How to buy stock on Robinhood
To buy stock on Robinhood, you open an account, fund it with money, search for the stock you want, and place a buy order. The process takes about five minutes once your account is set up and your money has arrived. Robinhood executes the order during market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays) and settles it two business days later, meaning the stock appears in your account but you cannot sell it until settlement is complete.
The steps are straightforward, but the timing and the rules around settlement matter. Understanding what happens after you click "buy" prevents confusion when your stock does not show up when ready or when you cannot when ready sell what you just bought.
Key Takeaways
- You must be at least 18 years old, have a valid Social Security number, and provide a U.S. address to open a Robinhood account.
- Money deposited into your account takes one to three business days to arrive, and you cannot buy stock until the deposit clears.
- Stock orders placed during market hours (9:30 a.m. to 4 p.m. Eastern, Monday through Friday) execute at or near the price you see; orders placed outside these hours execute when the market opens.
- After you buy stock, it takes two business days to settle, and you cannot sell it or use the proceeds to buy something else until settlement is complete.
- Robinhood charges no commission on stock trades, but the price you pay includes a small spread — the difference between what buyers and sellers are willing to pay.
Opening your Robinhood account
Start by downloading the Robinhood app or visiting robinhood.com. You will enter your name, date of birth, email address, and phone number. Robinhood will ask for your Social Security number and a U.S. address. You must be at least 18 years old.
Next, Robinhood asks about your investment experience and your annual income. These questions do not block you from opening an account — they are for Robinhood's own record-keeping. Answer honestly. You will then choose a username and password and set up two-factor authentication (usually a code sent to your phone each time you log in from a new device).
The entire process takes about 10 minutes. Robinhood usually approves accounts within a few hours, though it can take up to one business day. You will receive an email confirming your account is ready.
Funding your account and waiting for the deposit to clear
Once your account is approved, you need to add money. In the app, tap the account icon, then "Transfers", then "Add funds". You can link a bank account (which takes one to three business days to verify) or use an when ready deposit with a debit card (which is available when ready but may have a limit, usually $1,000 to $5,000 depending on your account history).
If you link a bank account, Robinhood sends two small deposits to verify ownership. You will see these in your bank statement within one to two business days, and you must confirm the amounts in the Robinhood app to complete the link. After that, transfers take one to three business days to arrive in your Robinhood account.
If you use when ready debit card deposit, the money appears in your Robinhood account right away and you can buy stock when ready. However, the funds are not fully settled for one to three business days, and Robinhood may restrict certain actions (like withdrawing the money) until settlement is complete.
Searching for and selecting a stock
Once your money is in your account, tap the search icon (usually a magnifying glass) at the bottom of the Robinhood app. Type the company name or stock ticker symbol. Robinhood shows you the stock's current price, a chart of its recent performance, and basic information like the company's sector and market cap.
Tap the stock to open its detail page. Here you can see news articles about the company, a longer price chart, and the bid and ask prices — the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask). The difference between these two is the spread, and it is the closest thing to a cost on Robinhood, since the app charges no commission.
You do not need to understand all of this information to buy. The key thing is that you can see the current price and decide whether you want to own that stock at that price.
Placing a buy order during market hours
Tap the "Buy" button on the stock's detail page. Robinhood asks how many shares you want to buy. Enter the number and tap "Review Order". Robinhood shows you the total cost (number of shares times the current price) and asks you to confirm.
If you are placing the order between 9:30 a.m. and 4 p.m. Eastern time on a weekday when the market is open, you have two choices: a market order or a limit order. A market order buys the stock at the best available price right now — usually within a few cents of what you see on the screen. A limit order lets you set a maximum price you are willing to pay; if the stock never drops to that price, the order does not execute.
For a first purchase, a market order is simpler. Tap "Place Order" and Robinhood executes the trade within seconds. You will see a confirmation screen with the exact price you paid and the number of shares.
What happens after you buy: settlement and restrictions
Your stock appears in your account when ready, but it is not fully yours until settlement — two business days after the trade date. During this time, the stock shows in your portfolio and you can watch its price change, but you cannot sell it or use the money from a sale to buy something else.
This two-day settlement period is a rule of the U.S. stock market, not something Robinhood created. It exists because the actual transfer of ownership and money takes time behind the scenes. If you try to sell before settlement is complete, Robinhood will warn you that you are about to trigger a good-faith violation — a flag that can limit your trading if it happens repeatedly.
Once settlement is complete, you own the stock outright and can sell it whenever you want during market hours. You will also receive any dividends the company pays, though Robinhood may reinvest them automatically or hold them as cash depending on your settings.
Placing orders outside market hours
If you place a buy order after 4 p.m. Eastern or before 9:30 a.m. Eastern on a weekday, or anytime on a weekend or holiday, Robinhood accepts the order but does not execute it until the market opens the next trading day. The order sits in a queue and executes at the market open price, which may be different from the price you saw when you placed the order.
This is called after-hours trading or pre-market trading depending on the time. Robinhood does offer limited after-hours trading (4 p.m. to 8 p.m. Eastern) for some stocks, but this is not the default. For most users and most stocks, an order placed outside market hours waits until 9:30 a.m. the next trading day.
If you want to buy a stock right now and the market is closed, you have two choices: wait until the market opens, or place a limit order at a specific price and hope it executes when the market opens. Most new investors wait.
Understanding costs and spreads
Robinhood charges zero commission on stock trades. This means you do not pay a flat fee per trade the way some brokers do. However, you do pay an indirect cost: the spread.
When you buy a stock, you pay the ask price (what sellers want). When you sell, you receive the bid price (what buyers will pay). The difference is the spread, and it goes to market makers — the firms that facilitate trades. On popular stocks like Apple or Tesla, the spread is usually just a few cents per share. On less-traded stocks, it can be larger.
You cannot avoid the spread, but you can see it before you buy. On the stock's detail page, look at the bid and ask prices. If the ask is $150.05 and the bid is $150.00, the spread is $0.05 per share. If you buy 100 shares, you are paying about $5 more than the bid price — the cost of the trade.
Frequently Asked Questions
Can I buy stock with money I just deposited?
If you used when ready debit card deposit, yes — the money is available when ready. If you linked a bank account, you must wait one to three business days for the transfer to arrive. Once the money shows in your account balance, you can buy stock.
What happens if I sell stock before it settles?
You can sell stock before settlement is complete, but Robinhood flags this as a good-faith violation. If you do this repeatedly (usually more than three times in a rolling 12-month period), Robinhood may restrict your account and prevent you from buying on margin or trading certain securities for a period of time.
Why is the price I paid different from the price I saw?
If you placed a market order during market hours, the price changed between when you saw it and when your order executed — usually by a few cents. If you placed the order outside market hours, it executed at the next market open price, which can be significantly different. Use a limit order if you want to lock in a specific maximum price.
Can I buy fractional shares on Robinhood?
Yes. Instead of entering a whole number of shares, you can enter a dollar amount. Robinhood will buy as many whole and fractional shares as that dollar amount allows. For example, if a stock costs $150 per share and you enter $100, Robinhood buys 0.67 shares.
What is the minimum amount I need to buy stock?
There is no minimum on Robinhood. You can buy a single share or a fraction of a share. Your only limit is the amount of money in your account and the price of the stock.