Getting started: account setup and first login

To use Robinhood, you download the app from Apple's App Store or Google Play, then create an account with your email address and a password. The app will ask for your legal name, date of birth, Social Security number, and address — this is standard identity verification that brokerages are required to do by law.

Once you've entered that information, Robinhood links to your bank account so you can transfer money in. This takes one to three business days the first time. You don't need to fund your account immediately — you can explore the app's features while you wait, or start with a small deposit to see how it works.

After your bank account is linked and verified, you log in with your email and password. The app will ask if you want to set up two-factor authentication (a code sent to your phone when you log in from a new device). This is optional but recommended, since it protects your account if someone learns your password.

Key Takeaways

  • You need a linked bank account to fund Robinhood, and the first transfer takes one to three business days.
  • The home screen shows your account balance, recent trades, and a search bar where you type a stock ticker to find a company.
  • To buy a stock, you search for it, tap the stock name, enter how many shares you want, and confirm the order.
  • Robinhood charges no commission on stock trades, but the price you pay may differ slightly from the price shown on screen because of market movement during the order.
  • You can sell shares the same way you bought them, and the money returns to your Robinhood account within one business day.

Finding and researching a stock before you buy

The home screen of the Robinhood app has a search icon at the top. Tap it and type the company name or its stock ticker symbol (a one- to four-letter code like AAPL for Apple or TSLA for Tesla). The app shows you matching results with the company name, ticker, and current price.

Tap the stock name to open its detail page. Here you see the current price, a price chart you can zoom in or out on, and basic information like the company's sector and what it does. Below that are tabs for "News" (recent articles about the company) and "Fundamentals" (earnings, revenue, and other financial data). None of this information is unique to Robinhood — you can find the same data on Yahoo Finance or your bank's website — but it's built into the app so you don't have to switch between screens.

Read the news and look at the chart, but understand that Robinhood is showing you information, not advice. The app does not tell you whether to buy or sell a stock. That decision is yours alone.

Placing a buy order and understanding what happens next

Once you've decided to buy, tap the "Buy" button on the stock's detail page. The app shows you a screen where you enter how many shares you want. You can type a number (like 10) or a dollar amount (like $500), and Robinhood calculates how many shares that buys at the current price. Tap "Review Order" to see a summary.

The review screen shows the stock name, number of shares, and the estimated total cost. This is an estimate because the actual price may shift between the moment you see it and the moment your order reaches the market — this shift is called slippage, and it usually amounts to a few cents per share. Tap "Submit Order" to send the trade.

Your order goes to the market immediately. If you're buying during market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays), the trade usually fills within seconds. If you're buying after hours or on a weekend, the order waits until the market opens the next trading day. Once the order fills, you own the shares and they appear in your "Stocks" tab with a green checkmark.

Selling shares and moving money back to your bank

To sell shares, go to your "Stocks" tab, find the stock you own, and tap it. The detail page now shows a "Sell" button instead of "Buy". Tap it, enter how many shares you want to sell (or the dollar amount), and review the order the same way you did for a buy.

When you sell, the money lands in your Robinhood account balance within one business day. From there, you can use it to buy other stocks, or you can transfer it back to your bank account. To transfer money out, tap the account icon at the bottom right, then "Transfers", then "Transfer to Your Bank". Select the amount and confirm. This transfer also takes one to three business days.

If you sell a stock you've owned for less than a year and make a profit, that profit is taxed as a short-term capital gain, which is taxed at your regular income tax rate. If you've owned it for a year or longer, it's a long-term capital gain, which has a lower tax rate. Robinhood does not handle taxes for you — you report these gains when you file your tax return, and Robinhood sends you a tax form (1099-B) at the end of the year showing all your trades.

Understanding market hours and after-hours trading

The stock market is open from 9:30 a.m. to 4 p.m. Eastern time on weekdays (Monday through Friday). During these hours, your orders fill quickly at prices that match what you see on screen. Outside these hours, the market is closed, but Robinhood offers after-hours trading from 4 p.m. to 8 p.m. Eastern time.

After-hours trading is riskier than regular trading because fewer people are buying and selling, so prices can swing more dramatically and your order may not fill at all. If you place an after-hours order and the market closes before it fills, the order cancels and you can try again the next day. For most new investors, it's simpler to place orders during regular market hours.

Watching your holdings and understanding account balance

Your "Stocks" tab shows every stock you own, how many shares, the current price per share, and your total gain or loss on that stock. If a stock is up, the number appears in green; if it's down, it appears in red. This is just visual — the color doesn't mean anything about whether you should buy or sell.

At the top of the app, your "Account" balance shows your total cash (money you haven't invested yet) plus the current value of all your stocks. This number changes throughout the day as stock prices move. If you deposit $1,000 and buy $800 worth of stock, your account balance is $1,800 ($200 cash plus $1,600 in stocks). If that stock rises to $1,700, your account balance is now $1,900.

Robinhood also shows your "Buying Power", which is the amount you can spend on new trades. For most accounts, this equals your cash balance plus any unsettled funds (money from recent sales that hasn't landed yet). If you have $200 cash and you sold a stock for $300 that hasn't settled, your buying power is $500.

Avoiding common mistakes and understanding fees

Robinhood charges no commission on stock trades, which means you don't pay a flat fee per trade like you might at an older brokerage. However, you still pay indirectly through the bid-ask spread — the tiny difference between what buyers will pay and what sellers will accept. Robinhood also makes money by lending out shares you own to short-sellers, though you don't see this charge.

A common mistake is buying and selling the same stock repeatedly in a short time frame. If you buy and sell the same stock more than three times in five business days, your account is flagged as a "pattern day trader" and Robinhood requires you to keep at least $25,000 in your account. This rule comes from the Securities and Exchange Commission, not Robinhood, but Robinhood enforces it.

Another mistake is treating Robinhood like a savings account. The money in your Robinhood account is not insured by the Federal Deposit Insurance Corporation (FDIC) the way a bank deposit is. If Robinhood fails, your stocks are protected (they're held in your name), but your cash balance may not be. For money you need within a year, a savings account is safer.

Frequently Asked Questions

Can I buy stocks with money that's still transferring from my bank?

No. You can only buy stocks with money that has already landed in your Robinhood account. The first transfer from your bank takes one to three business days, so you'll need to wait before you can trade. After that, transfers are usually faster.

What happens if I place an order and then close the app?

Your order still goes through. Closing the app doesn't cancel a trade. You can reopen the app anytime to see whether your order filled. If you want to cancel an order before it fills, open the app, go to your "Stocks" tab, find the pending order, and tap "Cancel".

Can I set a price alert so I know when a stock hits a certain price?

Yes. On any stock's detail page, tap the bell icon at the top right and enter the price you want to be notified about. Robinhood sends you a notification when the stock reaches that price, but the notification is not a recommendation to buy or sell.

What's the difference between a market order and a limit order?

A market order buys or sells immediately at whatever the current price is. A limit order lets you set a maximum price you'll pay (for a buy) or a minimum price you'll accept (for a sell). If the stock never reaches that price, your order doesn't fill. Robinhood lets you choose between these on the order review screen.

Do I have to report my Robinhood trades to the IRS?

Yes. Any profit you make is taxable income. Robinhood sends you a 1099-B form at the end of the year showing all your trades, and you report this on your tax return. If you lost money, you can deduct those losses against other gains.