In this article you’ll learn the four different ways to buy stock with Robinhood and my opinion on using the app overall. The following steps will guide you on opening an account, creating a watchlist, connecting your bank as well as transferring funds, and finally how to buy stock with Robinhood.
I’ve made this article as beginner friendly as possible, but if you see something that you’d like explained in further detail, feel welcome to comment below.
Open a Robinhood Account, it’s free.
First things first, if you haven’t already opened up an account, use this link and we’ll both get a free stock. Robinhood will choose a free stock at random that could be worth anywhere from $2.50 to $200. So, in addition to the app being commission-free, throwing in a free stock is another great incentive to start trading with Robinhood.
Create a Watchlist
This is basically a handy way of listing companies you’d like to watch and analyze in the future. Start by looking up the name of the company or it’s stock ticker in the search bar. Then, find the button that says ‘Add to Watchlist’. After that, navigate back to the homepage of the app to view the stock in your watchlist.
Having a watchlist is a nice feature for giving you a basic overview of the stocks current price.
Connect Your Bank and Transfer Funds
If you’re on a mobile device, there should be a prompt to connect your bank account so that you can get started trading. This is how I went about connecting my bank account. It was a quick process that took less than 5 minutes.
If you’re on a desktop device, click on the ‘account’ tab at the top right of the screen. Find and click on the ‘banking’ option from the dropdown menu. You’ll be able to connect your bank account and transfer funds from this page.
Buy Stock With Robinhood
This is the fun part but before you put in an order you should know about the four different ways you can place an order on Robinhood.
- Market Order: This is the default buying option in Robinhood. It allows you to buy stock for its current price, in real-time. This type of order executes as long as it’s within 5% of the current market price.
- Limit Order: This option allows you to set the maximum price or limit you’re willing to pay for a share. This type of order executes at the market price you input.
- Stop Loss Order: This option triggers a market order to buy when the Stop Price is met. You’ll input the Stop Price you’d like to buy stock at, and once the market reaches this price, a stop loss order is executed to buy stock at your chosen price.
- Stop Limit Order: This option is kind of like a stop loss order in the way that it buys shares. With the option, you’ll input two numbers: the Stop Price and and the Limit Price. Once the Stop Price is met, a Limit Order is placed for the amount that you set.
These are the four different ways you can buy stock with Robinhood. Personally, I place limit orders whenever I decide on a stock I want to buy. But as I’m still relatively new to trading, I’m going to experiment with placing different orders later on.
Robinhood is a great platform to start investing in the stock market. It offers commission free trading for life and has a clean and intuitive user interface for both mobile and desktop devices. It does offer some recent news and company insights, though I’ve read that people wish they offered a more extensive selection of news articles.
Honestly, I don’t rely on company research from the Robinhood app alone, and I don’t think most investors do either. If you want to learn more about a company before you buy shares, do research on Google. Make sure to review both good and bad headlines to avoid confirmation bias. (I digress.)
Overall, I enjoy using Robinhood and definitely recommend it to beginner investors because of how user-friendly it is. If you’d like to open an account with Robinhood, please use my link so we both get a free stock!