The basic steps to buy stock on Robinhood
To buy stock on Robinhood, you need a funded account, the stock ticker symbol, and about five minutes. Open the app or website, search for the company by name or ticker, tap or click "Buy", enter the number of shares you want, choose whether to buy at market price or set your own price, and confirm the order. The stock settles in your account within one to two business days, though you can sell it immediately if you change your mind.
Robinhood charges no commission on stock trades, which is why many people use it. You pay only the price of the shares themselves — there are no per-trade fees layered on top. The trade executes during market hours (9:30 a.m. to 4 p.m. Eastern Time on weekdays) or during extended hours if you have that feature turned on.
Key Takeaways
- You must fund your Robinhood account with money before you can buy stock, either by linking a bank account or transferring funds.
- Market orders buy at the current price immediately; limit orders let you set a maximum price you will pay and wait for the stock to drop to that level.
- Stock trades settle within one to two business days, meaning the shares are fully yours after that time, but you can sell before settlement.
- Robinhood charges no commission, but the bid-ask spread (the difference between buy and sell prices) is a real cost you pay to the market.
Setting up your account and adding money
Before you can buy anything, you need a Robinhood account with money in it. Download the Robinhood app or go to robinhood.com, enter your email, create a password, and answer identity verification questions. Robinhood will ask for your Social Security number, date of birth, and address — this is standard for any brokerage and required by law.
Once your account is open, link a bank account. Go to the Account menu, select "Transfers", and choose "Add Bank Account". Robinhood will ask for your bank login or routing and account numbers. After you link the account, you can transfer money in. The first transfer usually takes three to five business days; later transfers are often faster. You cannot buy stock until the money has arrived and cleared.
Finding and selecting a stock to buy
On the Robinhood home screen, tap or click the search icon and type the company name or stock ticker symbol. If you do not know the ticker, search by company name — Robinhood will show you the full name and ticker. For example, searching "Apple" shows you AAPL. Tap the stock name to open its detail page, where you can see the current price, a price chart, and news about the company.
Take time to read what you are buying. The detail page shows the current bid price (what buyers will pay right now) and the ask price (what sellers want). The difference between these is the spread — you will pay the ask price when you buy. You can also see the stock's 52-week high and low, which gives you a sense of its recent range, though past price is not a guide to future price.
Placing a market order versus a limit order
A market order buys at the best available price right now. Tap "Buy", enter the number of shares, and select "Market Order". Robinhood shows you the estimated total cost. Confirm, and the order executes within seconds during market hours. You own the shares immediately, though they settle in your account within one to two business days.
A limit order lets you set the highest price you will pay. If Apple is trading at $150 but you only want to buy if it drops to $145, you can set a limit order. Tap "Buy", enter the number of shares, select "Limit Order", and enter your price. The order waits in the market until the stock hits your price or until you cancel it. Limit orders can take hours, days, or never fill if the stock never reaches your price.
Most new buyers use market orders because they execute immediately and you know you will get the shares. Limit orders are useful if you want to wait for a better price and do not mind missing out if the stock never drops that far.
Understanding what happens after you buy
After your order fills, the shares appear in your Robinhood account under "Stocks". You own them immediately, but they are in "unsettled" status for one to two business days. During this time, you can still sell the shares if you want — selling does not require them to be settled. Once settlement is complete, the shares move to "settled" status and you can do anything with them, including transferring them to another brokerage if you leave Robinhood.
Robinhood shows your total gain or loss in dollars and as a percentage. If you bought 10 shares of a stock at $100 each and it is now worth $105, Robinhood shows a $50 gain (10 shares × $5). This is an unrealized gain — you have not sold yet, so it is not locked in. If the price drops to $95, your gain becomes a $50 loss.
Costs and fees to know about
Robinhood charges no commission on stock trades, which means no per-trade fee. However, you do pay the bid-ask spread, which is the difference between what buyers will pay and what sellers want. If you buy Apple at the ask price of $150.05 and the bid price is $150.00, you have already lost $0.05 per share to the spread. This is not a Robinhood fee — it is a market cost that exists at every brokerage.
Robinhood also offers margin trading, which lets you borrow money to buy more stock than your cash allows. Margin has interest costs and risks; most new buyers should not use it. Stick to buying with cash you have already deposited.
What to do if your order does not fill
If you placed a limit order and the stock never reached your price, the order simply stays open until you cancel it or the market closes at the end of the trading day. If you want to cancel, go to your order history, find the order, and tap "Cancel". The money stays in your account and you can use it for another trade.
If you placed a market order and it did not fill within a few seconds, something unusual happened — the market may have halted, or Robinhood may have had a technical issue. Check your order history to see the status. If the order is still pending after several minutes, contact Robinhood support through the app.
Frequently Asked Questions
Can I buy stock before the market opens?
Robinhood offers extended-hours trading, which lets you trade before 9:30 a.m. and after 4 p.m. Eastern Time. You must turn this on in your account settings. Extended-hours trading has wider spreads and lower volume, so prices move more and orders may not fill. Most buyers stick to regular market hours.
What is the minimum amount of money I need to start?
Robinhood has no account minimum. You can open an account with $1 and buy fractional shares — meaning you can own a piece of an expensive stock without buying a whole share. If Apple costs $150 per share, you can buy $50 worth and own one-third of a share.
Can I set up automatic purchases?
Robinhood does not offer automatic recurring purchases or dividend reinvestment. You must manually buy each time. Some other brokerages offer these features if you want them.
What happens if I sell a stock I just bought?
You can sell a stock immediately after buying it, even before it settles. If you buy at $100 and sell at $105 the next day, you keep the $5 profit. However, if you do this frequently, Robinhood may flag you as a pattern day trader, which has account restrictions. Check Robinhood's rules on day trading if you plan to buy and sell quickly.
Do I owe taxes on stock I buy?
You owe taxes only when you sell and realize a gain or loss. Buying stock does not trigger a tax event. When you do sell, Robinhood reports the sale to the IRS and sends you a tax form. Keep records of what you paid and when you sold so you can report it correctly on your tax return.