Interactive Brokers: Get A 1% Bonus

The Offer

• Interactive Brokers is offering a referral bonus of 1% in $IBKR when being referred (person referring receives $200) up to $1,000 in $IBKR. For example for every $100 in net deposits of cash or other assets you’ll receive $1 in $IBKR.

The Fine Print

• Under the Program, selected account holders (“Referring Accounts”) of one of the Interactive Brokers Group of companies (collectively, “IBKR”, “we” or “us”) may invite other individuals to open a new individual or joint brokerage account with us, or IBKR may at its sole discretion invite selected persons to participate in the Program (“Referred
  Account”).
• Subject to the terms and conditions described below, the owner of the Referred Account will receive $1 worth of Class A common stock of Interactive Brokers Group, Inc. (“Shares”) for each $100 (or its equivalent in another currency) in net deposits of cash or other assets to the Referred Account during the first year following the date of the first deposit into the Referred Account (“Award Period”). The maximum “Net Value Awarded” you may receive is $1,000 in Shares (see Net Value Awarded defined below). You may only open one (1) Referred Account (whether a joint or individual) that is eligible to receive Shares.
• You are eligible to receive Shares if: (i) you were not an account holder of an individual or joint account with IBKR at any time between October 1, 2019 and the date of receipt of the referral invitation from a Referring Account (unless such requirement is waived at IBKR’s sole discretion) and (ii) following receipt of that referral invitation, you apply for (using the instructions provided in the referral invitation) and are approved a new IBKR brokerage account (individual or joint accounts only), subject to IBKR’s eligibility requirements and other terms and conditions, including the applicable Customer Agreement  2 for the relevant IBKR affiliate offering the account (for IBKR Customer Agreements, see https://www.interactivebrokers.com/en/index.php?f=1552).
• We will grant Shares to your Referred Account based on cash or the net fair marketvalue of assets deposited into the Referred  Account (“Deposit Value”), with $1 worth of Shares granted for each $100 in Deposit Value. We will remove Shares from your Referred Account (first in, first out) based on cash or the net fair market value of assets withdrawn (“Withdrawal Value”), with $1 worth of prior awards removed for each $100 in Withdrawal Value. During the Award Period, cumulative Deposit Value minus Withdrawal Value is the “Net Deposit Value.” Net Deposit Value / 100 is the “Net Value Awarded.” Net Value Awarded cannot exceed $1,000.
• Your Welcome Share Balance will increase upon a deposit into your Referred Account based on the following formula: Number of Shares Awarded = (Deposit Value X .01) / (Closing Price Per Share of IBKR on the day of the deposit).
• Shares awarded to the Referred Account may not be sold, exchanged, transferred, assigned or otherwise disposed of in any manner (including through the use of any derivative instrument) for one year from the award date (the “Anniversary Date”, and collectively, the “Transfer Restriction”); provided that the Transfer Restriction will not apply to a margin call associated with the Referred Account. Any attempt to transfer, sell, exchange, assign or dispose of Shares in violation of the Transfer Restriction is void and you authorize us to reject any such attempt. You agree to own the Shares either until returned pursuant to Section 3 or through the Anniversary Date of each Share awarded. For the avoidance of doubt, prior to the Anniversary Date of any award, any attempt to sell Shares through IBKR or any other broker or to transfer Shares to another broker is a violation of the Transfer Restriction and will not by processed by us. Similarly, Shares may not be used to satisfy any settlement obligations, including those associated with a derivative instrument  (such as a call option) prior to the Anniversary Date. If, prior to the Anniversary Date, either the Referred Account is closed for any reason (including by us for failure to comply with applicable regulatory requirements) or no longer in good standing, any unvested Shares in the Referred Account are forfeit and we shall reclaim these Shares for no additional consideration. Notwithstanding any other Paragraph of this Agreement, if you die prior to the Anniversary Date of any Share award, and after receipt of such documentation as may be requested by us, we may waive the Transfer Restriction so as to allow the Shares to be transferred to your heirs.

Our Verdict

Seems like a confusing promotion, main points are that you can’t sell the stock for one year after receiving it. 1% is definitely good as far as brokerage bonuses go but obviously there is a lot more risk involved in this offer as the IBKR share price might drop significantly.

Hat tip to reader calwatch