Robinhood has revolutionized how people invest by offering commission-free trading through a user-friendly mobile app. Whether you’re completely new to investing or just new to the Robinhood app, this guide will walk you through every step — from opening an account to buying your first stock or cryptocurrency.
What You’ll Learn in This Guide
- How to open and verify your Robinhood account
- How to connect your bank and fund your account
- How to buy and sell stocks or ETFs
- How to trade crypto
- How to navigate the Robinhood mobile interface
Step 1: Sign Up
Start by going on Robinhood. You’ll be taken to a landing page where you’ll need to enter your email to get started.
After submitting your email, you’ll be directed to download the Robinhood app from your device’s App Store (iOS or Android). Once the app is installed, open it and tap Sign Up.
Step 2: Enter Your Personal Information
Robinhood is a regulated brokerage, so it needs to collect some personal information to verify your identity — this is standard for all brokerage platforms.
Here’s what you’ll be asked to provide:
- Email address (again, for verification)
- Create a password
- First and last name (as shown on your government-issued ID)
- Phone number (for 2FA and security; you’ll receive a verification code via text)
- Date of birth
- Residential address
- Citizenship status
- Social Security Number (SSN) (used for tax and identification purposes)
After submitting these details, you’ll go through a brief questionnaire.
Step 3: Answer Robinhood’s Regulatory Questions
Robinhood will now ask you a series of compliance questions. These help determine whether you meet legal and regulatory requirements.
- Do you want to enable options trading?
If you’re a beginner, it’s best to skip this for now. You can enable it later once you’re more experienced. - Employment status and occupation
You’ll be asked to enter details about your employment or specify if you’re unemployed or self-employed. - Are you affiliated with a public company or a government official?
Most users will answer “no” to this question unless you work in finance or politics.
Step 4: Review Agreements and Finalize Sign-Up
Before your account is officially created, you’ll need to review and accept Robinhood’s legal disclosures, including:
- Customer agreement
- Margin agreement (if applicable)
- Privacy policy
- Market data disclosures
Once you’ve reviewed and accepted the terms, your Robinhood account is officially open!
Step 5: Link Your Bank Account and Add Funds
To start investing, you need to fund your account.
Robinhood uses Plaid, a secure financial integration tool, to connect your bank.
Here’s how to do it:
- Tap Continue on the funding screen.
- Enter your phone number.
- Choose your bank (e.g., Capital One, Chase, Wells Fargo).
- Log in to your bank securely through Plaid.
- Grant access to Robinhood for fund transfers.
Once your bank is linked, you can initiate your first transfer:
- Select the bank account as the funding source.
- Choose the amount you want to transfer (you can start with as little as $1).
- Tap Review, then swipe to submit.
Even though the app may mention a 9-day processing window, Robinhood offers instant deposits for most accounts, so you’ll usually be able to invest within seconds.
Step 6: Buy Your First Stock or ETF
Now that you’re funded, it’s time to make your first investment.
- Tap the search icon (magnifying glass) at the bottom.
- Type the name or ticker symbol of the stock/ETF (e.g., “ROBINHOOD” or “HOOD”).
- Select the stock from the list.
- Tap Trade, then Buy.
- Enter the amount in dollars (e.g., $5 — Robinhood allows fractional shares).
- Tap Review, then Swipe up to Submit.
Note: If the market is closed, your order will be queued and executed when trading resumes.
Step 7: Sell Stocks or ETFs
To sell a stock:
- Return to the main dashboard.
- Scroll down to Your Holdings.
- Tap on the stock you want to sell.
- Tap Trade, then Sell.
- Enter the amount you want to sell (again, partial shares are allowed).
- Tap Review, then swipe to Submit.
Robinhood typically uses market orders for fractional shares, which execute at the current market price.
Step 8: Buy and Sell Crypto
Robinhood also allows you to trade cryptocurrency without needing a separate wallet.
To buy crypto (e.g., Bitcoin):
- Tap the crypto icon at the bottom of your screen.
- Choose the coin you want to buy (e.g., Bitcoin).
- Tap Buy, enter the amount (e.g., $5).
- Review and accept the Crypto Agreement if prompted.
- Swipe up to submit your order.
Robinhood doesn’t charge commission on crypto trades, but they do apply a spread. For example, a $5 Bitcoin transaction may cost around 3 cents at a 0.59% spread.
To sell crypto:
- Go back to your crypto holdings.
- Tap on the coin.
- Tap Sell, enter the amount.
- Swipe to complete the transaction.
Bonus: Tips for Navigating the Robinhood App
Here are some helpful navigation tips:
- Search Bar: Use this to look up stocks, ETFs, and crypto assets.
- Watchlists: Add your favorite investments to keep track of them.
- Portfolio Overview: Your dashboard displays your total balance, invested assets, and gains/losses.
- Notifications: Get price alerts, trade confirmations, and market updates.
- Account Menu: Tap the person icon to manage settings, documents, and security.
Final Thoughts
Robinhood app is designed for simplicity and accessibility, making it a great entry point for new investors. With no commission fees, fractional shares, and a sleek mobile interface, it’s never been easier to start investing.
Just remember:
- Always do your research before investing.
- Only invest money you can afford to lose.
- Consider starting with ETFs or large-cap stocks if you’re new to the market.
- Refrain from enabling advanced features (like options trading) until you understand the risks.
Once you get comfortable, the Robinhood app gives you everything you need to explore the financial markets at your own pace.
Ready to get started?
Download the Robinhood app and make your first investment today!
