How to read and set up your Robinhood account
read the Robinhood app from the Apple App Store or Google Play Store, then open it and tap "Create Account." You will need a valid email address, a Social Security number, and a government-issued ID. Robinhood will ask for your legal name, date of birth, and address during signup.
After you enter your personal information, Robinhood sends a verification code to your email. Enter that code in the app to confirm your email address. Next, you will upload a photo of your ID — take a clear photo of the front and back, or use your phone's camera to capture both sides. Robinhood's system reads the ID automatically.
Once your identity is verified, you will answer questions about your investment experience and financial situation. These questions determine what types of accounts and trading features Robinhood will let you use. Answer honestly — Robinhood uses this information to follow federal rules about who can trade certain products.
Finally, link a bank account. Tap the account icon at the bottom right, select "Account," then "Linked Banks." Enter your bank's name and your login credentials. Robinhood will verify the account by depositing two small amounts (usually under $1 each) into your bank account within one to two business days. Check your bank statement, then return to the app and enter those amounts to confirm the link.
Key Takeaways
- You need a valid email, Social Security number, and government ID to create an account, and the whole process takes about 10 to 15 minutes.
- Robinhood verifies your bank account by depositing two small amounts that you must confirm by entering the exact dollar figures back into the app.
- The questions about your investment experience determine which trading features you can access, so answer them truthfully.
- You cannot buy or sell stocks until your bank account is fully linked and verified.
- Robinhood offers both a standard taxable brokerage account and an IRA for retirement savings, and you choose which type during signup.
Finding and buying a stock or ETF
Tap the search icon (magnifying glass) at the bottom of the home screen. Type the company name or stock ticker symbol — for example, "Apple" or "AAPL" for Apple Inc. Robinhood shows you the stock's current price, a chart of its price over time, and basic information like the company's sector and market cap.
Scroll down to see news articles about the company and a list of similar stocks. When you are ready to buy, tap the green "Buy" button. A window opens asking how many shares you want. You can enter a whole number of shares, or you can buy a fractional share — Robinhood lets you invest as little as $1 in most stocks, which means you can own a piece of a share even if the full share costs hundreds of dollars.
After you enter the number of shares, Robinhood shows you the total cost and asks you to confirm. Tap "Review Order," check the details one more time, then tap "Submit Order." Your order goes through when ready during market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays). If you place an order after market hours, it will execute when the market opens the next trading day.
Your new shares appear in your portfolio within seconds. You can see them listed under "Stocks" in the home screen, along with how much you paid and what they are worth right now.
Understanding your portfolio and account balance
Your portfolio is the list of everything you own. Tap "Account" at the bottom right, then "Portfolio" to see all your holdings. For each stock or ETF, Robinhood shows the number of shares you own, what you paid for them, and their current value. It also shows your "gain" or "loss" — the difference between what you paid and what they are worth now.
At the top of the portfolio screen, you see your total account value and your total gain or loss across all your holdings. If the number is green, you have made money overall. If it is red, your holdings are worth less than you paid. This number changes throughout the trading day as stock prices move.
Your "Buying Power" is the amount of cash you have available to invest. When you deposit money into your Robinhood account, it usually becomes available to trade within one to three business days. Robinhood shows your buying power at the top of the home screen. When you buy a stock, your buying power decreases by the amount you spent.
If you sell a stock, the money goes back into your account as cash. You can then use that cash to buy something else, or you can transfer it back to your bank account. To transfer money out, tap "Account," then "Transfers," then "Withdraw." Enter the amount and select your linked bank account. The money typically arrives in your bank account within one to three business days.
Placing different types of orders
By default, Robinhood places a market order, which buys or sells your stock at whatever price it is trading at right now. Market orders go through almost when ready during market hours, but the exact price you pay might be slightly different from the price you saw on screen, because stock prices move constantly.
If you want more control over the price you pay, you can place a limit order. Tap "Buy" or "Sell," enter the number of shares, then tap "Order Type" and select "Limit." Enter the maximum price you are willing to pay (for a buy) or the minimum price you are willing to accept (for a sell). Your order will only go through if the stock reaches that price. If the price never reaches your limit, your order stays open until you cancel it or until the end of the trading day.
You can also set orders to execute at specific times. When you place an order, tap "Time in Force" and choose between "Day" (the order expires at the end of today's trading) or "Good for 90 Days" (the order stays open for up to 90 calendar days). Most traders use "Day" orders because they are simpler and do not carry over to the next day.
Robinhood also offers stop-loss orders and stop-limit orders for more advanced traders. A stop-loss order automatically sells your stock if the price drops to a certain level, which can protect you from bigger losses. These features are available in the app but require you to have answered the investment experience questions honestly during signup.
Depositing and withdrawing money
To add money to your account, tap "Account" at the bottom right, then "Transfers," then "Deposit." Enter the amount you want to deposit and select your linked bank account. Robinhood will pull the money from your bank account. The deposit usually shows up in your Robinhood account within one to three business days, though some banks process it faster.
You can deposit as much as you want, but Robinhood has limits on how often you can transfer money. If you use Robinhood Gold (a paid subscription), you can make unlimited transfers. With a standard account, you can transfer money as often as you want, but your bank may have its own limits on how many transfers you can make per month.
To withdraw money, tap "Account," then "Transfers," then "Withdraw." Enter the amount and select your linked bank account. The money leaves your Robinhood account when ready, but it takes one to three business days to arrive in your bank account. You can only withdraw cash that is not invested in stocks — if you want to withdraw more than your cash balance, you must sell some stocks first.
Viewing your transaction history and tax documents
Robinhood keeps a record of every trade you make. Tap "Account," then "History," to see a list of all your buys and sells, organized by date. Each transaction shows the stock ticker, the number of shares, the price per share, and the total amount you spent or received. You can tap any transaction to see more details.
At the end of each year, Robinhood generates tax documents for you. If you made any trades, you will receive a Form 1099-B, which reports your sales to the IRS. If you earned dividends (payments some companies make to shareholders), you will receive a Form 1099-DIV. Robinhood sends these documents to your email and makes them available in the app under "Account," then "Tax Documents."
You will need these documents when you file your taxes. If you use tax preparation software or work with a tax professional, they will ask you for your 1099 forms. Keep your transaction history organized — Robinhood's records show your cost basis (what you paid for each share), which you need to calculate your capital gains or losses for taxes.
Common mistakes to avoid
Do not place a market order if you are not watching the screen. Stock prices can move quickly, especially for smaller companies or during busy trading times. If you place a market order and then look away, you might end up paying more (or receiving less) than you expected. Use a limit order if you want to control the exact price.
Do not forget that your deposits take time to clear. If you deposit money on a Friday, it might not be available to trade until Monday or Tuesday. Plan ahead if you want to buy something on a specific day.
Do not sell stocks just because the price dropped for a day or two. Stock prices go up and down constantly. Many new investors panic and sell during a small drop, then watch the stock recover and wish they had held on. Think about why you bought the stock in the first place before you sell.
Do not ignore your tax documents. Robinhood sends 1099 forms to the IRS automatically, so the IRS knows about your trades even if you do not report them. Failing to report your gains can result in penalties and interest.
Frequently Asked Questions
How long does it take to get approved to start trading?
Most accounts are approved within a few minutes to a few hours. Your bank account verification takes one to three business days, so that is usually the longest part of the process. You cannot buy or sell stocks until your bank account is fully linked.
Can I buy stocks after the market closes?
You can place an order anytime, but it will not go through until the market opens. If you place an order after 4 p.m. Eastern time on a weekday, it will execute the next trading day at the market open (9:30 a.m.). Weekend and holiday orders execute on the next trading day.
What happens if I do not have enough buying power for a stock?
Robinhood will not let you place an order if you do not have enough cash. You can either deposit more money, sell some of your other stocks, or buy a fractional share of the stock you want instead of a whole share.
Can I cancel an order after I place it?
Yes, but only if the order has not executed yet. If you placed a market order during market hours, it probably already went through and you cannot cancel it. If you placed a limit order that has not filled, you can cancel it by going to "Account," then "Orders," then tapping the order and selecting "Cancel."
Do I have to pay taxes on stocks I own but have not sold?
No. You only owe taxes when you sell a stock and realize a gain. Stocks you still own are not taxed until you sell them. However, if your stocks pay dividends, you owe taxes on the dividend income in the year you receive it, even if you do not sell the stock.