Personal Finance News

Robinhood Offering 1% Brokerage Transfer Bonus

by Kyle BurbankOct 30, 2023

Robinhood has announced a new offer that rewards customers who transfer their other brokerage accounts over to the app.

About the bonus:

Through December 8th, Robinhood customers can earn a 1% bonus on the net value of eligible assets transferred to a taxable (non-retirement) Robinhood account from another brokerage. According to the wording of the terms, it seems that this offer is valid for both existing and new Robinhood customers as long as the brokerage transfer is made within the promotional period. To get started, users can initiate an Automated Customer Account Transfer Service (ACATS) request once they’ve opened a Robinhood account.

There is no cap or limit on this offer. However, in order to retain this bonus, the money transferred into a Robinhood account must stay there for at least two years. If this requirement is not met, the app will charge back a proportional amount of the money. Such a fee would come in addition to any ACATS out fee charged by Robinhood.

This new offer is somewhat similar to one of Robinhood Retirement‘s features. With a Traditional or Roth IRA on the platform, customers can earn a 1% bonus on contributions. Furthermore, this bonus was recently raised to 3% for Robinhood Gold customers. However, in this case, customers must hold eligible funds in their account for five years in order to retain the bonus.

In other news:

Unrelated to the current bonus offer, Robinhood also recently announced that it had become a jersey patch sponsor for the NBA’s Washington Wizards. Starting this season, the trading app’s logo will be displayed on the Wizards’ home and away jerseys. To celebrate the partnership (which currently last through the 2025-2026 season), fans who attended the team’s home opener recieved free Wizards x Robinhood t-shirt.   

My thoughts:

Overall, this could be a good deal for those willing to move their assets to Robinhood. That said, there are some considerations you’ll need to make. First, one downside is that your current brokerage may charge you a fee to transfer your assets. Robinhood will typically reimburse this fee up to $75 — but only for transfers of $7,500 or more. It’s also unclear whether this reimbursement offer is available on top of the bonus.

Additionally, the two-year requirement may be an issue for some investors. Moreover, this wrinkle could limit your ability to pursue other brokerage bonus opportunities in the future (if your assets are tied up at Robinhood). Therefore, you may want to think through the logistics of this deal before moving forward with a transfer.

Of course, if you do decide to claim this bonus, make sure to do so before the current December 8th, 2023 deadline.

Author

Kyle Burbank

Head Writer ~ Fioney

Kyle is the head writer for Fioney. He is a personal finance nerd, constantly looking for new apps and services to test and incorporate into his own financial game plan. In addition to his role at Fioney, he's written for other publications including Born2Invest, Lifehack, and Laughing Place, as well as his own site Money@30. He also creates personal finance and travel-related videos for Fioney's YouTube channel, which has garnered more than 2 million views. Currently, Kyle resides in Springfield, Missouri with his wife of 10 years. Together, they enjoy traveling (including visiting Disney Parks around the world), dining, and playing with their dog Rigby.

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