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The Robinhood investing app has many interesting features that makes it stand out from other brokers. This article is part of an occasional series at Lean Investments where we answer frequently asked questions about a popular topic related to Robinhood Financial, its app and the people behind it.
Note: Lean Investments is not associated with Robinhood Financial in any way and all of the information provided here is according to the best publicly available information at the time of writing.
We hope this article and all of our Robinhood-related content makes you a more educated investor!
Robinhood Referral Code and Free Gift Stock Giveaway FAQ
How do I get a free gift stock from Robinhood?
In order to get a gift stock (one free share of a stock priced up to $225), you need to utilize the Robinhood referral code and invite a person to download the Robinhood app and open a new account. After this is successfully completed, you and the contact you invited will receive one free share of stock each.
What is a Robinhood referral code?
Robinhood’s referral code is designed to allow you to invite friends and family to the app. As an incentive for doing so, Robinhood will send you a free share of stock and one to the person you have sent your referral code to. Robinhood also uses promotions, such as now at the time of writing, where they are offering not one, but three gift stocks to you and the contact you refer.
It’s very simple to find the code within the Robinhood app: click on the user settings option on the far bottom right of the app (the emblem that looks like a person) and it is the first option you will see on the top under the images is called “Free Stocks.” Click on that option and you will be prompted with two options:
1) Invite contacts – This option allows you to connect your address book and select any contact to send an email or SMS invite to.
2) Share link – This option allows you to generate a unique link which you can then use to manually invite any contact through your preferred communication channel. This option might be easier if you want to send the link through What’sApp, Instagram or Facebook.
When will I receive my free share of stock?
As soon as the person you have referred downloads the app and creates their account, both you and your friend will receive one share of a selected stock each. The gift stocks will most likely be different for you and the person you refer.
What happens if I don’t receive my free stock after my friend signs up?
Some people on Reddit reported technical difficulties with receiving their free gift stocks even after their friend has downloaded the app and opened an account. Typically you should receive your gift stock within 24 hours. If you do not, you should contact Robinhood to ask them about it at this link.
Why does Robinhood give away free gift stocks?
Robinhood Financial is a master of marketing their app. It’s currently one of the most popular apps in Apple’s App Store at the time of writing and the key to their business success is getting active users on their platform. The Robinhood referral code and free gift stock promotion is just one among many of their tools to incentivize new users to try out the Robinhood app.
What type of stocks are available for free?
Robinhood has a larger variety of stocks eligible for reward stocks in their referral code program. According To Robinhood’s web site:
Each stock is chosen randomly from our inventory of settled shares. The value of the share you receive could be anywhere between $3 and $225, and fluctuates based on market movements. Each stock is selected from our inventory based on the total value and price of each share. Keep in mind that approximately 98% of the participants will receive a reward stock having a value from $2.50 to $10.Invite Friends, Get Stock | Robinhood
What are some of the best stock shares others have received?
We searched the Robinhood Reddit forum to review reports of what others have received to see if some users were getting high quality stocks. This author personally received one share of Zynga when he used his Robinhood referral code, which isn’t terrible but not the best either. Did any Robinhood user land a FAANG stock?
According to multiple reports on Reddit, yes!
Among the free stocks received by users on Robinhood’s Reddit forum which were self-reported by users included:
- Apple (AAPL)
- Microsoft (MSFT)
- Facebook (FB)
Much more commonly reported on Reddit, and as Robinhood itself points out, users received stock shares under $10. The most common Robinhood free stocks reported on Reddit include:
- Zynga (ZNGA) – (I wasn’t alone!)
- Chesapeake Energy (CHK)
- Sprint (S)
- United Airlines (UA)
- Groupon (GRPN)
Can I sell my free share of stock immediately after receiving it?
No, you need to wait for the stock to settle in your account, which can take up to 30 days.
Is there a limit to how many shares I can receive?
Robinhood sets a monetary limit of $500 of gift stock per calendar year, but the good news is that the limit resets each year and you can then invite more friend to join up and receive free shares of stock.
We hope we answered all of the most important questions about Robinhood’s referral code and free gift stock program. Now you know what to expect if you invite a friend to join you on the Robinhood app.