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 it. The shares settle in your account within one to two business days, though you can sell them when ready if you want.
The whole process takes about two minutes once you have money in your account. Robinhood does not charge a commission — you pay only the price of the stock itself. The app shows you the current price before you confirm, so you know exactly what you are spending.
You do need a funded account to start. If you have not yet linked a bank account or transferred money in, that step comes first and can take one to three business days depending on your bank.
Key Takeaways
- Search for a stock by company name or ticker symbol in the Robinhood app, then tap the buy button and enter the number of shares you want.
- You can buy fractional shares on Robinhood, meaning you can spend any dollar amount rather than having to buy whole shares.
- Your order executes at market price during market hours (9:30 a.m. to 4 p.m. Eastern on weekdays), or at the next market open if you order after hours.
- Robinhood charges no commission, but the bid-ask spread (the difference between what buyers and sellers are willing to pay) is a real cost you should understand.
- Shares you buy settle within one to two business days, but you can sell them before settlement if you choose.
Finding and selecting a stock to buy
Open the Robinhood app and tap the magnifying glass icon at the bottom of the screen. Type the company name (like "Apple") or its ticker symbol (like "AAPL"). Robinhood will show you matching results. Tap the one you want.
The stock detail page shows you the current price, a chart of how the price has moved, and basic information about the company. You can scroll down to see news, earnings dates, and other details. None of this information commits you to anything — you are just looking.
If you are not sure which stock to buy, take time to research. Robinhood's app includes news and charts, but you can also read articles on financial news sites or watch videos about how stock picking works. There is no rush.
Entering your order and choosing how many shares
Once you have found the stock you want, tap the buy button (usually green). Robinhood will show you the current price and ask how many shares you want to buy. You can enter a whole number (like 10 shares) or a dollar amount (like $500). If you choose a dollar amount, Robinhood buys as many fractional shares as that amount covers.
For example, if a stock costs $150 per share and you enter $500, you get 3.33 shares. You own a piece of that third share. Fractional shares let you invest any amount of money, not just multiples of the stock price.
After you enter the number of shares or dollar amount, tap review order. Robinhood shows you the total cost and asks you to confirm. Check that the number is what you intended, then tap confirm or buy.
Understanding market hours and order timing
The stock market is open from 9:30 a.m. to 4 p.m. Eastern time on weekdays (Monday through Friday). If you place an order during those hours, it executes at the current market price right away. If you place an order after 4 p.m. or on a weekend, it waits until the market opens the next trading day.
Robinhood also offers extended-hours trading from 4 p.m. to 8 p.m. Eastern and from 7 a.m. to 9:30 a.m. Eastern on weekdays. Prices during extended hours can be different from regular market prices, and there is less trading activity, so spreads are wider. Most new investors stick to regular market hours.
You can also set a limit order, which tells Robinhood to buy only if the price drops to a certain level. For example, you could say "buy 10 shares of Apple only if it hits $150." If the price never reaches $150, the order never executes. Limit orders are useful if you want to wait for a better price, but they also mean your order might not fill at all.
What happens after you confirm your order
Once you confirm, your order is placed. Robinhood shows you a confirmation screen with the order details. The shares appear in your account almost when ready, but they are marked as "unsettled" for one to two business days. Settlement is the behind-the-scenes process where the money actually moves from your bank to the brokerage and the shares are officially registered to you.
You can sell unsettled shares if you want — you do not have to wait for settlement. However, if you sell shares before they settle, you trigger what is called a "good-faith violation" if you do this repeatedly. Robinhood allows a few free violations per year, but after that you may face restrictions on your account. Most investors straightforward hold their shares until settlement completes.
Your purchase is final once you confirm. Robinhood does not charge a restocking fee or cancellation fee, but you cannot undo the order after confirmation. If you change your mind, your only option is to sell the shares.
Costs and fees you should know about
Robinhood charges zero commission on stock trades. You pay only the price of the stock itself. However, there is a real cost called the bid-ask spread. This is the difference between what buyers are willing to pay and what sellers are asking. When you buy, you pay the asking price (slightly higher). When you sell, you receive the bid price (slightly lower). The spread is usually small for popular stocks but can be wider for less-traded companies.
For example, if Apple's bid is $150.00 and its ask is $150.05, you pay $150.05 to buy and receive $150.00 to sell. That $0.05 difference is the spread, and it is a real cost even though Robinhood does not label it as a fee.
Robinhood also offers margin accounts, which let you borrow money to buy stocks. Margin comes with interest charges and risk — if the stock price drops, you owe the borrowed money anyway. Most new investors should stick to a standard cash account and buy only what they can afford.
Common mistakes to avoid when buying stocks
The biggest mistake is buying without a plan. Decide in advance why you are buying a particular stock, how long you plan to hold it, and how much you can afford to lose. Buying on impulse because a stock is trending or because a friend mentioned it usually leads to poor results.
Another common error is confusing a stock's price with its value. A stock that costs $20 is not necessarily cheaper or safer than one that costs $200. The price per share depends on how many shares the company has issued. What matters is whether the company is worth what you are paying, and that requires research.
Do not use money you need for bills, rent, or emergencies to buy stocks. Stock prices go up and down. If you need the money in the next few years, the stock market is not the right place for it. Keep an emergency fund in a savings account first.
Frequently Asked Questions
Can I buy stocks on Robinhood with less than $1?
Yes. Robinhood lets you buy fractional shares, so you can invest any dollar amount. You could spend $5 or $50 on a single stock. There is no minimum investment amount.
What is the difference between a market order and a limit order?
A market order buys at whatever the current price is right now. A limit order only buys if the price drops to a level you set. Market orders fill when ready during market hours. Limit orders might never fill if the price never reaches your target.
Why does my stock price look different on Robinhood than on other websites?
If the market is closed, the price you see is the last price from when it closed. Different websites may show slightly different prices during extended hours because trading is lighter and spreads are wider. Once the market opens, all prices converge to the same market price.
Can I buy stocks on Robinhood on weekends?
You can place an order on weekends, but it will not execute until the market opens on Monday morning. You cannot trade stocks on weekends during regular market hours, though extended-hours trading is available on weekday mornings and evenings.
What happens if I do not have enough money in my account to buy a stock?
Robinhood will not let you place the order. The buy button will be grayed out or the app will show an error saying you do not have sufficient funds. You need to transfer money into your account first.