Free share offers from stock brokers
How deposit-and-hold share rewards work, what the free share is usually worth, and the lock-ups to expect.
Updated
The shape of the offer
Stock brokers rarely pay cash bonuses. The standard offer is a free share, or a small basket of fractional shares, for opening an account and depositing a minimum amount. Some add a referral layer that pays another share for each friend who signs up.
Unlike forex bonuses there is usually no trading requirement. The conditions are about the deposit and about holding, not about volume.
What the share is actually worth
When the reward is a random share from a pool, the odds are weighted heavily toward the cheapest names. A promotion advertising shares worth up to a few hundred dollars will, for most people, pay one worth a few dollars.
Treat the minimum value in the terms as the realistic value of the offer. If the broker does not state the odds or the minimum, assume the low end.
Hold periods and selling rules
Expect a lock: you may need to keep the deposit in the account for a set period, hold the share itself for a number of days, or wait before withdrawing the proceeds after selling. Thirty days is common; some offers stretch longer.
The lock is the real cost. You are parking money with a new broker for weeks in exchange for the reward, so judge the offer by whether you would use the account anyway.
Taxes and paperwork
In many countries a free share is taxable income at its value when granted, and selling it later can create a second taxable event. Brokers do not always withhold or warn.
None of this makes the offers bad, but keep the grant confirmation and check how rewards are treated where you live before tax season, not after.