The basic process: search, choose your amount, and confirm
To buy a stock on Robinhood, you search for the company by name or ticker symbol, decide how many shares you want, and tap the button to place your order. The app shows you the current price, lets you review the order one more time, and then executes it — usually within seconds during market hours. Your shares appear in your account immediately, though the transaction itself settles over the next two business days.
The entire process takes less than a minute once you have money in your account. Robinhood does not charge a commission, so you pay only the price of the shares themselves. You do not need to know anything about stock markets or investing strategy to complete the transaction — the app walks you through each step.
Key Takeaways
- You must have cash in your Robinhood account before you can buy; link a bank account and transfer money first if your account is empty.
- Search for a stock by company name or ticker symbol in the app, then tap the stock name to open its detail page.
- Enter the number of shares you want to buy (or the dollar amount), review the order, and tap the confirmation button to complete the purchase.
- Orders placed during market hours (9:30 a.m. to 4 p.m. Eastern, Monday through Friday) execute at or near the price shown; orders placed outside those hours execute when the market opens.
- Your shares settle two business days after purchase, meaning the transaction is final and you own them outright.
Make sure you have cash in your account first
Robinhood will not let you buy a stock if your account balance is zero. You need to link a bank account and transfer money into Robinhood before you place any order. This is a one-time setup that takes a few minutes.
Open the app, tap the account icon (usually at the bottom right), and select "Transfers." Choose "Add Money" and follow the prompts to connect your bank account. Robinhood will ask for your routing number and account number, which you can find on a check or in your bank's app. Once linked, you can transfer money instantly (though Robinhood may hold it for a few days before you can use it) or schedule a standard transfer that takes three to five business days but costs nothing.
The amount you transfer is entirely up to you. You can start with $100, $1,000, or any amount that fits your situation. There is no minimum to open an account or to make your first purchase.
Search for the stock you want to buy
Tap the search icon at the bottom of the Robinhood app (usually a magnifying glass). Type either the company name or its ticker symbol — a one- to four-letter code that represents the stock. For example, Apple's ticker is AAPL, Tesla's is TSLA, and Microsoft's is MSFT. If you do not know the ticker, typing the company name works just as well.
Robinhood will show you a list of matching results. Tap the one you want. The app will open a detail page showing the stock's current price, a price chart, news about the company, and other information. This is where you decide whether you actually want to buy it.
Enter the number of shares and place your order
On the stock detail page, look for a button labeled "Buy" (usually at the bottom of the screen in green). Tap it. Robinhood will open an order form where you enter how many shares you want to purchase.
You can enter the number of shares directly, or you can enter a dollar amount and let Robinhood calculate how many shares that buys. For example, if a stock costs $150 per share and you enter $300, Robinhood will show you that you can buy 2 shares. The app displays the total cost before you confirm, so you can see exactly how much money will leave your account.
Once you are satisfied with the order, tap the confirmation button (usually labeled "Review Order" or "Place Order"). Robinhood will show you a final summary of what you are about to buy. Check it one more time, then tap the final confirmation button. Your order is now placed.
Understand when your order executes
If you place an order while the stock market is open — between 9:30 a.m. and 4 p.m. Eastern time, Monday through Friday — your order executes almost instantly at or very close to the price shown on the app. You will see your new shares in your account within seconds.
If you place an order outside market hours (before 9:30 a.m., after 4 p.m., on weekends, or on holidays), Robinhood holds your order and executes it when the market opens the next trading day. The price you pay may be different from the price shown when you placed the order, because stock prices change when the market is closed. Robinhood will show you the actual execution price once the order goes through.
You can cancel an order before it executes. If you placed an order outside market hours and change your mind before the market opens, go back to the order in your app and tap "Cancel." Once the market opens and your order executes, you own the shares and cannot cancel — you would have to sell them instead.
Know the difference between owning shares and settlement
Your shares appear in your account and are yours to keep or sell immediately after your order executes. However, the transaction does not fully settle until two business days later. Settlement is a behind-the-scenes process where the money officially moves from your bank to Robinhood's clearing firm, and the shares officially move from the seller to you.
In practice, this does not affect you. You can sell the shares before settlement is complete, and you can buy other stocks using the same money. Robinhood handles the timing automatically. Settlement matters mainly if you are transferring money out of Robinhood — the app may not let you withdraw funds until the stocks you bought have settled.
Watch out for common mistakes
The most common error is trying to buy a stock when your account has no cash. Transfer money first, wait for it to clear (which can take a few days), and then place your order. The second mistake is placing an order outside market hours and expecting it to execute at the price shown — prices change overnight, and your order will execute at whatever price the stock opens at the next morning.
A third mistake is buying a stock on impulse without understanding what you are buying. Robinhood makes it so easy to purchase that it is tempting to buy based on a news headline or a tip from a friend. Take a moment to read the company information on the stock detail page, or search for basic facts about the company before you commit your money.
Finally, do not assume that a low stock price means a good deal. A stock that costs $5 per share is not automatically cheaper or safer than one that costs $500 per share. The price per share is just one number; what matters is the total value of the company and whether you think it will grow.
Frequently Asked Questions
What happens if I do not have enough cash to buy the number of shares I want?
Robinhood will not let you place the order. The app will show an error message saying your account does not have enough buying power. You can either transfer more money into your account and try again, or reduce the number of shares you are trying to buy.
Can I buy fractional shares on Robinhood?
Yes. If a stock costs $500 per share and you have only $250, you can buy 0.5 shares. Robinhood lets you enter any dollar amount, and it will calculate the fractional shares automatically. You own that fraction outright and can sell it whenever you want.
What is the difference between a market order and a limit order?
A market order buys the stock at whatever price it is trading at right now — the price you see on the app. A limit order lets you set a maximum price you are willing to pay, and Robinhood will only buy if the stock drops to that price or lower. Robinhood's basic interface uses market orders by default, but you can switch to limit orders in the order form if you want more control over the price.
Can I buy a stock that is not listed on Robinhood?
No. Robinhood offers stocks listed on major U.S. exchanges like the Nasdaq and New York Stock Exchange, but not every stock. If you search for a company and it does not appear, Robinhood does not offer it. You would need to use a different brokerage to buy that stock.
Do I pay taxes on stocks I buy but do not sell?
No. You pay taxes only when you sell a stock and realize a gain or loss. Simply owning shares does not trigger a tax bill. However, if a stock pays dividends, you may owe taxes on that dividend income even if you do not sell the shares.