How to Buy Your First Stock
You need a brokerage account, money to invest, and the ticker symbol of the stock you want
Buying a stock means opening an account with a brokerage — a company that buys and sells stocks on your behalf — then placing an order through that account. The brokerage holds your money, executes your trades, and keeps records of what you own. You can open an account online in minutes, fund it from your bank account, and buy a stock the same day.
The process is straightforward, but the choice of brokerage matters because fees, tools, and account minimums vary. Most brokerages charge nothing to buy or sell stocks anymore, but some charge for research, advisory services, or account features. Understanding what you need before you start saves time and money.
Key Takeaways
- You open a brokerage account online, link it to your bank account, and can buy stocks within hours of funding it.
- Most brokerages charge zero commission per trade, but some charge fees for premium features, research tools, or advisory services.
- You need the stock's ticker symbol (a short code like AAPL for Apple) to place an order.
- You can buy a single share or many shares at once, and most brokerages let you start with any amount of money.
- Your first order will show you the current price, let you choose how many shares to buy, and execute immediately during market hours.
Choosing a brokerage that fits your needs
A brokerage is where your money sits and where you place trades. The major ones — Fidelity, Charles Schwab, E*TRADE, Webull, and Robinhood — all offer zero-commission stock trades, meaning you pay nothing per transaction. The differences lie in what else they charge for and what tools they give you.
Fidelity and Charles Schwab offer extensive research, educational content, and phone support at no extra cost. Robinhood and Webull focus on a simple mobile app and fast execution. Some brokerages charge for premium research or advisory services; others charge nothing but make money from lending your shares or from payment for order flow (a practice where market makers pay the brokerage for the right to execute your trades). Read the fee schedule on the brokerage's website before you open an account — it usually takes two minutes to find.
Most brokerages have no account minimum, meaning you can open an account with $1 and buy a stock when you have money. A few still require $500 or $1,000 to start, but these are becoming rare. Check the specific brokerage's requirements before you apply.
Opening an account and funding it
Opening a brokerage account is an online form that takes 10 to 15 minutes. You will need your Social Security number, date of birth, address, and employment information. The brokerage will ask what type of account you want — usually a regular taxable account (called a cash account or margin account) or a retirement account like an IRA. For your first stock purchase, a regular cash account is the standard choice.
After you submit the form, the brokerage verifies your identity and approves your account, usually within hours. You then link your bank account so you can transfer money in. Most brokerages let you transfer money electronically (called an ACH transfer), which takes one to three business days to settle. Some let you deposit by check or wire transfer, which is faster but may cost a fee.
Once your money arrives in your brokerage account, it is ready to invest. You do not have to spend it all at once — you can hold cash in the account and buy stocks whenever you choose.
Finding the stock you want to buy
Every stock has a ticker symbol, a short code that identifies it. Apple is AAPL, Microsoft is MSFT, Tesla is TSLA. You can find a stock's ticker by searching the company name on the brokerage's website or on a financial site like Yahoo Finance or Google Finance. Once you have the ticker, you are ready to place an order.
Most brokerages let you search by company name too, so you do not have to know the ticker in advance. Type "Apple" into the search box and the brokerage will show you AAPL and let you click through to buy it. This is especially useful if you are not sure of the exact spelling or if a company has a common name.
Placing your first order
Once you have found the stock, click "Buy" and the brokerage will show you the current price and ask how many shares you want. If Apple is trading at $150 per share and you have $1,500 to spend, you can buy 10 shares. The brokerage will show you the total cost (10 shares × $150 = $1,500) before you confirm.
You will also choose an order type. A market order buys the stock immediately at whatever the current price is — this is the simplest choice for a first purchase. A limit order lets you set a maximum price you are willing to pay; if the stock is trading above that price, the order waits until it drops. For your first buy, a market order is usually the right choice because it executes right away and you know exactly what you are getting.
After you review the details and confirm, the order executes instantly during market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays). If you place an order after market close or on a weekend, it will execute the next time the market opens. Your brokerage will send you a confirmation showing the number of shares, the price you paid, and the total cost. The shares are now yours and appear in your account.
Understanding costs and taxes
Most brokerages charge zero commission per trade, so buying one share costs the same as buying 100 shares — nothing. However, you pay the market price for the stock itself. If you buy 10 shares of a $150 stock, you pay $1,500 plus any applicable taxes or fees (which are rare at major brokerages).
When you sell a stock for more than you paid, you owe capital gains tax on the profit. The tax rate depends on how long you held the stock and your income level. If you held it for more than one year, you pay long-term capital gains tax, which is usually lower than short-term rates. Your brokerage will send you tax documents at the end of the year showing your gains and losses. You report these on your tax return.
Some brokerages offer tax-loss harvesting tools that automatically sell losing positions to offset gains, reducing your tax bill. This is a feature to look for if you plan to trade actively, but it is not necessary for a first purchase.
What happens after you buy
Once you own a stock, your brokerage account shows your shares and their current value. The value changes every trading day as the stock price moves. You can sell at any time during market hours by clicking "Sell" and choosing how many shares to offload. The money from the sale lands back in your account within one to three business days.
If the company pays a dividend — a cash payment to shareholders — your brokerage will deposit it into your account automatically. You can reinvest the dividend by buying more shares, or you can leave it as cash. Most brokerages let you set this preference in your account settings.
Your brokerage sends you statements showing all your holdings, their values, and any transactions. You can download these statements anytime for your records. If you have questions about your account or a trade, most brokerages offer phone support, email, or live chat.
Frequently Asked Questions
Can I buy a partial share?
Yes. Most major brokerages now let you buy fractional shares, meaning you can spend $50 on a $150 stock and own one-third of a share. This makes it easier to start investing with a small amount of money or to own a diversified mix of stocks without needing thousands of dollars.
What is the difference between a cash account and a margin account?
A cash account requires you to have the money in your account before you buy. A margin account lets you borrow money from the brokerage to buy stocks, paying interest on the borrowed amount. For a first purchase, a cash account is simpler and safer because you only spend money you have.
Can I buy stocks outside market hours?
Market hours are 9:30 a.m. to 4 p.m. Eastern time on weekdays. You can place an order anytime, but it will not execute until the market opens. Some brokerages offer extended-hours trading (before 9:30 a.m. or after 4 p.m.), but prices are less stable and spreads are wider, so this is not recommended for beginners.
Do I need a lot of money to start?
No. Most brokerages have no account minimum, and fractional shares let you buy stocks with any amount. You could open an account with $100 and buy a stock today. The amount you invest should match your financial situation and goals, not the brokerage's requirements.
What if I change my mind after I buy?
You can sell the stock anytime during market hours. If the price has gone up, you make a profit. If it has gone down, you take a loss. There is no penalty for selling — you simply place a sell order and the money returns to your account within one to three business days.