Lately, it seems like even stock brokers are getting into the holiday spirit because like a retailer, they are having their version of a sales event in all those sign up bonuses.
- TradeKing is giving everyone who signs up through a special link $50 if they fund their account with $2,500 and make at least one trade
- OptionsHouse is giving out 100 commission free trades for any new account owner.
However, unlike buying a product, most of us already use an online broker and have no reason to sign up for another. Is it really worth the hassle?
Margaret sent me an email last night asking this very question:
Have you signed up for a TradeKing account to take advantage of the free $50 [they are giving away]? I’m undecided, since it seems redundant to have two different accounts….what do you think?
Margaret, I already own a TradeKing account so I would not be eligible for this promotion. But if I were in the same situation, I would only take advantage if I’m interested in seeing what TradeKing has to offer. $50 for free is always good, but remember that you have to make a trade and fund the account with $2,500 which is a commitment of time and money. The funds are still yours (it’s not like you are giving it away or something) but never let $50 persuade you to make a move if you weren’t considering TradeKing in the first place. Do it because:
- You already heard of the online broker and you want to see if switching over to them is beneficial.
- Have the time to really look into what the online broker has to offer.
- Be willing to make an investment as if you didn’t have an incentive.
- Have the funds to meet the requirement (in TradeKing’s case, it’s $2,500)
Don’t do it if:
- You just want the money.
- You don’t plan on even considering the online broker.
- You don’t have a plan on how to fund the account BEFORE you sign up because chances are good that you never will.
In short, these sign up bonuses are icing on the cake if you were going to check them out anyway. Otherwise, it’s a big waste of time and money for yourself as well as the online broker in question.
Additional Information on the Sign Up Bonuses
- TradeKing $50 – Sign up for an account and get $50 as long as you fund the account with $2,500 and make at least one trade within 30 days of account opening. It’s only available through this following special promotional page (Get $50 when You Open a TradeKing Account Today)
- OptionHouse 100 Free Commission Trades – New customers can get up to 100 free trades during the first 60 days after they fund it with a minimum of $3,000. Account owner must enter promotion code FREE100 in the sign up process available through to the following link (Click Here to the Signup Page) to be eligible.
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{ 7 comments… read them below or add one }
I’ve noticed the flurry of offers from online brokers as well. More often than not, it’s like an invitation to a gambling casino. They’ll tempt you with the $50 free “chip” until you get hooked and trade away your portfolio.
Times like this are GREAT for brokers. Volatility means people are just wigging out buying and selling. That’s party of the reason why Wall St. profits are likely to be strong.
Nothing wrong with punting your portfolio online. Just don’t get carried away.
FS
I thinking the casino analogy is a little harsh because many of us already have online broker accounts and the requirements (in TradeKing’s case) is only 1 trade within a month after you fund the account so we may or may not be doing that amount of trades already.
However, I want to make sure that everyone knows why they are opening an account, and not get tempted to open one just because there’s a bit of free money since the advertisements everywhere these days.
It’s maybe because of what I’ve seen from friends and peers who’ve lost a lot of money trading online. One acquaintance literally lost like $200,000 trading, and another person who is a talented piano teacher decided to QUIT his job b/c he thought he was so good at trading. He lost a lot of money too.
Once you’ve got one account, they don’t need another, but since there’s a carrot, they join.
Forgive me as I’ve been tainted by my surroundings, and from my own experience. I’ve traded like a banshee before and have lost $10,000+ easily on trades.
I just want everybody to be careful, that those clicks of a button are real not a game.
Best
Yikes. Hopefully, your friends are back on their feet and thinking about the bright future ahead of them.
What do you think about free $25, $50, and $100 bonuses for checking and savings account? I know ING always has their referral bonus, but I’ve seen Bank of America, Chase, and others offer a decent amount of money to open and use a checking account. For $50, is it worth it to change your direct deposit option? Or to use a debit card 10 times? Why not link it to Paypal and send a friend some penny transactions? Or is it not worth the hassle?
It’s the same thing with checking and saving accounts. If you want to try a new bank out to possibly switch, then sign up an account by all means, but $50 is hardly justification to have ANOTHER checking account that will be doing nothing because more accounts mean more management.
$50 is not worth the time and effort in depositing money, waiting for it to clear, making a trade, collecting, cashing out, etc. Hassle.