Getting started with Robinhood: the basic steps

To invest through Robinhood, you read the app or visit the website, create an account, link a bank account, and then place your first trade. The process takes about 15 minutes from read to your first purchase. Robinhood lets you buy stocks, exchange-traded funds (ETFs), options, and cryptocurrencies with no account minimum and no commission on stock and ETF trades.

The account setup requires your name, date of birth, Social Security number, and address. Robinhood uses this information to verify your identity and comply with federal regulations. Once your identity is confirmed, you link a checking or savings account from a U.S. bank. Money typically moves from your bank to Robinhood within one to three business days, though some transfers arrive the same day.

After your bank account is linked and you have cash in your Robinhood account, you can search for any stock or ETF by ticker symbol, tap or click to buy, enter the number of shares you want, and confirm the order. Your trade executes during market hours (9:30 a.m. to 4 p.m. Eastern Time on weekdays when the market is open).

Key Takeaways

  • You need a Social Security number, valid ID, and a linked U.S. bank account to open a Robinhood account.
  • Robinhood charges no commission on stock and ETF trades, but does charge fees for certain options strategies and margin borrowing.
  • Cash deposited into your account takes one to three business days to settle, though some deposits arrive faster.
  • Stocks trade during market hours (9:30 a.m. to 4 p.m. Eastern Time on weekdays), and limit orders let you set the price you are willing to pay.
  • Robinhood Gold is a paid subscription that offers margin borrowing and other features, but is not required to start investing.

What you need before you can fund your account

Robinhood requires you to be at least 18 years old and a U.S. citizen or permanent resident with a valid Social Security number. You also need a government-issued ID (driver's license, passport, or state ID) to verify your identity during signup.

Your bank account must be held at a U.S. financial institution and linked in your own name. You cannot fund a Robinhood account from a joint bank account, a business account, or an account held in someone else's name. Robinhood accepts most major U.S. banks, credit unions, and online banks, though some smaller institutions may not be supported.

There is no minimum deposit required to open an account. You can open a Robinhood account with zero dollars and fund it later, though you cannot place trades until cash has settled in your account.

How deposits work and when your money is ready to trade

When you link your bank account and initiate a deposit, Robinhood sends the money request to your bank. Most deposits take one to three business days to complete. Some banks process transfers faster—same-day deposits are possible but not may provide. Weekends and bank holidays extend the timeline.

Once the money arrives in your Robinhood account, it is available to trade when ready. You do not have to wait for a separate settlement period. However, if you sell a stock and want to withdraw that money back to your bank, the cash must settle for one business day before you can move it out of Robinhood.

Robinhood also offers when ready Deposits, a feature that makes some of your deposited cash available to trade before the full transfer completes. The amount available when ready depends on your account history and Robinhood Gold membership status. Not all deposits are may be able to access for when ready availability.

Understanding trade types and how to place an order

A market order buys or sells a stock at whatever price it is trading at the moment your order reaches the market. Market orders execute almost when ready during trading hours, but the exact price you pay may be slightly different from the price you saw on your screen. This difference is called slippage.

A limit order lets you set the maximum price you are willing to pay when buying or the minimum price you are willing to accept when selling. If the stock never reaches your limit price, your order does not execute. Limit orders give you more control over price but may not fill at all.

To place an order in Robinhood, search for the stock or ETF by ticker symbol, tap the buy or sell button, enter the number of shares, choose your order type (market or limit), and confirm. You can also set the order to close at the end of the trading day (day order) or remain open until you cancel it (good-till-cancelled order). Most orders default to day orders.

Fees and costs you should know about

Robinhood charges no commission on stock and ETF trades. This means buying 1 share or 100 shares costs the same in fees: nothing. However, Robinhood does charge fees in other situations.

Options trades carry a per-contract fee of $0.65 (this amount varies by state). Cryptocurrency trades have a spread built into the price you see, meaning you pay slightly more to buy and receive slightly less when you sell compared to the market price. Margin borrowing—using money Robinhood lends you to buy stocks—costs interest, which varies based on the amount borrowed and current rates.

Robinhood Gold, a paid subscription, costs $5 per month and offers features like margin borrowing, extended-hours trading, and research tools. It is optional and not required to trade stocks and ETFs during regular market hours.

How to buy your first stock or ETF

Open the Robinhood app or website and tap the search icon. Type the ticker symbol of the stock or ETF you want to buy—for example, "AAPL" for Apple or "VOO" for the Vanguard S&P 500 ETF. The stock or fund will appear in the search results.

Tap the stock name to open its detail page. You will see the current price, a price chart, and company information. Tap the buy button (usually green). A screen will appear asking how many shares you want to buy. Enter the number and tap next. Choose your order type: market order (buy at current price) or limit order (set your own price). Confirm the order.

If you placed a market order during market hours, it executes within seconds. If you placed a limit order, it waits in the system until the stock reaches your price or the order expires. You can see all your open orders and filled trades in the Robinhood app under the "Orders" or "History" section.

What happens after you buy: holding and selling

Once you own shares, they appear in your portfolio with the number of shares, the price you paid per share, and the current value. Robinhood shows your total gain or loss in dollars and as a percentage. This number updates throughout the trading day as the stock price moves.

You can hold shares for as long as you want. There is no time limit or fee for holding. If you want to sell, tap the stock in your portfolio, tap the sell button, enter the number of shares, choose market or limit order, and confirm. The cash from the sale appears in your account when ready, but you cannot withdraw it to your bank for one business day.

Robinhood also offers fractional shares, meaning you can buy a portion of a stock instead of a whole share. This lets you invest smaller amounts in expensive stocks. For example, you could buy 0.5 shares of a $200 stock for $100.

Frequently Asked Questions

Can I trade stocks before the market opens or after it closes?

Robinhood Gold members can trade during extended hours: 4 a.m. to 9:30 a.m. before the market opens and 4 p.m. to 8 p.m. after it closes. Regular Robinhood users can only trade during standard market hours (9:30 a.m. to 4 p.m. Eastern Time on weekdays). Extended-hours trading has wider bid-ask spreads, meaning prices are less stable.

What is the difference between a stock and an ETF?

A stock is a share of ownership in a single company. An ETF is a fund that holds many stocks, bonds, or other assets bundled together. ETFs offer when ready diversification because one purchase gives you exposure to dozens or hundreds of holdings. Both trade the same way on Robinhood with no commission.

Can I lose more money than I deposit?

With regular stock and ETF purchases, you can only lose the money you invest. If you buy $1,000 worth of stock and it drops to zero, you lose $1,000. However, if you use margin (borrowed money), you can lose more than your deposit. Margin is only available to Robinhood Gold members and requires careful management.

What happens to my stocks if Robinhood goes out of business?

Your stocks are held in your name at a clearing firm, not owned by Robinhood. If Robinhood closes, your shares transfer to another brokerage. Your cash is also protected up to $250,000 per account type through SIPC (Securities Investor Protection Corporation) coverage.

How do I know if a stock is a good investment?

Robinhood provides company information, price charts, and news on each stock's detail page. You can also research stocks on financial websites like Yahoo Finance or Morningstar. Robinhood Gold includes access to research reports. However, past performance does not predict future results, and stock prices can move unpredictably.