5 Brokers That Give You a Bonus for Opening an Account

If you’re in the market for a new brokerage firm, you may want to consider opening an account with one of the following institutions.

These companies offer new account bonuses on certain account types, provided you meet the requirements and keep your account open for a specified period of time.

Here are list of brokers that pay you to open an acount:

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

Charles Schwab is currently offering a referral bonus for individuals who open a new brokerage account with the company. If you make a deposit of $500,000 into your new account, you will receive a $1,000 bonus as well as 500 commission-free trades. This is the highest tier of the referral bonus offered by Schwab, but it is still possible to receive a bonus for deposits of lesser amounts. The following are the tiers of the referral bonus program:

  1. $1,000 if you deposit $500,000
  2. If you deposit $100,000–499,999, you will receive $500.
  3. $300 if you deposit $50,000–$99,999
  4. $100 if you deposit $25,000–$49,999

In addition to the referral bonus program, Charles Schwab also offers unlimited commission-free online trading on most stocks and exchange-traded funds (ETFs) for all clients. Once you make a qualifying deposit into your new brokerage account, you can expect to receive your referral bonus within two weeks. This offer is available to all clients, giving you the opportunity to trade without incurring additional fees.

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

M1 is a newer broker that has gained popularity among investors since it was founded in 2015. Many users appreciate the intuitive and user-friendly website, as well as M1’s ability to customize investment portfolios.

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M1’s referral bonus program operates similarly to Schwab’s, but with a higher maximum payout.

While Schwab’s maximum bonus is $1,000 for a deposit of $500,000, M1 will offer a bonus of $2,500 for a transfer of $1 million in funds or securities.

However, the lower tiers of M1’s referral bonus program are somewhat less generous when compared to Schwab’s. The tiers are as follows:

  1. $2,500 if you deposit $1 million or more.
  2. $1,000 if you deposit $500,000-$999,999
  3. $500 if you deposit $250,000–$499,999.
  4. $250 if you deposit $100,000-$249,999

M1 is targeting investors with larger accounts, offering higher referral bonuses for those who transfer more funds or securities.

While this may be appealing for some, those with smaller accounts might prefer the lower minimum deposit requirements and tiered bonuses offered by Schwab. However, it is worth noting that M1 offers a free first year for new clients and its digital banking accounts offer a higher annual percentage yield (APY) of 1%, which may make it a more attractive option for some investors.

On the other hand, some brokers like Vanguard do not offer promotions, instead focusing on providing extremely low-cost funds and zero-commission trading on many of their products as a way to reward their clients.

3. Merrill Edge: Up to $600

Merrill Edge, the investment arm of Bank of America, is seeking to attract customers to its brokerage offerings. Its promotions are similar to those of other firms, but it is not as popular as some major players such as Charles Schwab or Vanguard.

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

  1. $600 if you deposit $200,000 or more
  2. $250 if you deposit $100,000–$199,999
  3. $150 if you deposit $50,000–$99,999
  4. $100 if you deposit $20,000–$49,999

To be eligible for the incentives at Merrill Investing, you must deposit a certain amount within 45 days of opening an account and maintain that balance for at least 90 days.

These rewards may not be as attractive as those offered by other brokers or alternative investment options such as Series I Bonds, which may provide higher returns on your principal.

4. Ally Invest: $3,000 Cash Bonus

Ally is offering a cash bonus of up to $3,000 when you open a new Ally Invest account. To qualify for the bonus, you must fund your account within 60 days of account opening, and the amount of the bonus is based on the size of your deposit. While the bonuses at Ally are higher than those at Schwab and M1, you will need to deposit more money to receive the highest tier of the bonus.

  1. $3,000 if you deposit $2 million or more
  2. $2,000 if you deposit $1 million to $1.99 million
  3. $1,200 if you deposit $500,000–$999,999
  4. $600 if you deposit $250,000–$499,999
  5. $300 if you deposit $100,000–$249,999
  6. $250 if you deposit $25,000–$99,999
  7. $100 if you deposit between $10,000 and $24,999

If you qualify, you will receive a cash credit bonus in your account within 10 business days of meeting the promotional requirements. Ally will also provide a credit of $75 to help cover any transfer fees if you are transferring funds or securities from another brokerage or bank. Please note that both the bonus and the initial qualifying deposit will not be available for withdrawal for 300 days after the requirements have been fulfilled.

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5. E*Trade: commission-free trades and a $3,500 bonus

If you choose to open an ETRADE account, there are a few important things to be aware of. One of the main things to note is that you must transfer funds from an external source to your ETRADE account within 60 days of opening it.

ETRADE offers a bonus for those who are opening a new account with the brokerage, as well as a discounted bonus structure for those who already have accounts with ETRADE.

In terms of credits, ETRADE offers credits for cash or securities within 60 days of opening an account, depending on deposits from external sources. These credits are typically processed within a week after the 60-day period has passed. The credit amount for a new ETRADE account is broken down as follows:

  1. $3,500 if you deposit $1.5 million or more.
  2. $2,500 if you deposit $1 million to $1.49 million
  3. If you deposit between $50,000 and $999,999, you will receive $1,200.
  4. If you deposit between $200,000 and $499,999, you will receive $600.
  5. $300 if you deposit $100,000–$199,999
  6. $200 if you deposit $50,000–$99,999
  7. $100 if you deposit $20,000–$49,999
  8. $50 if you deposit $5,000-$19,999

ETRADE is offering bonuses for new accounts, which include unlimited commission-free online trading on most stocks and ETFs. If you already have an account with ETRADE, you can still take advantage of these bonuses, although they are reduced and offer about half the rewards of what they would be for a new account. It’s important to note that these bonuses apply to all clients, not just new ones.

Closing Thought

From our research, these are the brokers that will pay you a huge amount for opening an account with them. If you have any questions, you can leave them in the comment section below, and I’ll do my best to attend to them.
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Source: https://www.investopedia.com/articles/active-trading/032015/10-broker-deals-pay-you-open-account.asp

 

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