Yes, you can buy bonds on Robinhood, but the selection is limited to corporate and Treasury bonds

Robinhood lets you buy individual bonds directly through its platform, but it is not a bond-focused broker. You can purchase corporate bonds (debt issued by companies) and Treasury bonds (debt issued by the U.S. government), but the number of bonds available is much smaller than what you would find at a traditional brokerage like Fidelity or Schwab. Municipal bonds and bond funds are not available on Robinhood.

The bonds you can buy are real securities — you own them until maturity or you sell them. Robinhood does not charge a commission to buy or sell bonds, which is the same fee structure it uses for stocks. However, the bid-ask spread (the difference between what you pay and what you could sell for immediately) can be wider on Robinhood than on other platforms, which means you may pay more to buy and receive less to sell.

Key Takeaways

  • Robinhood offers corporate bonds and Treasury bonds but not municipal bonds or bond funds.
  • You pay no commission to buy or sell bonds on Robinhood, but the bid-ask spread may be wider than at other brokerages.
  • Bonds on Robinhood are held in your regular brokerage account, not in a separate bond account.
  • If you want a larger selection or lower spreads, traditional brokerages like Fidelity, Schwab, or Vanguard may be better choices.

How to find and buy bonds on Robinhood

Open the Robinhood app or website and search for a bond by its ticker symbol or issuer name. Treasury bonds are listed by their maturity date (for example, "US Treasury 4.5% due 2033"). Corporate bonds show the company name and coupon rate. When you find the bond you want, tap or click it to see the current price, yield to maturity, and the bid-ask spread.

Tap "Buy" and enter the number of bonds you want to purchase. Robinhood will show you the total cost before you confirm. One bond typically costs $1,000 face value, though some may trade at a premium (above $1,000) or discount (below $1,000) depending on interest rates and credit quality. After you confirm, the order executes during market hours (9:30 a.m. to 4 p.m. Eastern Time on weekdays).

Your bonds appear in your portfolio immediately after purchase. You can hold them until maturity, when you receive the face value back, or sell them anytime the market is open. Interest payments (called coupon payments) are deposited into your Robinhood account on the scheduled dates, usually twice a year.

Treasury bonds versus corporate bonds on Robinhood

Treasury bonds are issued by the U.S. government and backed by the full faith and credit of the United States. They carry virtually no default risk — the government will not fail to pay you back. Treasury bonds on Robinhood range from short-term (a few months) to long-term (up to 30 years). The longer the maturity, the higher the interest rate, but the more the bond's price will move if interest rates change.

Corporate bonds are issued by companies and carry more risk than Treasuries because the company could default (fail to pay). In exchange for that risk, corporate bonds pay higher interest rates. Robinhood shows the credit rating (a measure of default risk) for each corporate bond, usually from agencies like Moody's or S&P. Bonds rated BBB or higher are considered investment-grade; anything below that is considered high-yield or "junk" bonds and carries significantly higher risk.

For a beginner, Treasury bonds are simpler because you do not have to assess company credit quality. Corporate bonds require you to understand what the rating means and whether the extra interest is worth the risk.

Why Robinhood's bond selection is limited

Robinhood does not maintain a large inventory of bonds the way traditional brokerages do. Instead, it sources bonds from market makers — firms that buy and sell bonds in bulk. This means Robinhood may not have every bond you want to buy, and the ones it does have may have wider spreads because Robinhood is not a major player in the bond market.

If you search for a specific bond and Robinhood does not have it, you will see a message saying it is not available. This is common, especially for smaller corporate bond issues. Traditional brokerages have deeper relationships with bond dealers and can access a much larger universe of bonds.

Costs and fees for buying bonds on Robinhood

Robinhood charges no commission to buy or sell bonds. This is a real advantage compared to some older brokerages that charge per-bond fees. However, you still pay the bid-ask spread, which is the cost of trading. If a bond is bid at $995 and offered at $1,005, you pay $1,005 to buy it and receive $995 if you sell immediately — that $10 difference is your cost.

On Robinhood, spreads tend to be wider than on platforms like Fidelity or Schwab, especially for less-traded bonds. A $10 to $20 spread on a $1,000 bond is not unusual. Over time, if you buy and sell many bonds, these spreads add up. For a buy-and-hold investor who plans to keep a bond to maturity, the spread matters less because you will not sell it early.

When Robinhood is a good choice for bonds

Robinhood works well if you want to buy a few Treasury bonds and hold them to maturity. Treasury bonds are standardized and widely available, so spreads are tighter. If you already use Robinhood for stocks and want to add some bonds to the same account, the simplicity of one platform may appeal to you.

Robinhood is less suitable if you want to build a large bond portfolio, frequently trade bonds, or need access to municipal bonds or bond funds. It is also not ideal if you want to ladder bonds (buy multiple bonds with different maturity dates to create steady income) because the limited selection makes this strategy harder to execute.

Alternatives to Robinhood for bond investing

Fidelity, Charles Schwab, and Vanguard all offer much larger bond selections with tighter spreads. Fidelity and Schwab also have no commission on bonds. Vanguard focuses more on bond funds and ETFs than individual bonds, but offers excellent low-cost options if you prefer a fund approach. TD Ameritrade (now part of Schwab) also has a robust bond platform.

If you want to own bonds but do not want to pick individual ones, bond ETFs and mutual funds are available on Robinhood and every other platform. These let you own a diversified portfolio of bonds with a single purchase and no need to manage individual bond maturities.

Frequently Asked Questions

Do I have to hold a bond until maturity on Robinhood?

No. You can sell any bond anytime the market is open. However, if interest rates have risen since you bought the bond, its price will have fallen, and you may sell at a loss. If interest rates have fallen, the bond's price will have risen, and you may sell at a gain.

Can I buy fractional bonds on Robinhood?

Robinhood does not offer fractional bond purchases. You must buy whole bonds, which typically cost $1,000 face value each (though the actual price may be higher or lower depending on market conditions).

What happens to my bond interest payments?

Coupon payments are deposited directly into your Robinhood cash account on the scheduled dates, usually twice a year. You can then reinvest that money by buying more bonds or other securities, or leave it as cash.

Are bonds on Robinhood FDIC insured?

No. Bonds are securities, not bank deposits, so they are not covered by FDIC insurance. However, they are protected by SIPC (Securities Investor Protection Corporation) up to $500,000 per account if Robinhood fails. Your bonds themselves are held in your name and are not at risk if Robinhood goes out of business.

Can I use bonds in a Robinhood retirement account?

Yes. Robinhood offers IRAs and other retirement accounts where you can buy bonds. The same bond selection and fee structure apply. Bonds held in a retirement account have the same tax advantages as other investments in that account.