How to Buy Stocks on Robinhood & Use Key Features (Beginner’s Guide)

Disclaimer: This article is for educational purposes only and is not financial advice. Investing involves risk, including the possible loss of money.

Once your Robinhood account is open and funded, the next step is learning how to actually use the platform. This guide walks you through the most important features for beginners: how to buy stocks and fractional shares, how to set up recurring investments, how to enable dividend reinvestment (DRIP), and how stock lending works.

🎁 Join here to claim your free stock if you don’t already have an account.

Official Robinhood video showing how to buy stocks on the platform.

How to Navigate Robinhood (Quick Overview)

The Robinhood app is designed to be simple. Here are the main areas you’ll use:

  • Home — Shows your portfolio value and recent activity
  • Search (magnifying glass) — Find stocks, ETFs, or crypto
  • Account (person icon) — Settings, history, transfers, and account features

Most actions start by searching for a stock or ETF, opening its page, and tapping Trade or Buy.

How to Buy Stocks and Fractional Shares

Robinhood lets you buy full shares or fractional shares (as little as $1 worth of most stocks and ETFs).

  1. Tap the search icon and type the company name or ticker (example: AAPL for Apple).
  2. Tap the stock to open its detail page.
  3. Tap Trade → Buy.
  4. Choose whether to buy in Dollars or Shares.
  5. Enter the amount (minimum $1 for fractional shares).
  6. Review the order and swipe up or tap to submit.

Tip for beginners: Buying in dollars is usually easier when you’re just starting. You can invest any amount you want without needing enough money for a full share.

How to Set Up Recurring Investments

Recurring investments let you automatically buy a stock or ETF on a schedule (daily, weekly, every two weeks, or monthly). This is one of the best features for long-term beginners.

  1. Open the stock or ETF you want to invest in regularly.
  2. Tap Trade → Buy.
  3. Open the order type menu and select Recurring Investment.
  4. Choose the dollar amount, frequency, start date, and payment method.
  5. Review and submit.

You can pause, edit, or cancel a recurring investment at any time from your account settings.

How to Enable Dividend Reinvestment (DRIP)

Dividend Reinvestment (DRIP) automatically uses any cash dividends you receive to buy more shares of the same stock or ETF.

  1. Go to Account → Menu (three lines) → Investing.
  2. Find Dividend Reinvestment and turn it on.
  3. Select which stocks or ETFs you want to reinvest dividends for.

Once enabled, future eligible dividends will be reinvested automatically instead of sitting as cash.

How to Enable Stock Lending

Stock Lending allows Robinhood to lend out certain shares you own to other market participants. In return, you can earn extra income. You can still sell your shares at any time.

Eligibility usually requires one of the following:

  • At least $5,000 in total account value, or
  • At least $25,000 in reported income, or
  • Some trading experience

To turn it on:

  1. Go to Account → Menu → Investing.
  2. Find Stock Lending and select Activate Stock Lending.
  3. Follow the prompts and review the terms.

Note: Fractional shares and shares held on margin are generally not eligible to be lent.

Helpful Tips for Beginners

  • Start small — you can buy as little as $1 of many stocks.
  • Consider broad ETFs (like ones that track the S&P 500) instead of individual stocks when you’re new.
  • Use recurring investments to build the habit of investing regularly.
  • Turn on DRIP if you own dividend-paying stocks or ETFs.
  • Only enable stock lending after you understand how it works.

Final Thoughts

Robinhood makes it very easy to buy stocks, invest small amounts, and automate good habits. Once your account is funded, the most important steps are learning how to place a simple buy order, setting up recurring investments, and deciding whether features like DRIP or stock lending make sense for you.

Take your time, start with amounts you’re comfortable with, and focus on consistency rather than trying to time the market.

Don’t have a Robinhood account yet?
Join here to claim your free stock

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