How to Buy Your First Stock on Robinhood
Opening a Robinhood account and funding it
To buy stocks on Robinhood, you first need to download the app or visit the website, create an account with your email address, and pass their identity verification. Robinhood will ask for your Social Security number, date of birth, and address — this is standard for any brokerage and required by law. The verification usually takes a few minutes.
Once your account is open, you need to fund it. Link a bank account through the app by entering your routing and account numbers, or use a debit card. Robinhood transfers money from your bank account to your brokerage account, where it sits as cash ready to invest. The first transfer typically takes three to five business days to complete, though Robinhood offers instant transfers for some account types (you can buy stocks while the transfer is processing, but you cannot withdraw the money until it settles).
You must be at least 18 years old and a U.S. citizen or permanent resident to open an account. If you are under 18, a parent or guardian can open a custodial account on your behalf, though the rules and features differ slightly.
Key Takeaways
- You need a funded Robinhood account before you can buy any stock; link your bank account or debit card and wait for the money to arrive.
- Search for a stock by its ticker symbol (the short code like AAPL for Apple), not by company name, to find the right security quickly.
- Enter the number of shares you want to buy and review the total cost before you confirm the order.
- Your order executes during market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays), and you own the shares immediately after it fills.
- Robinhood charges no commission on stock trades, but you still pay the bid-ask spread — the difference between what buyers and sellers are willing to pay.
Finding and searching for a stock to buy
Open the Robinhood app and tap the search icon at the bottom of the screen. Type the stock's ticker symbol — the short code that identifies each stock. Apple is AAPL, Microsoft is MSFT, Tesla is TSLA. If you do not know the ticker, you can search by company name, but the ticker is faster and more precise because some company names are similar.
The stock's page will show you the current price, a chart of recent price movement, company information, and news. Scroll down to see the bid and ask prices — the bid is what buyers are offering to pay right now, and the ask is what sellers are asking. When you buy, you pay the ask price (or close to it). When you sell, you receive the bid price. The difference between them is called the spread, and it is the real cost of trading beyond the zero commission Robinhood advertises.
Take time to read the company information and recent news before you decide to buy. Robinhood's app shows you what other users are discussing about the stock, but remember that social media chatter is not research — it is opinion.
Placing a buy order
Once you have found the stock you want, tap the "Buy" button on its page. Robinhood will ask you how many shares you want to purchase. Enter the number and review the total cost — if you want to buy 10 shares of a stock trading at $150 per share, the cost will be roughly $1,500 plus the spread. Make sure you have enough cash in your account to cover it.
Robinhood defaults to a market order, which means your order will execute at the current market price as soon as the market is open. This is the simplest way to buy for most people. If you want more control — for example, to buy only if the price drops to a certain level — you can tap "Order Type" and choose a limit order instead. A limit order lets you set a maximum price you are willing to pay; if the stock never reaches that price, your order will not fill.
Review the order one more time. The app shows you the number of shares, the estimated total cost, and any fees. Tap "Review Order" and then "Submit Order" to confirm. Your order is now in the system.
When your order fills and what happens next
If you placed a market order during market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays when the stock market is open), your order will fill within seconds. You will see a confirmation on the app, and the shares will appear in your portfolio immediately. The cash in your account will decrease by the amount you spent.
If you placed your order outside market hours or on a weekend, it will wait in the queue and execute when the market opens the next trading day. Limit orders may take longer or may not fill at all if the stock never reaches your target price.
Once you own the shares, you can hold them as long as you want, sell them anytime the market is open, or set up alerts to notify you if the price moves. Robinhood shows your shares in the "Stocks" tab of the app, along with how much you paid for them, their current value, and your gain or loss.
Understanding Robinhood's account types and restrictions
Robinhood offers a standard individual brokerage account for most people. If you plan to trade frequently — buying and selling the same stock multiple times in a short period — you may run into the pattern day trader rule. This is a federal rule, not a Robinhood rule: if you make four or more day trades (buying and selling the same stock on the same day) within five business days, your account is flagged as a pattern day trader and you must maintain a minimum balance of $25,000. If your account falls below that, you cannot day trade until you add more money.
Robinhood also offers a premium subscription called Robinhood Gold, which gives you access to margin (borrowed money to invest with) and other features. You do not need it to buy stocks — a standard account is enough.
If you are a U.S. citizen living abroad or a non-citizen, Robinhood may not accept your account. Check their current requirements on their website before you start the signup process.
Costs and fees you should know about
Robinhood charges zero commission on stock trades, which means you do not pay a flat fee per transaction like you would at some other brokerages. However, you still pay the bid-ask spread — the difference between what buyers and sellers are willing to pay. On a liquid stock like Apple, the spread might be a few cents per share. On a less-traded stock, it could be much wider. This spread is the real cost of buying and selling, and it is built into the price you see.
If you hold stocks that pay dividends (quarterly or annual payments to shareholders), Robinhood deposits the dividend into your account automatically. You do not pay a fee to receive it.
If you use margin (borrowed money), Robinhood charges interest on the borrowed amount. If you transfer money out of your account, there is no fee. If you close your account, Robinhood does not charge you for that either.
Selling stocks and withdrawing your money
To sell a stock, open the app, go to your portfolio, tap the stock you want to sell, and tap "Sell." Enter the number of shares and choose your order type (market or limit). Review and confirm, just as you did when buying. Your order will execute during market hours, and the cash will return to your account.
To withdraw money from your account, tap the account icon, select "Transfers," and choose "Withdraw." Enter the amount and select your bank account. The money will transfer back to your bank within one to three business days. If you have unsettled cash (from a recent sale or deposit), you may not be able to withdraw it immediately — Robinhood will tell you when it becomes available.
Frequently Asked Questions
Can I buy fractional shares on Robinhood?
Yes. Robinhood lets you buy partial shares, so you can invest a specific dollar amount rather than buying whole shares. If you have $100 and a stock costs $150 per share, you can buy 0.67 shares instead of waiting to save $150. This is useful for expensive stocks or for spreading a fixed amount of money across multiple companies.
What happens if I buy a stock and the price drops immediately?
You own the shares at the price you paid, and the value changes with the market. If the price drops, your account shows a loss on paper, but you have not lost money unless you sell. You can hold the shares and wait for the price to recover, sell and lock in the loss, or buy more shares at the lower price. The choice is yours.
Can I set up automatic purchases on Robinhood?
Robinhood does not offer automatic recurring purchases like some other brokerages do. You must manually place each buy order through the app. If you want to invest a fixed amount regularly, you will need to do it yourself each time.
Is my money safe on Robinhood if the company fails?
Your stocks and cash are protected by the Securities Investor Protection Corporation (SIPC) up to $500,000 per account if Robinhood fails. This is a federal protection that applies to all brokerages. Your stocks are held in your name, not Robinhood's, so they belong to you regardless of what happens to the company.
Can I buy stocks before or after market hours?
Robinhood offers extended-hours trading, which lets you place orders before the market opens (4 a.m. to 9:30 a.m. Eastern) and after it closes (4 p.m. to 8 p.m. Eastern). However, extended-hours trading has wider spreads, lower volume, and more price swings, so it is riskier for beginners. Stick to regular market hours until you are comfortable with how stocks work.