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The host offer free domain name alwayz a trap. Why? Because the owner of the free domain is not you, They own the domain name, once you switch to other server. You can't bring it with you.
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That's not always true. There are many hosts now that simply register the domain for you for free as an incentive to sign up with them. In fact, it's almost a requirement now for the shared hosting companies to be competitive. Most of these are registered through a separate registrar (the hosting company acts as a reseller) and can easily be transferred to a new host.