How to Buy Stock Through Fidelity

Open and fund a Fidelity brokerage account first

Before you can buy stock, you need a Fidelity brokerage account. Go to Fidelity.com and select "Open an account." You will choose between a standard individual account, a joint account, or a retirement account like an IRA. Most people buying individual stocks start with a standard individual brokerage account.

During signup, you will provide your name, Social Security number, address, employment information, and investment experience level. Fidelity will verify your identity and typically approve the account within one business day. Once approved, you can log in and link a bank account to transfer money.

Transfer money from your bank into your Fidelity account before placing any trades. You can transfer via electronic bank transfer (which takes three to five business days) or by mailing a check. Some transfers may take longer depending on your bank. You do not need to transfer a large amount — you can start with whatever you plan to invest.

Key Takeaways

• You must open a Fidelity brokerage account and fund it with money from your bank before you can buy any stock.
• Fidelity charges no commission on stock trades, meaning you pay only the stock price itself with no trading fee added on top.
• You can search for and buy stock through Fidelity's website or mobile app by entering the stock ticker symbol and the number of shares you want.
• Market orders execute immediately at the current price, while limit orders let you set a maximum price you are willing to pay.
• Your stock purchases settle within two business days, meaning the shares officially belong to you and the money officially leaves your account on that date.

Search for the stock you want to buy

Log into your Fidelity account and navigate to the "Trade" or "Invest" section. You will see a search box where you can enter the stock's ticker symbol — the one to four letter code that identifies a company. For example, Apple's ticker is AAPL, Microsoft's is MSFT, and Tesla's is TSLA.

If you do not know the ticker symbol, type the company name into the search box and Fidelity will show you matching results. Click on the stock you want to view its current price, recent performance, company information, and news. Take time to review this information before you decide to buy.

Fidelity also offers research tools and analyst reports for most stocks. You can read these to understand what the company does and what factors might affect its price, but remember that past performance does not predict future results.

Choose between a market order and a limit order

Once you have selected your stock, you need to decide what type of order to place. A market order buys the stock immediately at whatever the current market price is. If you place a market order for Apple stock when it is trading at $150 per share, your order will execute at or very close to $150. Market orders are fast and almost always complete, but you do not control the exact price.

A limit order lets you set the maximum price you are willing to pay. If you place a limit order to buy Apple at $148 per share, your order will only execute if the price drops to $148 or lower. Limit orders give you price control, but they may never execute if the stock price never reaches your limit. Your order can sit open for days or weeks waiting for the price to drop.

For most beginning investors, a market order is simpler because it guarantees your trade will go through. Use a limit order if you have a specific price in mind and are willing to wait — or miss the trade entirely — to get it.

Enter the number of shares and review your order

After choosing your order type, enter the number of shares you want to buy. If you have $1,500 in your account and the stock costs $150 per share, you could buy 10 shares (10 × $150 = $1,500). Fidelity will show you the total cost of your order before you confirm it.

Review the order summary carefully. Check the stock ticker, the number of shares, the order type (market or limit), and the total dollar amount. Make sure everything is correct. If you spot an error, you can go back and change it before submitting.

Fidelity charges no commission on stock trades, so you will pay only the price of the shares themselves. There is no hidden trading fee. The only cost is the stock price multiplied by the number of shares.

Submit your order and wait for settlement

Click "Submit" or "Place Order" to send your trade to the market. For a market order, your trade will execute within seconds to minutes during market hours (9:30 a.m. to 4 p.m. Eastern time, Monday through Friday). If you place an order after market hours or on a weekend, it will execute when the market opens the next trading day.

Once your order executes, you will see a confirmation on your screen and receive an email from Fidelity. The confirmation shows the exact price you paid per share and the total cost. However, the trade does not fully settle for two business days. During those two days, the shares are yours to own, but the money is still technically in transit from your bank account.

After settlement is complete, the shares will appear in your account holdings and you will own them outright. You can then sell them, hold them long-term, or buy more shares whenever you want.

Monitor your holdings and understand what you own

Once you own stock, you can view it anytime by logging into your Fidelity account and checking your portfolio. You will see the number of shares you own, the price you paid per share, the current price, and your gain or loss in dollars and percentage.

Stock prices change throughout each trading day. Your holdings may be worth more or less than what you paid, depending on whether the company's stock price has risen or fallen. This is normal. Many investors hold stock for years without selling, betting that the price will rise over time.

If you receive dividends — cash payments that some companies distribute to shareholders — Fidelity will deposit that money into your account automatically. You can choose to reinvest dividends by buying more shares, or you can leave the cash in your account.

Frequently Asked Questions

Do I need a minimum amount of money to open a Fidelity account?

Fidelity does not require a minimum deposit to open a brokerage account. You can open an account with zero dollars and transfer money whenever you are ready. However, you cannot buy stock until you have money in your account.

Can I buy fractional shares through Fidelity?

Yes. Fidelity allows you to buy fractional shares, meaning you can own 0.5 shares or 2.3 shares instead of only whole numbers. This is useful if a stock is expensive and you want to invest a specific dollar amount rather than a specific number of shares.

What happens if I place a limit order that never executes?

Your limit order will remain open until you cancel it or until it expires. Fidelity's default expiration is 60 days, but you can set a different expiration when you place the order. If the stock never reaches your limit price before expiration, the order simply disappears and no trade occurs.

Can I sell stock the same day I buy it?

Yes, you can sell stock anytime during market hours, even the same day you bought it. However, the money from the sale will not settle into your account for two business days. If you trade frequently, you may encounter rules about day trading depending on your account type and balance.

What if I make a mistake after I submit my order?

If your order has not yet executed, you can cancel it through your Fidelity account. Once the order executes, you cannot cancel it, but you can immediately sell the shares if you change your mind. You will pay the current market price when you sell, which may be higher or lower than what you paid.