Beginner Guide 6 min read

Your First Free Share:
Sell, Hold, or Invest?

Platforms like Trading 212 and Freetrade give you a free share just for signing up. But once you've got it, what should you actually do with it? Here's how to think about it.

How Free Share Offers Work

Investment platforms use free shares as a marketing tool to get you to sign up. Here's the typical process:

  1. Sign up using a referral link
  2. Verify your identity (takes a few minutes)
  3. Deposit a small amount (usually £1-10)
  4. Receive a random free share worth between £1 and £100

The share you receive is random — most people get something worth £3-10, but some people land shares worth £50-100. Either way, it's free money.

Option 1: Sell It Immediately

Best for: People who just want the cash.

Most platforms let you sell your free share after a short holding period (usually 1-3 days). Sell it, withdraw the cash, done. This is the simplest option and guarantees you lock in the current value.

Tip: Don't forget to withdraw the deposit you made to qualify. Your profit = free share value + your original deposit back.

Option 2: Hold It

Best for: If you got a share in a company you believe in.

If your free share is in a solid company (e.g., Apple, Microsoft, Tesla), you might want to hold it and see if it grows. The risk is low — it was free — and if the stock goes up, you profit even more.

The downside? Stocks can go down too. That £10 free share could become worth £5. But since it cost you nothing, the downside is purely opportunity cost.

Option 3: Reinvest Into a Tracker Fund

Best for: People who want to start investing properly.

This is our recommended approach. Sell your free share and use the proceeds to buy into a global index tracker fund (like Vanguard FTSE All-World or S&P 500). Here's why:

  • Diversification — Instead of owning one random stock, you own a tiny piece of thousands of companies
  • Historical returns — Global index funds have averaged 8-10% per year over the long term
  • Zero effort — Buy and hold. No research needed. Set and forget.
  • Compound growth — That £10 free share, invested in an index fund averaging 8% per year, would be worth ~£22 in 10 years. Stack multiple free shares and you've got a real start.
Our favourite: If you're on Trading 212, you can buy fractional shares in Vanguard S&P 500 ETF (VUSA) with zero commission. Even £5 gets you started.

Where to Get Free Shares Right Now

Trading 212

Up to £100

Sign up to Trading 212 using a referral link and deposit at least £1. You'll receive a free fractional share worth up to £100. You can sell it immediately or hold it.

Get free share →

Freetrade

Up to £100

Open a Freetrade account using a referral link. Fund your account and receive a free share worth up to £100. Sell it, keep it, or reinvest.

Get free share →

InvestEngine

£25 bonus

Open an InvestEngine account and invest at least £100. Receive a £25 bonus. Great for passive index fund investing with zero fees on their managed portfolios.

Get free share →

Tax Implications

Good news: you probably don't need to worry about tax. In the UK, you have a Capital Gains Tax allowance of £3,000 per year (2025/26 tax year). Unless your free shares have somehow grown into thousands of pounds of profit, you won't owe anything.

If you use a Stocks and Shares ISA (available on most platforms), all gains are completely tax-free regardless of amount.