Quick Facts About the Robinhood Transfer Bonus
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- Robinhood allows you to trade event contracts on multiple prediction market categories.
- You can transfer your assets from another trading site to Robinhood.
- Robinhood offers a bonus for transfers that meet its requirements.
- One such bonus is its Individual Retirement Accounts (IRAs) transfer match offer.
A Quick Look at Robinhood’s Services
Robinhood started as an investment app, but it now offers prediction markets where you can trade event contracts based on the “Yes” or “No” outcomes of real-life events. Robinhood event contracts are priced between $0.01 and $0.99, with pricing determined by market expectations. Basically, the higher the price of a contract, the more likely it is to occur and vice versa.
So let’s say you’re into Robinhood sports predictions and you find an event contract worth $0.70. This just means that Robinhood traders believe that the event is 70% likely to occur. However, this might change based on the orders placed by other traders.
Since Robinhood runs on a peer-to-peer trading model, you can only trade contracts if there’s a counterparty with a different position from yours. If your prediction is correct, the contract settles at $1.00, but if it isn’t, your contract expires at $0.00.
The Robinhood fees for trading contracts brings a $0.01 commission for each contract you trade.
I enjoyed trading on Robinhood because it offers multiple prediction markets for contracts on crypto, entertainment, health, climate, and economics. Its prediction markets categories cover several topics, and I found the Robinhood election predictions category to fun among other options. The site is regulated by the Commodity Futures Trading Commission (CFTC) and offers great usability, responsive support, and a range of reliable payment methods, among other features.
How the Robinhood Transfer Bonus Works
Robinhood supports full and partial account transfers, and its Automated Customer Account Transfer Service (ACATS). It offers its new and existing traders a bonus for successfully transferring their eligible assets. The eligible assets are:
- Stocks
- ETFs
- Options contracts (not expiring within 7 days)
- Cash balances
- Margin balances and open short positions (only for a margin-enabled Robinhood account)
Robinhood also offers to reimburse you if the brokerage you’re transferring from charges a transaction fee. With this incentive, you can get up to $75 for transfers of $7,500 or more (per account type and brokerage). However, to receive this incentive, you’d need to provide the support team with proof of payment.
How to Transfer Your Account to Robinhood
Having shown you how Robinhood works and its ongoing transfer bonus offer, here are the steps you’d have to take to transfer your account:
- Step 1: Log in to the app and select “Retirement” from the “Menu” (icon with three bars) or “Settings” (a gear icon). Ensure that you have basic information about the brokerage account you’re transferring.
- Step 2: Go to “Actions” and select “Transfer”.
- Step 3: Follow the prompts to select the type of transfer (Traditional or Roth IRA) and the brokerage you’re transferring from.
- Step 4: Provide your account details to submit the transfer. You could also contact the brokerage that holds the external IRA to submit the transfer request.
Once you’ve completed the process, wait for your assets to be transferred to your Robinhood IRA. If you were charged a transfer fee, contact the Robinhood support team and provide documentation from your former brokerage with details of the fee charged. As soon as the provided documentation has been verified, you’ll receive your reimbursement fee (up to $75).
Here Are My Top 3 Tips to Note
Here are three tips that should help you get the most out of the rewards that Robinhood offers for account transfers:
Check Out the Transfer Bonus Eligibility
By this, I mean do your due diligence. First, ensure that the assets you want to transfer are supported by Robinhood and eligible for the transfer bonus. That’s because you won’t receive the transfer match offer if the assets you’re transferring don’t settle. Second, ensure you provide the correct account details for the account you’re transferring to.
Trade Event Contracts With a High Volume
Not all prediction markets or contracts at Robinhood are the same; they have varying trading volumes. I recommend sticking to contracts with high-volume trading activities because they are easier to trade.
Here’s a quick look at the dos and don’ts of using Robinhood’s transfer offer.
| Do’s | Don’ts |
|---|---|
| Trade high-volume event contracts | Enter asset details without confirming them |
| Get a Robinhood subscription | |
| Confirm the eligibility of your assets before transfer. |
Pros and Cons of Claiming a Robinhood Transfer Bonus
Before I wrap up this guide, here’s a quick look at the pros and cons of claiming your transfer bonus:
Pros
- It’s hassle-free
- Transfer fee reimbursement
- 2% match available
Con
- Dependent on settlement time
Conclusion – It’s Easy to Claim a Robinhood Transfer Bonus
I found only one type of transfer reward at Robinhood. It’s called the IRA match, and it’s easy to claim. Simply transfer your account to Robinhood, wait for the transfer to settle, and claim the bonus by bringing your account over to Robinhood. The site also offers a reimbursement for the transaction fee you were charged when transferring.
