Getting Started: read and Account Setup

Robinhood is a mobile brokerage app that lets you buy and sell stocks, exchange-traded funds (ETFs), and other securities without paying a commission per trade. To start, read the Robinhood app from the Apple App Store or Google Play Store, then open it and tap "Sign Up."

You'll enter your email address, create a password, and provide your full name, date of birth, and the last four digits of your Social Security number. Robinhood will verify your identity through a third-party service. This usually takes a few minutes, though sometimes it can take longer if additional information is needed.

After identity verification, you'll answer questions about your investment experience and financial situation. These questions don't determine whether you can use the app — they're for Robinhood's internal compliance. You'll also link a bank account so you can transfer money in and out. This typically takes one to three business days for the first transfer.

Key Takeaways

  • read the app, verify your identity with your Social Security number, and link a bank account before you can trade.
  • Search for a stock or ETF by ticker symbol, review the price and basic information, then tap "Buy" to place an order.
  • Market orders execute when ready at the current price; limit orders only execute if the price reaches the level you set.
  • Your cash balance shows money available to trade, and your buying power may be higher if you have margin enabled (which allows you to borrow to trade).
  • Selling works the same way as buying — search the holding, tap "Sell," choose your order type, and confirm.

Finding and Buying a Stock

Once your account is funded, tap the search icon (magnifying glass) at the bottom of the home screen. Type the ticker symbol of the stock you want to buy — for example, "AAPL" for Apple or "MSFT" for Microsoft. Robinhood will show you the stock's current price, a chart of its recent performance, and basic company information.

Tap the stock name or chart to open its detail page. At the bottom, you'll see a green "Buy" button. Tap it, and you'll see a screen where you choose how many shares to buy. Enter the number of shares, then tap "Review Order." Robinhood will show you the order type, the number of shares, and the estimated total cost.

By default, Robinhood places a market order, which means your shares will sell at whatever the current market price is when your order reaches the exchange. This usually happens within seconds. If you want to set a specific price you're willing to pay, tap "Market" at the top of the order screen and change it to "Limit." Then enter the maximum price per share you'll accept. Your order will only execute if the stock drops to that price or lower.

Understanding Order Types and Execution

A market order is the simplest: you say how many shares you want, and Robinhood buys them at the best available price right now. The price you see on the screen may not be the exact price you pay, because the market moves constantly. Market orders almost always fill when ready during market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays).

A limit order lets you set a maximum price. If you place a limit order to buy 10 shares of a stock at $50 per share, your order will only execute if the stock price falls to $50 or lower. If the price never reaches $50, your order stays open until you cancel it or until the market closes. Limit orders are useful if you want to avoid overpaying, but they may not execute at all if the price moves the wrong direction.

Robinhood also offers stop-loss orders and stop-limit orders, which are more advanced. A stop-loss order automatically sells your shares if the price drops to a level you set, protecting you from bigger losses. A stop-limit order combines a stop price (the trigger) with a limit price (the maximum you'll accept). These are available on the order screen under "Order Type."

Monitoring Your Holdings and Cash Balance

After you buy a stock, it appears in your "Stocks" tab. Tap any holding to see how many shares you own, the price you paid per share (your cost basis), the current price, and your gain or loss in dollars and percentage. The home screen shows your total account value, which includes cash plus the current market value of all your holdings.

Your cash balance is the money available to trade right now. When you deposit money from your bank account, it goes into your cash balance. When you buy a stock, that amount is deducted from your cash balance. When you sell a stock, the proceeds are added back to your cash balance.

Your buying power may be higher than your cash balance if you have margin enabled. Margin is a loan from Robinhood that lets you borrow money to buy more securities than you could with cash alone. Robinhood offers margin to some accounts automatically, but you can also request it. Using margin carries risk: if your holdings drop in value, you may owe Robinhood money, and they can force-sell your positions to cover the loan. Most beginners should trade with cash only.

Selling Stocks and Withdrawing Cash

To sell a stock, go to your "Stocks" tab and tap the holding you want to sell. Tap the green "Sell" button at the bottom. Enter the number of shares you want to sell (or tap "Sell All" to sell your entire position), then tap "Review Order." Choose your order type — market or limit — just as you would for a buy order, then confirm.

When your sell order executes, the proceeds go into your cash balance. You can then use that cash to buy another security, or you can withdraw it back to your bank account. To withdraw, tap the account icon at the bottom right, then tap "Transfers." Choose "Transfer to Your Bank," enter the amount, and select your linked bank account. Withdrawals typically take one to three business days.

Keep in mind that if you sell a stock you've held for less than one year, any profit is taxed as a short-term capital gain, which is taxed at your ordinary income tax rate. If you hold for more than one year, it's a long-term capital gain, which usually has a lower tax rate. Robinhood sends you a tax form (Form 1099) at the end of the year showing all your trades.

Dividends, Stock Splits, and Corporate Actions

Some stocks pay dividends — regular cash payments to shareholders. If you own a stock that pays a dividend, Robinhood deposits the payment into your cash balance automatically on the payment date. You can see upcoming dividends on the stock's detail page under "Upcoming Dividend."

When a company does a stock split, it divides each share into multiple shares (or combines multiple shares into one). For example, a 2-for-1 split means each share becomes two shares at half the price. Robinhood handles stock splits automatically — your share count and cost basis adjust, but your total investment value stays the same.

Other corporate actions like mergers, spinoffs, or special dividends also happen automatically in your account. Robinhood notifies you of these events, but you don't need to do anything.

Fees, Restrictions, and Things to Know

Robinhood charges no commission on stock and ETF trades. However, there are other costs. If you use margin (borrowed money), you pay interest on the loan. If you trade options (a more advanced product), there's a $0.65 per-contract fee. If you withdraw cash before a deposit fully settles, you may face restrictions on trading.

Robinhood restricts trading during market hours that fall outside the regular 9:30 a.m. to 4 p.m. Eastern window. You can place orders for stocks before the market opens (starting at 9 a.m.) or after it closes (until 6 p.m.), but these orders execute at different prices and may not fill at all. This is called extended-hours trading, and it's riskier because fewer buyers and sellers are active.

Robinhood also has pattern day trader rules. If you make four or more day trades (buying and selling the same security on the same day) within five business days, and your account has less than $25,000, Robinhood will restrict your trading for 90 days. This is a federal rule, not a Robinhood rule, but Robinhood enforces it.

Frequently Asked Questions

How long does it take to buy a stock after I place an order?

Market orders usually execute within seconds during market hours (9:30 a.m. to 4 p.m. Eastern, Monday through Friday). If you place an order outside market hours, it will execute when the market opens the next trading day. Limit orders may take longer or may never execute if the price doesn't reach your target.

Can I buy fractional shares on Robinhood?

Yes. Robinhood lets you buy fractional shares, meaning you can invest any dollar amount, not just whole shares. For example, if a stock costs $500 per share and you have $100, you can buy 0.2 shares. This is useful for building a diversified portfolio with a small amount of money.

What happens if I don't have enough cash to buy a stock?

Your order will be rejected. If you want to buy more, you need to deposit more money from your bank account or sell another holding first. If you have margin enabled, you may be able to borrow, but this carries risk and interest charges.

How do I know if my order went through?

After you confirm an order, Robinhood shows a confirmation screen with your order details. You'll also see the order in your "Stocks" tab — it will show as "Pending" until it executes, then it will show as a completed holding. You can also check your account history by tapping the account icon and scrolling through your recent activity.

Can I cancel an order after I place it?

Yes, but only if it hasn't executed yet. Tap the order in your "Stocks" tab and look for a "Cancel" button. If the order has already executed, you can't cancel it — you can only sell the shares you bought. Market orders usually execute so quickly that canceling is rarely possible.