Record Of Special Events: Should I Grab Those Online Broker Sign Up Bonuses?

Sunday, November 1, 2009

Should I Grab Those Online Broker Sign Up Bonuses?

Lately, it seems like even stock brokers are getting into the holiday spirit because like a retailer, they are having their version of a sales event in all those sign up bonuses.

TradeKing is giving everyone who signs up through a special link $50 if they fund their account with $2,500 and make at least one trade
OptionsHouse is giving out 100 commission free trades for any new account owner.

However, unlike buying a product, most of us already use an online broker and have no reason to sign up for another. Is it really worth the hassle?

Margaret sent me an email last night asking this very question:

Have you signed up for a TradeKing account to take advantage of the free $50 [they are giving away]? I’m undecided, since it seems redundant to have two different accounts….what do you think?

Margaret, I already own a TradeKing account so I would not be eligible for this promotion. But if I were in the same situation, I would only take advantage if I’m interested in seeing what TradeKing has to offer. $50 for free is always good, but remember that you have to make a trade and fund the account with $2,500 which is a commitment of time and money. The funds are still yours (it’s not like you are giving it away or something) but never let $50 persuade you to make a move if you weren’t considering TradeKing in the first place. Do it because:

You already heard of the online broker and you want to see if switching over to them is beneficial.
Have the time to really look into what the online broker has to offer.
Be willing to make an investment as if you didn’t have an incentive.
Have the funds to meet the requirement (in TradeKing’s case, it’s $2,500)

Don’t do it if:

You just want the money.
You don’t plan on even considering the online broker.
You don’t have a plan on how to fund the account BEFORE you sign up because chances are good that you never will.

In short, these sign up bonuses are icing on the cake if you were going to check them out anyway. Otherwise, it’s a big waste of time and money for yourself as well as the online broker in question.

Additional Information on the Sign Up Bonuses

TradeKing $50 – Sign up for an account and get $50 as long as you fund the account with $2,500 and make at least one trade within 30 days of account opening. It’s only available through this following special promotional page (Get $50 when You Open a TradeKing Account Today)
OptionHouse 100 Free Commission Trades – New customers can get up to 100 free trades during the first 60 days after they fund it with a minimum of $3,000. Account owner must enter promotion code FREE100 in the sign up process available through to the following link (Click Here to the Signup Page) to be eligible.

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