What Robinhood's free stock offers actually are
Robinhood offers free stock to new account holders through a program called Robinhood Rewards. When you open a brokerage account, you receive one free share of a randomly selected company. The value of that share ranges from roughly $5 to $200, depending on which company you receive. You own the stock outright — you can hold it, sell it, or trade it like any other share in your account.
The free stock is not a loan or a promotional credit that expires. Once it lands in your account, it is yours to keep or dispose of as you choose. Robinhood does not charge you to receive it, and there are no hidden fees attached to the offer itself.
Robinhood also runs a referral program where existing users can send a link to friends. When someone opens an account through your link, both you and the new account holder receive a free share. The mechanics are the same: one random stock per person, value between $5 and $200.
Key Takeaways
- Robinhood gives one free share to every new account holder, worth between $5 and $200, with no expiration date or strings attached.
- The stock you receive is randomly selected by Robinhood and you cannot choose which company you get.
- You can sell the free stock immediately, hold it long-term, or trade it like any other share in your account.
- Robinhood's referral program gives both the referrer and the new account holder one free share each when someone opens an account through your link.
- Opening an account requires identity verification and a valid Social Security number, but there is no minimum deposit required to receive the free stock.
How to receive your free stock when opening an account
To get the free stock offer, you must open a new brokerage account with Robinhood. Visit the Robinhood website or download the mobile app, then select the option to create an account. You will be asked to provide your name, email address, date of birth, and Social Security number. Robinhood uses this information to verify your identity and comply with federal regulations.
After you complete identity verification, your account is active. The free stock is deposited into your account automatically — you do not need to take any additional steps to claim it. You will see the share appear in your holdings within a few minutes to a few hours. The stock ticker and number of shares will be listed in your account, and you can view its current price and performance just like any other holding.
There is no minimum deposit required to receive the free stock. You do not have to fund your account with your own money to keep the free share. However, if you want to buy or sell other stocks, you will need to have cash available in your account.
What you can do with the free stock
Once the free stock appears in your account, you have full control over it. You can sell it immediately and withdraw the proceeds as cash, or you can hold it indefinitely. There is no lock-up period or waiting requirement — Robinhood does not restrict when or how you use the share.
If you want to sell, open the stock's detail page in your account and tap or click the sell button. You will see the current market price and can confirm the sale. The cash from the sale lands in your account's cash balance, which you can then use to buy other stocks, transfer to your bank, or leave sitting in your account.
You can also hold the stock and watch it grow, or use it as part of a larger investment strategy. Some people treat the free share as a way to start learning how stock ownership works without risking their own money. Others sell it immediately and use the cash for something else. Robinhood places no restrictions on either approach.
How the referral program works
If you already have a Robinhood account, you can share a personal referral link with friends and family. When someone opens a new account using your link, both of you receive one free share. The process is straightforward: find your referral link in the Robinhood app (usually under Account or Settings), copy it, and send it to someone you know.
The person who receives your link clicks it and opens a new account following the same steps as any other new user. Once their identity is verified and their account is active, both accounts receive a free stock. There is no limit to how many people you can refer, so theoretically you could receive multiple free shares through referrals.
The free stocks from referrals follow the same rules as the initial offer: they are randomly selected, worth $5 to $200, and yours to keep or sell immediately. Robinhood does not charge you or the person you refer for using the referral link.
Restrictions and things that disqualify you
Robinhood's free stock offer is available only to new account holders who have never had a Robinhood brokerage account before. If you previously opened and closed an account with Robinhood, you are not may be able to access for the offer on a second account. The company also restricts the offer by location — it is available in all 50 U.S. states, but not to international users or people without a valid U.S. Social Security number.
You must be at least 18 years old to open a brokerage account. Robinhood will not open an account for minors, even with parental permission. If you are under 18, you cannot receive the free stock offer.
The free stock offer is not available if you sign up through certain promotional channels or if Robinhood suspects fraudulent activity. For example, if you open multiple accounts using different identities or email addresses to collect multiple free stocks, Robinhood may cancel the accounts and forfeit the shares. The company monitors for this kind of abuse.
Tax implications of free stock
The free stock you receive from Robinhood is considered taxable income by the IRS. The value of the stock on the day it was deposited into your account is treated as ordinary income, and you may owe federal income tax on that amount. If you received a share worth $75, for example, that $75 is income you must report.
When you eventually sell the stock, you will also owe capital gains tax on any profit or loss from the sale. If you sell the $75 share for $85, you have a $10 short-term capital gain. If you sell it for $70, you have a $5 loss, which may offset other gains.
Robinhood does not issue a tax form for the free stock offer, so you are responsible for tracking the value and reporting it yourself. Keep records of the date you received the stock, its value on that date, and the date and price when you sold it. This information will help you calculate your tax liability accurately.
Frequently Asked Questions
Can I get the free stock without funding my account?
Yes. Robinhood deposits the free stock into your account automatically after identity verification. You do not need to deposit any of your own money to receive it or to keep it in your account. However, you will need cash in your account if you want to buy additional stocks.
What if I do not want the stock Robinhood gives me?
You can sell it immediately. Open the stock detail page, tap or click sell, and confirm the transaction. The cash from the sale will be available in your account right away. There is no penalty for selling the free stock.
Can I refer the same person twice to get two free stocks?
No. Each person can only open one new Robinhood account and receive one free stock through the referral program. Once someone has an account, referring them again will not generate another free stock for either of you.
Do I have to report the free stock to the IRS?
Yes. The value of the free stock on the day you received it counts as taxable income. You should track this amount and report it on your tax return. When you sell the stock later, you will also owe capital gains tax on any profit.
What happens if I close my account after getting the free stock?
You keep the free stock and any proceeds from selling it. If you close your account, Robinhood will transfer any remaining cash balance to your bank account. The free stock offer is yours to keep regardless of whether you continue using Robinhood.