Is it crazy to transfer a $12M portfolio to Robinhood for the 2% bonus?
I have a ~$12M portfolio of mostly index funds at Fidelity. I rarely trade and mostly buy and hold for the long term.
I saw Robinhood is offering a 2% bonus if you transfer in an account with at least $10k of margin. As I understand it, I could add $10k of margin in my Fidelity account, transfer it to Robinhood via ACAT, and hold the securities there for at least 2 years and receive $240k (paid monthly).
This is essentially $240k of "free" money (or $120k after tax). The downside is that I 1) have to switch brokerages and 2) take on some additional risk of trusting Robinhood instead of Fidelity. I know Robinhood is regulated and has SIPC insurance, but IIUC the latter only covers $500k.
Is it silly to even be considering this?