How to Buy Stocks on Robinhood
Published Aug. 28, 2024
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Robinhood is a highly rated broker, and it's especially popular with younger investors. If you're new to investing, you could be wondering about how you can start buying stocks and building your portfolio.
It's not hard, as Robinhood is known for being user-friendly. To make the process even easier, keep reading for a step-by-step guide covering how to buy stocks on Robinhood.
On Robinhood's Secure Website.
2025 Award Winner
A top pick for beginners, Robinhood combines $0 commission trades, an easy-to-use app, and a rare retirement deposit match.
$0 for stocks, ETFs, and options
$0
On Robinhood's Secure Website.
To invest in stocks on Robinhood, you need to set up an account, fund it, choose the stocks you want, and place an order. Here's a detailed look at each part of the process.
If you don't have one already, you'll need to open a Robinhood account. Choose the option to open an account and go through the application process. Here's the personal information you'll need to provide:
Robinhood will also ask you about your investing experience, your employment situation, and if you want to enable options trading. After you've done this, you can review the required agreements and finish setting up your account.
Robinhood offers traditional brokerage accounts, IRAs, and Roth IRAs. If you're saving for retirement, consider opening an IRA or a Roth IRA for the tax benefits they offer.
You'll need to deposit money to your account, either when you open it or later. There's no account minimum, so you can deposit any amount you want.
To deposit money to your account, log in and select "Account" to open a dropdown menu. Select "Transfers." You can then choose to transfer money to your account from a bank account, debit card, or through a wire transfer.
Search for the stock you want to buy on Robinhood's web platform or its mobile investing app. You'll see its price chart and more information about it, including key statistics, recent news, and analyst ratings.
Remember that it's always important to do your homework on a stock before you invest in it. Investing in the stock market is a great way to build wealth, but it also carries the risk of losing money. You're more likely to be successful if you research investments thoroughly before committing your hard-earned money.
When you're ready, select the order type, the amount you want to purchase, and submit your order. Like most online stock brokers, Robinhood offers several order types, including market orders and limit orders. If you want your order to execute immediately, a market order is generally the best choice for that.
Robinhood offers fractional shares of most stocks, which means you don't need to buy an entire share. With these stocks, you have the option of buying in shares or dollars on the order form.
You sell stocks on Robinhood following the same process as buying stocks. Here's how it works:
If you made a profit, you'll owe capital gains taxes. Check out Motley Fool Money's guide to investing and taxes to learn more about how this works.
Robinhood has all the features you need to invest in stocks, and it's one of the top brokers for beginners with its user-friendly design. It has over 5,000 securities, including stocks and exchange-traded funds (ETFs) listed on U.S. exchanges. It's also a budget-friendly option, since there's no account minimum, and fractional shares allow you to invest with as little as $1.
Like any stock broker, Robinhood has its drawbacks. It doesn't let you buy mutual funds or bonds, and it doesn't offer stock research reports, unless you pay for a Robinhood Gold membership.
While Robinhood isn't perfect, lots of investors love using it. If you're looking for a straightforward platform for buying stocks on your computer or on your phone, Robinhood is an excellent choice.
We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2025.
| Broker | Best For | Commissions | Learn More |
|---|---|---|---|
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Managing your finances under one roof | $0 for stocks, $0 for options contracts |
Learn More for SoFi Active Investing
On SoFi Active Investing's Secure Website. |
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Low mutual fund fees. | $0 per trade |
Learn More for J.P. Morgan Self-Directed Investing
On J.P. Morgan Self-Directed Investing's Secure Website. |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Low fees on stocks, ETFs, crypto, and options | $0 for stocks, ETFs, and options |
Learn More for Robinhood
On Robinhood's Secure Website. |
Here's how to purchase stocks on Robinhood:
Yes, it's safe to invest on Robinhood. Your investments have SIPC insurance coverage of up to $500,000, and cash balances are insured up to $250,000. Robinhood is regulated by the SEC and has security features to protect accounts, including data encryption and two-factor authentication (2FA) required for logins.
No. Robinhood offers commission-free stock trading, and it doesn't take any fees when you buy stocks.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page.
Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.
Investing is risky. Bonus offers subject to terms and conditions, visit robinhood.com/hoodweek for more information. Margin is not suitable for all investors. Robinhood Gold is offered through Robinhood Gold LLC and is a subscription offering services for a fee. Brokerage services offered through Robinhood Financial LLC (member SIPC), a registered broker dealer.
Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.
Investing is risky. Bonus offers subject to terms and conditions, visit robinhood.com/hoodweek for more information. Margin is not suitable for all investors. Robinhood Gold is offered through Robinhood Gold LLC and is a subscription offering services for a fee. Brokerage services offered through Robinhood Financial LLC (member SIPC), a registered broker dealer.
