Online stock brokerage firm OptionsHouse has a promotion where new customers* can get a free iPad Mini (16gb WiFi model w/ Retina display, $399 value) if you satisfy the following requirements:
- $10,000 minimum funding required
- Must fund within 30 days of completing application
- Must make 30 commissionable trades ($4.75 each)
- Must complete those 30 trades within 90 days of account funding
- IRA accounts are not eligible
- Must not withdraw to below minimum funding level for 180 days (market fluctuations okay).
*You cannot have a current Optionshouse account or maintained an account with them during the last 30 days.
30 trades times $4.75 a trade is $142.50 in commissions. iPad Mini with Retina 16GB is $399 at Apple store and even $399+ on Amazon. According to the terms, retail values under $600 will not be including on your 1099 form. Seems like a good promo for a new iPad, especially if you’re looking to try out a new brokerage firm and need to make a number of trades anyway to establish your positions.
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Hi Jonathan – I’m considering jumping on this deal, but just have a few questions… Would you trade the full $10k, or just a portion – I’m considering just doing about $2k of it in trades, and leaving the remaining $8k in there. Also, don’t you think they will claim that the “retail value” of the iPad mini is over $600, thus making me get dinged on taxes?? What are your thoughts? Love your blog and thanks!!
@Jason – You can trade however much or little you want, they just count the trades. Their own fine print says the value is $399, so I don’t think that will be a problem either.
@Jonathan & @Kevin – Awesome, thanks for the clarification. Seems like a pretty legit deal. Now I just have to find out how I’m going to make my stock divisions and what I’m going to buy 😉
@Jason
They don’t count include the value of the promotional item on your taxes (they didn’t 2 years ago when I got a kindle from them in a similar promotion). I believe the credit card companies lobbied for your “rewards” to not count as income and thus they are not taxed.
@Kevin – Thanks for the clarification, I really appreciate it. I’m going to have trouble making the 30 trades. I guess I could divide up one stock and purchase a couple of shares at a time, but I think that may be a little suspicious. I also need to do some more research on some stocks to add to the portfolio. We’ll see.
Anything under $600 is not reported to the IRS.
It may depend on what else they report on your 1099 Summary. They reported my new account bonus of $200 on my 1099 (1099misc), along with my Dividends and Broker sells.
That’s true hadn’t thought of that situation. Though it is true anything under $600 total isn’t reported.
Great deal on a iPad it seems to be a very long time since I have bought stock as apparently I used to pay $7 with Scott trade and now $5 seems very expensive. why does it cost so much to buy stocks?
Does not make sense IRA account does not qualify for the IPAD offer–they will still make the same money off my account
So, do I have to keep 10k in their for 180 days?
Yes, per their terms.
Can I transfer my brokerage(6k in cash + 6k in equities) OR do I have to deposit cash from scratch and then do 30 trades?
Equities + cash is fine.
I signed up for this promotion and was notified that I qualified and my iPad is on it’s way. Now, here’s the problem – both my wife and I already own iPads. We do not need a third iPad. Instead, I really could use an iMac.
Does anybody know if I can return the free iPad to Apple (or any other retail store) to get store credit to buy what I really want?
After completing the requirements on this offer, OptionsHouse saysI am unable to get the iPad mini because I participated in another offer over 3 years ago and received a different promotional item then. I have not been a customer of theirs for 3 years. I’m trying to work with their promotions department but be forewarned that they may not honor the promotion as stated.
Trisha – I’d be curious to know what happens in your situation, so please keep us updated on what happens. I’d be curious to know if their final decision is to disallow the promotion, then would they at least refund you the fees they charged to conduct your minimum number of trades? I copied and pasted the full terms and conditions below directly from the OptionsHouse website. I do not see anything in the terms that excludes you from this promotion because you were a customer 3 years ago as long as you opened and funded a new account (not the same account from 3 years ago). It does say only 1 promotional item per household, but that is specific to this iPad Mini promotion – it makes no mention of past promotions.
The free Apple iPad Mini with Retina Display 16 GB promotion applies only to newly funded OptionsHouse customers who initially fund their account within 30 days of completing the application. To be eligible for the Apple iPad Mini with Retina Display 16 GB, you must satisfy both of the following requirements: (1) Fund a new OptionsHouse account with a minimum of $10,000 for a cash or margin account using promo code IPADMINI; (2) Make 30 commissionable trades within 90 days after funding your new OptionsHouse account. Note: Commission-free trades do not qualify toward the 30 trades. Fulfillment of the free Apple iPad Mini with Retina Display 16 GB will occur within 60 days once both requirements are fully satisfied. Limit one promotional item per household please. This promotion may not be combined with other offers and additional restrictions may apply. Only individual or joint OptionsHouse accounts, personal trust accounts, and business accounts are eligible. The promotion is not available for retirement accounts including, among others, IRA, Roth IRA, SEP, and SIMPLE accounts; 401(k) and 403(b) workplace retirement plans; UTMAs and UGMAs; fiduciary accounts (including custodial accounts, estate accounts); college investment trust accounts; and 529 college savings plan accounts. OptionsHouse reserves the right to restrict or revoke this offer at any time. This is not an offer or solicitation in any jurisdiction where we are not authorized to do business. OptionsHouse will provide customer shipping and contact information to Links Unlimited. The Apple iPad Air 16GB Wi-Fi will ship directly to customer from Links Unlimited. This offer is not available to customers outside the U.S.; Links Unlimited will only ship products to addresses within the 50 states, Washington D.C. and APO/FPO military addresses. The Apple iPad Mini with Retina Display 16 GB Wi-Fi comes with a 1-year limited warranty. Warranties are provided by Apple and OptionsHouse is not liable for performance, maintenance or repair. OptionsHouse reserves the right to restrict or revoke this offer at any time. This is not an offer or solicitation in any jurisdiction where we are not authorized to do business. Offer excludes employees of OptionsHouse, LLC or any of its affiliates, current OptionsHouse account holders and any other account holders who have maintained an account with OptionsHouse, LLC during the last 30 days. Taxes related to OptionsHouse offers are your responsibility. Retail values totaling $600 or more during the calendar year will be included in your consolidated Form 1099. Apple does not endorse or sponsor this promotion and has no affiliation with OptionsHouse. © 2014 Apple, Inc. All rights reserved. Void where prohibited. OptionsHouse reserves the right to debit $399 from any account that has received the Apple iPad Mini with Retina Display 16 GB Wi-Fi and has either closed their account or withdrawn assets below the minimum qualifying funding level within 180 days of original funding date. This promotion expires 06/30/2014.
Tommy Z – I have the same terms verbiage and made the same argument. And it is a new account this time. My old account was closed 3 years ago. The promotions department is supposed to contact me so I’m still waiting to talk to them directly.
‘Bad Faith’ – Just got the same BS remark. “You participated in a promotion 2yrs ago; therefore we do not honor this Ipad promotion.” I don’t really even want an Ipad but it incentivized me enough to open a new account with $10k (with expectation to place 30 commissionable trades).
Like the others above, I read and followed the promotional guidelines. After opening and contributing to my account I asked Optionshouse to confirm that the promotion was added before I began trading. Unfortunately, the kind associate informs me applying for the Ipad promotion (when I had previously used another promotion (2yrs ago)) was considered opening the account in ‘bad faith’. Now that my blood is boiling, I’ll be utilizing my morning and afternoon commute to contact their promotional department and restate my case.
It’s always comforting to know your brokerage house can’t seem to follow their own promotional guidelines. If the disclaimer specifically stated, “Not available to current or prior Optionshouse customers”, I would simply move on since the promotion couldn’t apply to me. Apparently earning back prior clients is of no importance.
Status: Currently frustrated and will be advising trading buddies and others to switch out of or avoid Optionshouse.
Just completed the 30 trades – I bought and sold SIRI (bought 2 shares each 15 times and then sold them in the same blocks for virtually the same price, so nothing was lost). I’m assuming that both the buy/sell trades will be applicable, as they’re both commissionable trades? My account value is now $9,857.30. I guess I need to leave it in there for 180 days and then wait for the iPad. Am I missing something here??! $142.70 plus 10 min of my time is not bad for an iPad.
Completed 30 (15 buy/15 sell) trades this morning – Bought all SIRI, in blocks of around 1-3 shares each. Ended up selling them back for almost the exact same price. I’m assuming that all of these trades will qualify? Also, I’m hoping they won’t try to give me crap about it, but we’ll see. My Option House balance is now $9857.30.. $142.70, plus 10 minutes of my time isn’t bad for an iPad! Am I missing something here??!!