Ok, there seems to be a million free trading stock platforms (I think I may have all of them)...all offering free stock promotions to download the app and become a member. But during all my research, the best stock app promo has to be Tastyworks.
If one simply downloads their app (link above) and funds their account with $2K, they get either 100 Free shares of stock or 10 Free option contracts. This offer expires on 12/31/2020; so act fast if this is something that interests you.
Assuming one chooses to take the stock:
According to the promotional terms, all stocks will be priced between $1 and $6. The odds of what stock you get are guided by an algorithm structured as follows:
- 70% chance of receiving 100 shares of a stock priced under $2/share (i.e. total value of $100-$200)
- 30% chance of receiving 100 shares of a stock priced over $2/share (i.e. total value of $200-$600)
So overall, the minimum a new member would receive is $100, with the max being $600. Also, it is noted the average value received will be between $200-220. Tastyworks will post the promotional stocks to your account within one week after your account is funded.
So I saw this promotion, did the math, and was of course in. That math says - initial deposit of $2K with a risk free return of somewhere between 5% and 30% with 11% being the expected value; easy choice.
After depositing $2K, I was awarded 100 free shares of GOGO with a current share price of $3.50/share; total value of $350. Clearly, I landed in the top 30% of the algorithm with this reward as my stock was valued at more than $2/share. After receiving this stock, which I have never heard of, it was time to do some research.
Per Robinhood, GOGO engages in the provision of in-flight broadband connectivity and wireless entertainment services. At then end of the 1st sentence, with the pandemic ongoing and air travel in a recession, I decided to immediately sell all my shares (per the illustration below, I sold 100 shares of GOGO at $3.55/share).
Here is where I feel like an idiot. Recently, I took a look at GOGO stock and guess what? With the vaccine soon coming, the stock has taken off. As I speak, GOGO is currently at $12.50/share, which would've meant, my 100 shares would've now been worth $1,250.
Relative to my initial deposit of $2K, if I did not sell, I would be up up 62.5% by doing nothing other than accepting my free stock and sitting there. Oh well, live and learn and never sell free stock!