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Understanding rewards

Discover more about customer bonuses from some of the best investment apps on the market offering rewards, deals, and exclusive offers for new Pluto customers. We’ve covered a breadth of providers and reward types, covering different asset classes from stocks and shares to alternatives and beyond.

What is a reward?

In the context of investing and finance, a reward is a bonus offered by investment apps and platforms to customers as a welcome bonus or as an extra benefit for their joining the platform. These bonuses can take various forms and are offered by investment platforms, brokerage firms, or financial institutions to attract new customers and retain current investors.  

What are some common rewards?

Some of the common types of reward bonuses include.

Free share

A reward by way of a complimentary share, or fractional share usually of a US or UK-listed business, depending on the provider offering the reward. 

Cash Bonus

A direct monetary reward credited to the investor's account. It may be a fixed amount or a percentage of the invested sum.

 

Interest Rate Boost

In the context of certain financial products like savings accounts, investors may receive an exclusive increased interest rate as a bonus for maintaining or increasing their investments.

Cashback

A monetary reward credited to the investor's account, after a set period, usually after the customer has fulfilled certain usage or activity criteria.

 

Promotional Gifts

Some investment platforms or brokerage firms offer non-monetary rewards such as an Amazon gift card, electronic gadgets, or other promotional items to encourage users onto their platforms.

Fee Waivers

Investors may receive a bonus in the form of waived fees for a certain period or specific transactions, helping reduce the costs to investors as they build their accounts with certain providers.

Referral Bonuses

 Investors can earn bonuses by referring new investors to a platform. Once the referred person starts investing, both the referrer and the new investor may receive rewards.

 

Where can I find rewards?

 

We’ve created this comparison table dedicated to showcasing platforms that feature rewards, like cashback, a free stock, or another reward for joining through Pluto. Be sure to overlay this information with your own research and be sure to check any offer is valid, as they can change without much notice.

 

Why are rewards offered?

 

Investment platforms may offer rewards for several reasons, and these incentives are often designed to attract and retain customers. Here are some common reasons why investment platforms offer rewards.

Customer acquisition

Offering rewards can be a powerful tool to attract new customers. By providing bonuses, discounts, or other incentives, investment platforms can entice individuals to open accounts and join their platforms.

 

Customer retention

Once customers are onboard, offering ongoing rewards can help retain them. Loyalty programs, cashback incentives, or other perks can encourage customers to stay with a particular platform rather than switching to competitors.

Promotion of specific products

Investment platforms may use rewards to promote specific financial products or services. By offering bonuses or rewards tied to certain investment options, they can encourage customers to explore and invest in those products.

Competitive Edge

 In a competitive market, investment platforms may use rewards as a way to differentiate themselves from others. Unique and attractive rewards can be a deciding factor for investors choosing between multiple platforms.

Marketing and Advertising

Rewards programs serve as a marketing and advertising strategy. Promoting rewards through various channels can attract attention and generate interest in the investment platform.

Behavioural Economics

Understanding principles of behavioural economics, investment platforms may use rewards to influence investor behaviour. Rewards can create a positive association with the platform and encourage investors to make certain types of investments or engage in desired actions.

User Engagement

Rewards can enhance user engagement on the platform. By offering incentives for activities such as referring friends, participating in educational programs, or consistently using the platform, investment platforms can keep users actively involved.

Who gets the reward?

Most platforms tend to offer most of their deals to new customers, although it is not unusual to see rewards for current users of a particular platform. The customer reward strategy is decided upon by the provider and will depend on whether the company is focusing more on customer retention or acquisition.

 

How do I get these rewards?

Criteria, terms, and conditions for rewards vary greatly by provider. This may involve depositing a certain amount or performing a certain task during the sign-up process, within a certain timeframe. Both the reward and criteria are fully decided upon by the investment apps and platforms themselves and can be subject to change. Make sure to check any terms, conditions, and criteria directly with the provider. Also, be aware that some markets and investment assets, like crypto, are prohibited from offering such rewards.

Disclaimer

Please also note, that while we endeavor to keep our content as up-to-date as possible, such providers can make changes quickly to deals, so be sure to double check any deal is still valid and live before making any decision.

Before you open an account

 

It's important for investors to carefully review the terms and conditions associated with any investment reward bonus, as they may have specific requirements or restrictions. Additionally, investors should consider the overall suitability of an investment rather than solely focusing on the bonus offered.

Summary 

 

Interested in learning more about the world of investing but don’t know exactly where to start? We would always recommend practising without any real money before you start. Try the Pluto demo (no real money) environment on the free Pluto app

What is a reward?
Common reward types
Why are rewards offered?
Where can I find rewards?
Who gets the reward?
How do I get rewards?
Disclaimer
Summary
Before you open an account
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