How to Buy Your First Stock Online
Open a brokerage account and fund it
To buy stocks online, you need an account with a brokerage firm — a company licensed to buy and sell securities on your behalf. You choose a brokerage, provide your name, address, Social Security number, and employment information, then link a bank account so you can deposit money. The whole process takes 10 to 15 minutes and happens entirely on the brokerage's website or app.
Common brokerages for individual investors include Fidelity, Charles Schwab, E*TRADE, TD Ameritrade, and Robinhood. Each one charges different fees, offers different research tools, and has different minimum account balances — some have no minimum at all. Once your account is open and your bank account is linked, you can transfer money in. Most transfers take one to three business days to appear in your brokerage account.
You do not need a large sum to start. Many brokerages let you open an account with as little as $1, though some have minimums of $500 or $1,000 if you want access to certain features like financial advice or premium research tools.
Key Takeaways
- You open a brokerage account online by providing your name, address, Social Security number, and linking a bank account — the process takes about 15 minutes.
- Once your account is funded, you search for a stock by its ticker symbol (a one- to four-letter code like AAPL for Apple), enter how many shares you want, and place your order.
- Most online brokerages charge no commission to buy or sell stocks, though some charge fees for certain types of orders or accounts.
- Your order executes during market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays), and the shares appear in your account within one to two business days.
- You can sell stocks the same way you bought them — by searching the stock, entering the number of shares, and confirming the sale.
Search for a stock and place an order
Once your account has money in it, you are ready to buy. Every stock has a ticker symbol — a short code of one to four letters. Apple is AAPL, Microsoft is MSFT, Tesla is TSLA. You can find a company's ticker on the brokerage's website, on financial news sites like Yahoo Finance or Google Finance, or by typing the company name into the brokerage's search bar.
Click on the stock, and the brokerage will show you its current price, recent performance, and basic information about the company. Then you enter how many shares you want to buy. If a stock costs $150 per share and you have $1,500 in your account, you can buy 10 shares. The brokerage will show you the total cost before you confirm.
You will also choose the type of order. A market order buys the stock at whatever the current price is right now — it executes almost instantly during market hours. A limit order lets you set a maximum price you are willing to pay; if the stock never drops to that price, the order never fills. Most beginners use market orders because they may provide the trade will go through.
Understand when your order executes and settles
Stock markets in the United States are open Monday through Friday, 9:30 a.m. to 4 p.m. Eastern time. If you place an order during those hours, it executes almost immediately at the current market price. If you place an order outside market hours — at night, on weekends, or on holidays — most brokerages will hold it and execute it when the market opens the next trading day.
After your order executes, the shares do not appear in your account instantly. Instead, the trade settles over the next one to two business days. During that time, the brokerage and the seller's brokerage confirm the details and transfer ownership. You own the shares as soon as the order executes, but you cannot sell them until settlement is complete.
This delay matters if you are planning to buy and sell quickly. You cannot use the money from a sale to buy another stock until the first sale has settled, or you may trigger a rule called the free-riding violation, which can temporarily freeze your account.
Know what fees you might pay
Most major online brokerages charge zero commission to buy or sell stocks — meaning you do not pay a per-trade fee. This is a recent change; 10 years ago, most brokerages charged $5 to $10 per trade. Today, the cost to buy or sell is built into the price you see, called the bid-ask spread — the tiny difference between what buyers will pay and what sellers will accept.
Some brokerages charge fees for other things: account maintenance fees if your balance is below a certain amount, fees for certain types of orders (like stop-loss orders on some platforms), or fees to transfer your account to a different brokerage. Read the fee schedule on the brokerage's website before you open an account, or call their customer service line to ask.
You will also pay taxes on any profit you make when you sell a stock. If you hold the stock for more than one year before selling, the profit is taxed as a long-term capital gain, usually at a lower rate than ordinary income. If you sell within one year, it is taxed as a short-term capital gain at your regular income tax rate.
Sell a stock when you are ready
Selling works the same way as buying. Search for the stock in your brokerage account, click on it, and enter how many shares you want to sell. Choose market order or limit order, review the total proceeds, and confirm. The order executes during market hours, and the money settles into your account within one to two business days.
You can sell part of your position — if you own 100 shares, you can sell 30 and keep 70 — or all of it. Once the sale settles, that money is back in your brokerage account as cash, and you can use it to buy other stocks, withdraw it to your bank account, or leave it sitting there.
Avoid common mistakes when starting out
New investors often buy stocks based on a tip from a friend or a headline they saw, without understanding what the company does or whether the price is reasonable. Before you buy, spend 10 minutes reading about the company on its investor relations website or on a financial news site. You do not need to become an expert, but you should know what business you are investing in.
Another common mistake is trading too frequently. Every time you buy and sell, you pay the bid-ask spread and trigger a taxable event. Investors who hold stocks for years tend to build wealth more reliably than those who trade in and out every few weeks. If you are new to investing, consider buying a stock and holding it for at least a year before deciding whether to sell.
A third mistake is putting all your money into one stock. If that company runs into trouble, your entire investment suffers. Most financial advisors recommend owning at least 10 to 20 different stocks, or using a mutual fund or ETF to own many stocks at once with a single purchase.
Frequently Asked Questions
Do I need a lot of money to start buying stocks?
No. Many brokerages have no minimum account balance, so you can open an account with $1 and buy fractional shares — meaning you can own part of a $500 stock if you only have $50. Some brokerages do require a minimum of $500 or $1,000 to access certain features, but basic stock buying is available to anyone.
What is the difference between a market order and a limit order?
A market order buys or sells immediately at the current price — it is may provide to execute but the price may be slightly different from what you saw. A limit order lets you set a maximum price you will pay (or minimum price you will accept when selling); it only executes if the stock reaches that price, so you might miss the trade entirely. Market orders are simpler for beginners.
Can I buy stocks outside market hours?
Yes, 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 spreads are wider and prices are less reliable during those times. Most beginners should stick to regular market hours.
How long does it take to see my shares in my account?
Your order executes within seconds during market hours, but the trade settles over the next one to two business days. You own the shares immediately, but you cannot sell them until settlement is complete. The exact timing depends on your brokerage and the stock exchange.
What happens if I sell a stock at a loss?
You can deduct the loss from your taxes, which can offset gains from other investments or up to $3,000 of ordinary income in a single year. Any losses beyond that carry forward to future years. Keep records of your purchase price and sale price so you can calculate your gain or loss accurately.