5 Broker Deals That Pay You to Open an Account

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5 Broker Deals That Pay You to Open an Account

Consider creating an account with one of these firms if you’re searching for a new brokerage. If you satisfy the minimum deposit criteria and keep your account active for a particular period of time, they will award you a new account bonus on certain account types. All promotional data is current as of May 2022.

Key Takeaways

  • With bargain brokers slashing customer costs and providing $0 trading charges, the competitive environment for individual investors has never been better.
  • Many financial organizations provide cash incentives to people who qualify in order to attract new customers (or steal them from the competitors).
  • The benefits may seem to be large, but they aren’t when compared to other banking programs.
  • Since their debuts, new digital-centric brokerages like as M1 and TD Ameritrade’s Thinkorswim platform have grown steadily.
  • You must keep the balance for a certain amount of time, generally a few months, before the prize is delivered.

1. Charles Schwab: $100+ Bonus or 500 Commission-Free Trades

With a $500,000 investment into a new Schwab brokerage account, Charles Schwab is providing a $1,000 referral incentive. You will also get 500 commission-free deals. This is their highest reward tier, however you may still get a referral bonus if you invest less. The bonus levels are as follows:

  • $1,000 if you deposit $500,000
  • If you invest $100,000-$499,999, you will get $500.
  • If you invest $50,000-$99,999, you will get $300.
  • If you invest $25,000-$49,999, you will get $100.

For all customers, Schwab also provides unlimited commission-free online trading on most equities and exchange-traded funds (ETFs). After you make the deposit, you should get your referral incentive within two weeks.

2. M1 Finance: First Year Free and $2,500 Transfer Bonus

M1 is a relatively young broker that has acquired considerable attention since its inception in 2015. Investors that use M1 believe their website to be straightforward and simple to use, and they praise M1’s capacity to personalize investment portfolios.

Their bonus system is identical to that of Schwab, although it has a greater cap. While Schwab only gives you $1,000 if you deposit $500,000, M1 will give you $2,500 if you move more than $1 million in assets or securities. However, as compared to Schwab, their lowest categories are a little less generous. They are as follows:

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  • If you deposit $1 million or more, you will get a $2,500 bonus.
  • If you deposit between $500,000 and $999,999, you will get $1,000.
  • If you deposit between $250,000 and $499,999, you will get $500.
  • If you invest $100,000-$249,999, you will get $250.

M1’s strategy is to bring over clients with bigger balances, and although those who do will be rewarded, individuals with smaller accounts may want to evaluate Schwab’s options. However, M1 offers a free first year to new customers, and its digital banking accounts yield 1% APY, which is more than its rivals.

Some brokers, like as Vanguard, do not provide discounts, instead rewarding their customers with exceptionally low-cost funds and zero-commission trading on several of their products.

3. Merrill Edge: Up to $600

Merrill Edge, Bank of America’s investment branch, is aiming to attract customers to move to their brokerage products. Their offerings are comparable to the most of the others on our list, although they are not as extensively utilized as some of the other powerhouses, such as Schwab or Vanguard.

Merril Edge’s bonus level is based on the tiers below:

  • If you invest $200,000 or more, you will get a $600 bonus.
  • If you invest $100,000-$199,999, you will get $250.
  • If you invest $50,000-$99,999, you will get $150.
  • If you invest $20,000-$49,999, you will get $100.

You must make a qualifying deposit within 45 days of creating the account and keep the amount for at least 90 days at Merrill Investing. These aren’t excellent returns, and you’ll almost certainly experience greater returns on your money if you invest in other brokers or use alternative tactics, such as Series I Bonds.

4. Ally Invest: $3,000 Cash Bonus

An Ally Invest $3,000 Cash Bonus Offer is available when you establish a new Ally Invest account. To get a bonus depending on your deposit amount, you must fill your account within 60 days of account establishment. The bonuses are bigger than at Schwab and M1, but you must deposit more to reach the top tier.

  • If you deposit $2 million or more, you will get a $3,000 bonus.
  • If you invest $1 million to $1.99 million, you will get a $2,000 bonus.
  • If you deposit between $500,000 and $999,999, you will get $1,200.
  • If you deposit between $250,000 and $499,999, you will get $600.
  • If you invest $100,000-$249,999, you will get $300.
  • If you deposit between $25,000 and $99,999, you will get $250.
  • If you invest $10,000-$24,999, you will get $100.
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Qualifying account openings will be credited with the bonus cash within 10 business days of satisfying the promotional conditions. If you are transferring cash or securities from another brokerage or bank, Ally will credit you $75 to assist pay transfer expenses.

The bonus and first qualifying deposit are not accessible for withdrawal until 300 days after the conditions have been satisfied.

5. E*Trade: Commission-free Trades and a $3,500 Bonus

If you decide to open an E*TRADE account, there are a few things you should be aware of. To begin, you must fill your account within 60 days by moving money from another account. What makes E*TRADE unique is that they provide a bonus tier for individuals who register a brand new account with the brokerage, as well as a reduced incentive structure if you already have accounts with the brokerage.

E*TRADE offers credits for cash or securities within 60 days after account opening, depending on external deposits to the account. After the 60-period, credits are sent within a week. The credit (for a new account) is divided down as follows:

  • If you invest $1.5 million or more, you will get $3,500.
  • If you invest $1 million to $1.49 million, you will get a $2,500 bonus.
  • If you deposit between $50,000 and $999,999, you will get $1,200.
  • If you deposit between $200,000 and $499,999, you will get $600.
  • If you invest $100,000-$199,999, you will get $300.
  • If you invest $50,000-$99,999, you will get $200.
  • If you invest $20,000-$49,999, you will get $100.
  • If you invest $5,000-$19,999, you will get $50.

Remember, these are new account bonuses. If you currently invest with E*TRADE, the incentives are still available, but they are much lower and reward around half of what they would if you opened a new account.

For all customers, E*TRADE provides unlimited commission-free online trading on most stocks and ETFs.

Does TD Ameritrade Have Promotions?

TD Ameritrade does provide deals, which are comparable to others on this list. When you establish and locate an account via a friend’s recommendation, you instantly get $1,000. The bonuses range from $100 to $1,000 and are based on qualifying deposits of $25,000 to $500,000 or more.

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Can Brokers Give Bonuses?

Brokers may provide incentives to their customers, although this is uncommon. The incentive scheme is utilized to attract new customers. Once the broker has your money, they may only offer you an incentive if you notify them you’re changing brokerages.

Which Broker Is Offering a Bonus?

All of the major brokers provide a bonus, but it’s important to note that the bonus isn’t always substantial when you consider the deposit amount necessary to obtain it. $3,000 may seem to be a large sum, but if it takes more than a million dollars to get it, it’s a 0.3% return, compared to the 5% or more yields for government-protected securities that don’t need nearly that much.

Is It Good to Have Two Brokerage Accounts?

This is determined by your objectives. This makes sense if you want a brokerage account for your IRA and another for trading options. Not all brokerages approach goods in the same manner, and despite severe competition, some do some things better than others. Options traders may prefer the TD platforms’ strength, although long-term ETF investors may prefer Schwab’s services and low-cost ETFs.

The Bottom Line

These promotions aren’t a fantastic method to earn a fast cash, and the incentives are often tiny, frequently 1 percent or less of the deposit amount. Furthermore, taxes or commissions will often reduce the amount of your bonus.

An account-opening bonus, on the other hand, is a terrific incentive to check into a brokerage, bank, or credit union if you were planning on establishing a new account anyway. Just be sure the account type you’re starting is the greatest fit for your long-term goals, that you’ll still come out ahead after fees, and that you’re not depositing money you’ll need in the near future.

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