The basic steps to buy a stock on Robinhood
To buy a stock on Robinhood, you open the app or website, search for the company by name or ticker symbol, tap or click "Buy," enter the number of shares you want, and confirm the order. The trade executes during market hours — typically 9:30 a.m. to 4 p.m. Eastern time on weekdays when U.S. stock markets are open. Your shares appear in your account immediately after the order fills, though the cash leaves your account right away.
You need a funded Robinhood account before you can buy anything. That means you have already completed account setup, passed identity verification, and transferred money into your account. If you have not done that yet, you will need to complete those steps first — they typically take one to three business days for the money to show up and be ready to trade.
Robinhood charges no commission on stock trades, meaning you do not pay a fee per transaction. You do pay the bid-ask spread, which is the small difference between what buyers are willing to pay and what sellers are asking — this is how market makers make money, not Robinhood directly. You also pay any applicable taxes on gains when you sell.
Key Takeaways
- Search for a stock by company name or ticker symbol, tap Buy, enter the number of shares, and confirm — the whole process takes under two minutes.
- Your order only fills during market hours (9:30 a.m. to 4 p.m. Eastern, Monday through Friday), so orders placed outside those times execute the next market open.
- You must have money in your Robinhood account before you can buy, and that money must have fully settled (usually one to three business days after you transfer it).
- Robinhood charges no commission per trade, but you pay the bid-ask spread and any taxes on profits when you sell.
- Fractional shares let you buy partial ownership of expensive stocks — for example, you can buy 0.5 shares of a $200 stock for $100.
Finding and selecting the stock you want to buy
Open the Robinhood app or go to robinhood.com and tap or click the search icon at the bottom or top of the screen. Type the company name (like "Apple") or its ticker symbol (like "AAPL"). Robinhood shows you matching results — the stock will appear with its current price, the day's percentage change, and a chart. Tap or click on the stock to open its detail page.
On the detail page, you see the current bid and ask prices, recent news about the company, and a chart showing price history over different time periods. You can read this information to decide whether you want to buy. Robinhood also shows you how many shares you could buy with your available cash at the current price, which helps you decide how many shares to purchase.
If you are not sure which stock to buy, Robinhood shows lists of popular stocks, stocks by sector (technology, healthcare, finance), and stocks that are trending that day. These are informational only — they do not recommend which stocks are good investments. Your own research, or advice from a financial advisor, should guide your decision about what to buy.
Entering your order and choosing order type
After you decide on a stock, tap or click the "Buy" button on the stock's detail page. A window opens where you enter the number of shares. You can type a whole number (like 10) or a decimal (like 2.5 if you want fractional shares). Below that, you choose your order type: Market or Limit.
A Market order buys the stock at whatever price it is trading at right now. It fills almost instantly during market hours, but the exact price you pay might be slightly different from what you saw on the screen a few seconds ago — prices move constantly. Use a market order when you want the trade to happen immediately and do not mind small price changes.
A Limit order lets you set the maximum price you are willing to pay. If the stock price drops to that level or lower, your order fills. If it never reaches that price, your order stays open until market close that day (or until you cancel it). Limit orders take longer to fill or may not fill at all, but they protect you from paying more than you intended. For a beginner, market orders are simpler — you see the price, you buy at that price, and it is done.
Confirming your purchase and watching your order fill
After you choose your order type and number of shares, review the total cost at the bottom of the screen. This is the number of shares times the current price (for a market order) or your limit price (for a limit order). Tap or click "Review Order" or "Confirm," and Robinhood shows you a final summary. Check that the stock ticker, number of shares, and order type are all correct. Then tap or click "Place Order" or "Buy Now."
If you placed a market order during market hours, it fills within seconds. If you placed a limit order, it may fill immediately if the price is already at or below your limit, or it may sit open waiting for the price to drop. If you placed any order outside market hours (before 9:30 a.m. or after 4 p.m. Eastern, or on weekends), it waits in your queue and executes at the market open the next trading day.
You see a confirmation screen showing that your order was placed. The shares then appear in your "Stocks" or "Holdings" section of the app. Your available cash balance decreases by the amount you spent. You now own those shares and can sell them, hold them, or buy more whenever you want.
Understanding fractional shares and minimum purchases
Robinhood lets you buy fractional shares, meaning you do not have to buy a whole share. If a stock costs $500 per share and you have $250, you can buy 0.5 shares. This is useful for expensive stocks or if you want to spread a small amount of money across multiple companies. Fractional shares trade at the same price per share as whole shares — you pay the bid-ask spread just like anyone else.
The minimum purchase on Robinhood is $1. You can buy $1 worth of any stock, which might be 0.002 shares of an expensive stock or 10 shares of a cheap one. There is no maximum per trade, but you cannot spend more than the cash you have in your account. If you try to buy more than your available balance, Robinhood stops you and shows an error message.
What happens after your order fills
Once your order fills, the shares belong to you. You can sell them at any time during market hours, or hold them indefinitely. Robinhood shows your shares in your Holdings section with the current price, your total gain or loss (in dollars and percentage), and the average price you paid per share. This average price updates if you buy more shares later.
If the company pays a dividend (a cash payment to shareholders), it deposits into your account automatically. Robinhood shows dividend payments in your History or Activity section. You do not have to do anything to receive dividends — they come to you as long as you own the shares on the dividend date.
When you sell your shares later, you may owe taxes on any profit. Robinhood tracks your cost basis (what you paid) and your sale price, and reports this to the IRS. You are responsible for paying taxes on capital gains — Robinhood does not withhold taxes automatically. Keep records of when you bought and sold, because the tax rate depends on how long you held the shares (short-term versus long-term gains have different rates).
Common mistakes to avoid when buying stocks
Do not place an order outside market hours expecting it to fill at the price you see on the screen. Prices change overnight and over weekends. Your order will execute at the next market open, possibly at a very different price. If you want to control the price, use a limit order instead of a market order.
Do not spend money you cannot afford to lose. Stock prices go down as well as up. If you invest your emergency fund or money you need soon, you risk having to sell at a loss. Only buy stocks with money you can leave invested for at least a few years.
Do not buy a stock just because it is trending or because someone on social media recommended it. Do your own research or talk to a financial advisor. Robinhood's lists and news are informational — they are not recommendations. Many beginners lose money by chasing trends instead of building a long-term plan.
Frequently Asked Questions
Can I buy stocks before the market opens or after it closes?
You can place an order anytime, but it will not fill until the market is open (9:30 a.m. to 4 p.m. Eastern, Monday through Friday). Your order sits in the queue and executes at the next market open, possibly at a different price than you expected. If you want to control the price, use a limit order.
What is the difference between a market order and a limit order?
A market order buys immediately at the current price — it fills fast but the exact price may shift slightly. A limit order sets a maximum price you will pay and only fills if the stock drops to that level or lower. Limit orders are safer for price control but may not fill at all if the stock never reaches your price.
Do I have to buy a whole share, or can I buy a partial share?
Robinhood lets you buy fractional shares. You can buy as little as $1 worth of any stock. This is useful if you want to own an expensive stock but do not have enough cash for a full share, or if you want to spread a small amount across many companies.
How long does it take for my order to fill?
Market orders fill within seconds during market hours. Limit orders fill when the price reaches your limit, or they may never fill if the price does not drop that low. Orders placed outside market hours wait until the market opens the next trading day.
What fees does Robinhood charge for buying stocks?
Robinhood charges no commission per trade. You pay the bid-ask spread (the difference between buy and sell prices), which is how market makers profit. You also owe taxes on any gains when you sell, though Robinhood does not withhold these automatically.