If you’re looking for a new brokerage, consider opening your account with one of these institutions. They’ll pay you a new account bonus on certain account types if you meet minimum deposit requirements and keep your account open for a specified length of time. All promotional data presented is accurate as of March 2024.
Key Takeaways
- With discount brokers cutting client fees and offering $0 trading commissions, the competitive landscape has never been better for individual investors.
- In order to lure in new clients (or steal them from the competition), many financial firms offer financial incentives to those who qualify.
- The rewards might seem high but aren’t great when compared to other banking products.
- New digital-centric brokerages like M1 and TD Ameritrade’s Thinkorswim platform have been growing steadily since their launches.
- You are required to maintain the balance for a period of time, usually a few months, before the reward is issued.
1. Charles Schwab: Up to $1,000 Bonus and 500 Commission-Free Online Trades
Charles Schwab offers a $1,000 referral bonus with a $500,000 deposit into a new Schwab brokerage account. This is the top of their award tier, but the good news is you can still receive a referral bonus for a lesser amount if you deposit less. The bonus tiers are:
- $1,000 if you deposit $500,000
- $500 if you deposit $100,000-$499,999
- $300 if you deposit $50,000-$99,999
- $100 if you deposit $25,000-$49,999
You can also get 500 commission-free online trades for two years when you enroll and make a qualifying net deposit of $100,000 in cash or securities in your account.
2. M1 Finance: Up to $10,000 Bonus and 6 Months of Free M1 Plus
M1 Finance is a relatively new broker but one that has gained significant traction since it opened shop in 2015. Investors using M1 find their website intuitive and easy to understand, and they have good things to say about M1’s ability to customize investment portfolios.
Their bonus structure for new customers works similarly to the Schwab structure above, but it has a higher cap. While Schwab stops at $1,000 if you deposit $500,000, M1 will deposit up to $10,000 as a bonus when you transfer a brokerage or retirement account to a M1 account within 30 calendar days from the sign-up date.
The tiers are as follows:
- $10,000 if you deposit $2 million or more
- $4,000 if you deposit $1,000,000-$1,999,999
- $2000 if you deposit $500,000-$999,999
- $1000 if you deposit $250,000-$499,999
- $250 if you deposit $50,000 – $249,999
Also, you can earn six months of M1 Plus (a $60 value) per referral, each time a friend opens and funds an M1 investment account. And, if your friend deposits $10,000 into their account within the first 30 days, you’ll both get a $100 invest bonus.
Note
Some brokers, like Vanguard, do not offer promotions, instead opting to reward their clients with extremely low-cost funds and zero-commission trading on many of their products.
3. Merrill Edge: Up to $600
Merrill Edge, the investment division of Bank of America, is attempting to entice clients to switch over to their brokerage products. Their offers are in line with most of the other offers here, but they are not as widely used as some of the other powerhouses like Schwab or Vanguard.
Merril Edge’s bonus level is based on the tiers below:
- $600 if you deposit $200,000 or more
- $250 if you deposit $100,000-$199,999
- $150 if you deposit $50,000-$99,999
- $100 if you deposit $20,000-$49,999
At Merrill Investing, you need to make a qualifying deposit within 45 days of opening the account and maintain the balance for at least 90 days. These aren’t great rewards, and you will almost surely see better returns on your principal if you were to invest in the other brokers or by using other strategies like Series I Bonds.
4. Ally Invest: $3,000 Cash Bonus
Available at Ally is an Ally Invest $3,000 Cash Bonus Offer when you open a new Ally Invest account. You must fund your account within 60 days of account opening to earn a bonus based on your deposit amount. The bonuses are higher than Schwab and M1, but you’ll need to deposit even more to reach the highest tier.
- $3,000 if you deposit $2 million or more
- $2,000 if you deposit $1 million to $1.99 million
- $1,200 if you deposit $500,000-$999,999
- $600 if you deposit $250,000-$499,999
- $300 if you deposit $100,000-$249,999
- $250 if you deposit $25,000-$99,999
- $100 if you deposit $10,000-$24,999
Qualifying account openers will receive the bonus cash credit to your account within 10 business days of meeting the promotional requirements. Ally will also credit $75 to help cover transfer fees if you are moving funds or securities from a different brokerage or bank.
Once the account is credited, the bonus and initial qualifying deposit are not available for withdrawal for 300 days after the requirements have been met.
Does TD Ameritrade Have Promotions?
TD Ameritrade does have promotions, and they are similar to the others on this list. You automatically receive $1,000 when you open and find an account through a friend’s referral. The bonus amounts are between $100-$1,000 and are dependent on qualifying deposits from $25,000 to $500,000 or more.
Can Brokers Give Bonuses?
Brokers can give bonuses to their clients, but it’s rare. The bonus structure is used to entice new accounts. Once the broker has your money, they may only issue an incentive if you were to tell them you are switching brokerages.
Which Broker Is Offering a Bonus?
All of the big brokers offer a bonus, but it’s worth noting that the bonus isn’t necessarily that high when you consider the deposit amount required in order to receive it. $3,000 seems like a substantial amount, but if it requires over a million dollars to receive it, that’s a 0.3% return, versus the 5 percent or more returns for government-protected securities that don’t require nearly that amount.
Is It Good to Have 2 Brokerage Accounts?
This depends on your goals. If you want to have a brokerage account for your IRA and a brokerage account to trade options, this makes sense. Not all brokerages treat products the same way and although the competition is fierce between them, some still do certain things better than others. Options traders might prefer the power of the TD platforms, while long-term ETF holders might favor Schwab’s offerings and low-cost ETFs.
The Bottom Line
These promotions aren’t a good way to make a quick buck, and the bonuses are relatively small, often 1% or less of the amount you’re required to deposit. What’s more, in many cases, taxes or commissions will erode the value of your bonus.
An account-opening bonus is, however, a good incentive to give a brokerage, bank, or credit union a closer look if you were thinking about opening a new account anyway. Just make sure the account type you’re opening is the best option for your long-term needs, that you’ll still come out ahead after any fees and that you aren’t depositing money you might need in the near term.
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