The basic steps to buy a stock on Robinhood
To buy a stock on Robinhood, you open the app, search for the company by name or ticker symbol, tap the stock, and then tap the buy button. You enter how many shares you want, review the order, and confirm. The shares settle in your account within one to two business days, though you can sell them when ready if you change your mind.
The process takes about two minutes once you have already opened an account and linked a bank account for funding. Robinhood does not charge a commission — you pay only the price of the stock itself plus any fractional share fees if applicable. The app shows you the current price before you confirm, so you know exactly what you are paying.
One important detail: the price you see is a real-time quote, but the actual price you pay may be slightly different if the market is moving fast. This difference is called slippage. For most stocks during regular trading hours, slippage is small, but it can be larger during the first hour after the market opens or the last hour before it closes.
Key Takeaways
- Search for the stock by company name or ticker symbol, tap buy, enter the number of shares, and confirm the order in the Robinhood app.
- Your shares settle within one to two business days, but you can sell them before settlement if you need to.
- Robinhood charges no commission, but the price you pay may differ slightly from the quoted price if the market is moving quickly.
- You can buy fractional shares (pieces of a stock) on Robinhood, which means you can invest any dollar amount, not just whole-share prices.
- Orders placed outside regular market hours (9:30 a.m. to 4 p.m. Eastern Time) will execute when the market opens the next trading day.
Finding and selecting a stock to buy
Open the Robinhood app and tap the search icon at the bottom. Type the company name (like "Apple") or the ticker symbol (like "AAPL"). Robinhood will show you a list of matches. Tap the one you want, and the stock detail page opens.
On the detail page, you see the current price, a chart showing price movement over different time periods, news about the company, and basic information like the market cap and dividend yield. This is where you decide whether you actually want to buy at this price. Take your time reading — there is no rush, and the price will update as the market moves.
If you are not sure about a stock, you can add it to a watchlist by tapping the star icon. This lets you track the price without buying, so you can watch it for days or weeks before deciding.
Entering your order and choosing share quantity
Once you have decided to buy, tap the buy button (usually green). A screen appears asking how many shares you want. You can enter a whole number like 5, or a dollar amount like $100, and Robinhood will calculate how many fractional shares that buys. For example, if a stock costs $150 per share, $100 buys you 0.67 shares.
Below the quantity field, you see the total cost of your order. This is the price per share multiplied by the number of shares you are buying. Check this number carefully — it should match what you intended to spend. You also see the order type: most of the time, this is set to "market order," which means Robinhood will buy at the best available price right now.
If you want to buy only if the price drops to a certain level, you can change the order type to "limit order." A limit order tells Robinhood to buy only if the stock reaches the price you specify. This takes longer to fill (it might not fill at all if the price never reaches your limit), but it gives you control over the price you pay.
Reviewing and confirming your purchase
Before you confirm, Robinhood shows you a summary: the stock name, the number of shares, the price per share, and the total cost. Read this carefully. If anything looks wrong, tap back and fix it. Once you tap confirm, the order goes to the market.
After you confirm, you see a confirmation screen with an order number. This order is now live. If you placed a market order during regular trading hours, it will fill within seconds. If you placed a limit order or ordered outside trading hours, it will wait until the conditions are met.
Your shares appear in your portfolio when ready, even though they do not officially settle for one to two business days. During this settlement period, you own the shares and can sell them, but you cannot withdraw the cash from the sale until settlement is complete.
Understanding settlement and when you can sell
When you buy a stock, the transaction settles two business days later. Settlement is the process where the cash leaves your bank account and the shares officially become yours in the eyes of the market. Until settlement, the shares are in a pending state, but you can still sell them.
If you sell before settlement is complete, the cash from the sale also enters a pending state and will not be available to withdraw until two business days after the sale. This is a rule of the stock market itself, not a Robinhood rule. Robinhood does let you buy and sell during the settlement period, but the cash movement is delayed.
One exception: if you have a Robinhood Gold membership (a paid subscription), you can use margin to buy stocks before your previous purchases settle. Margin is borrowed money, and it comes with fees and risks. Most new investors should avoid margin until they understand how it works.
Avoiding common mistakes when buying stocks
The most common mistake is buying during the first 30 minutes after the market opens (9:30 a.m. to 10 a.m. Eastern Time). Prices are often volatile during this window, and slippage is larger. If you are not in a rush, wait until mid-morning to place your order.
Another mistake is placing a market order when the market is closed. If you place an order after 4 p.m. Eastern Time on a weekday, or anytime on a weekend or holiday, it will not fill until the market opens the next trading day. The price may be very different by then. If you want to control the price, use a limit order instead.
A third mistake is buying a stock you do not understand just because you heard about it from a friend or social media. Take time to read about the company, look at its financial statements, and think about whether you believe in it long-term. Robinhood makes buying straightforward, but that does not mean every stock is worth buying.
What happens after your order fills
Once your order fills, the stock appears in your portfolio with a quantity and a current value. Robinhood shows you the price you paid per share and the total amount you spent. As the stock price moves, the value of your position updates in real time during market hours.
You can see your gain or loss in dollars and as a percentage. If the stock goes up, this number is green and positive. If it goes down, it is red and negative. This is just a paper gain or loss until you sell — the actual profit or loss is locked in only when you sell the shares.
You can hold the stock as long as you want. There is no time limit, and Robinhood does not charge you a fee just for holding. If the company pays a dividend (a cash payment to shareholders), Robinhood deposits it into your account automatically.
Frequently Asked Questions
Can I buy stocks outside of market hours on Robinhood?
You can place an order anytime, but it will not fill until the market is open. If you place an order after 4 p.m. Eastern Time on a weekday, it will fill when the market opens the next trading day at 9:30 a.m. The price may be different from what you saw when you placed the order. Robinhood also offers extended-hours trading (4 p.m. to 8 p.m. and 7 a.m. to 9:30 a.m.) for some stocks, but prices are less stable and spreads are wider.
What is the minimum amount I need to buy a stock on Robinhood?
There is no minimum. Because Robinhood lets you buy fractional shares, you can invest $1, $5, or any amount you want. You are not forced to buy a whole share, so the price of the stock does not matter — a $500 stock and a $50 stock are equally accessible.
Do I pay taxes when I buy a stock?
No, you pay taxes only when you sell and realize a gain. If you buy a stock for $100 and it grows to $150, you owe no tax until you sell. Once you sell, you owe capital gains tax on the $50 profit. Robinhood sends you a tax form at the end of the year showing all your sales.
Can I cancel an order after I place it?
If your order has not filled yet, you can cancel it. Go to your portfolio, find the pending order, and tap cancel. If the order has already filled, you cannot cancel it, but you can sell the shares when ready if you change your mind. Selling incurs the same two-day settlement period.
What does "buying power" mean on Robinhood?
Buying power is the amount of cash you have available to invest. It includes cash you have deposited that has settled, plus any unsettled cash from recent sales. If your buying power is $500, you can buy up to $500 worth of stocks. Robinhood shows your buying power at the top of the app so you always know how much you can spend.