD): You have a 1 in 100 chance of getting a free stock from one of these companies every time a friend opens an account at Firstrade.
How do we select your free stocks?
The free stock is one share selected randomly and determined by an algorithm. The value of the share may be anywhere between $3 and $200, and fluctuates based on market movements.
We choose from the most popular companies on Firstrade, based on the trading volume in the last quarter.
How many free stocks can I claim?
Every eligible account can have up to $500 in free stocks. If your total value of free stocks is approaching $500, you'll stop receiving free stocks once the lowest priced stock in our free stock selection pool would bring you over the $500 limit.
For example, if you have $495.00 in free stocks and the lowest-priced stock in our free stock selection pool is $6, you won't be able to receive more free stocks. However, your friends will still receive a free stock if they sign up with your invite link.
How will this reflect under my Consolidated 1099 tax document?
The cash value of the free stock at the time you received it may be reported as “Other Income” on a 1099-Misc form. Any gains or losses on the sale of the stock are reported as capital gains or losses.
You win a $10 stock and later sell it for $15:
- The $10 stock gift will be reported as “Other Income”.
- The $5 gain will be reported as Capital Gains.
How long do I have to claim my free stock?
Eligible accounts must claim the free stock within 60 days once the claim button is available.
How long does the free stock take to show on my account once it is claimed?
The free stock will be deposited to the account within approximately a week after the stock is claimed. The cash value of the free stock may not be withdrawn for 30 days after it is claimed.