Where to Buy Stocks Online: Brokers, Accounts, and How to Start

You can buy stocks online through a brokerage — a company that holds your money and executes trades on your behalf

A brokerage is the middleman between you and the stock market. You open an account with them, deposit money, and they let you buy and sell stocks through their website or app. The major brokerages that individuals use are Fidelity, Charles Schwab, E*TRADE, TD Ameritrade, Robinhood, Webull, and Interactive Brokers, though there are dozens of smaller ones. Each charges different fees, offers different research tools, and has different account minimums — some require $0 to start, others require $500 or more.

You do not need a special license or permission to open a brokerage account. You need a Social Security number, proof of identity, and a bank account to fund your initial deposit. The whole process takes 10 to 15 minutes online, and you can usually start trading the same day or the next business day.

Key Takeaways

• A brokerage holds your cash and executes your stock trades; you choose which brokerage based on fees, tools, and account minimums.
• Most brokerages now charge zero commission per trade, so the main cost difference comes from account minimums, research tools, and advisory fees.
• You will need a Social Security number, government ID, and a bank account to fund your first deposit.
• Your first decision is whether you want a regular taxable account or a retirement account like an IRA, because the tax treatment is different.
• Once your account is open and funded, you can search for a stock by ticker symbol and place a buy order in seconds.

Choosing between account types before you pick a brokerage

Before you open an account anywhere, decide what type of account you want. A taxable brokerage account has no contribution limits and no withdrawal restrictions — you can put in as much as you want and take money out whenever you want. But you pay capital gains tax on profits when you sell. A retirement account like a traditional IRA or Roth IRA has contribution limits (usually $6,500 or $7,000 per year, depending on your age) but offers tax advantages: in a traditional IRA you may deduct contributions from your taxes, and in a Roth IRA your withdrawals in retirement are tax-free.

Most brokerages let you open both types of accounts. If you are saving for retirement and have not maxed out an IRA, start there — the tax advantage is real. If you want to invest more than the annual limit, or you are saving for something other than retirement, use a taxable account alongside it.

How fees work at different brokerages

Commission per trade used to be the main cost — you would pay $5 to $10 every time you bought or sold a stock. As of 2020, almost all major brokerages eliminated commission on stock trades, so you pay $0 to buy or sell individual stocks. This changed the landscape completely and made it much cheaper to start small.

The fees that remain vary by brokerage. Some charge nothing for anything if you keep a low balance. Others charge monthly account fees ($5 to $10) if your balance falls below a minimum, or charge for advisory services if you want a human to help you. Some charge for margin (borrowing money to invest) or for certain research tools. Read the fee schedule on the brokerage's website before you open an account — it is usually under "Pricing" or "Fees".

Account minimums also vary. Fidelity, Charles Schwab, and E*TRADE have no minimum. Robinhood has no minimum. Some smaller brokerages require $500 or $1,000 to open an account. If you are starting with less than $500, check the minimum before you apply.

The major brokerages and what sets them apart

Fidelity is one of the largest and has no account minimum, no commission, and extensive research tools and educational content. It is a good default choice if you do not have a strong reason to go elsewhere. Charles Schwab is similar — no minimum, no commission, strong research tools, and good customer service. E*TRADE is also large and full-featured, with no minimum and no commission.

Robinhood is designed for beginners and has a very simple interface, no account minimum, and no commission. It does not offer as many research tools or educational resources as Fidelity or Schwab, but if you want to keep things simple, it works. Webull is similar — simple interface, no minimum, no commission, aimed at newer investors.

Interactive Brokers is aimed at active traders and has lower fees for high-volume trading, but a steeper learning curve and a $500 minimum. Unless you plan to trade frequently, it is probably not the right choice to start.

The honest answer is that for a beginner buying a few stocks and holding them, the choice of brokerage matters less than you might think. Fidelity, Schwab, and E*TRADE are all solid. Robinhood and Webull work fine if you want simplicity. Pick one, open an account, and move on.

Opening an account and making your first deposit

Go to the brokerage's website and click "Open an Account" or "Sign Up". You will enter your name, Social Security number, date of birth, address, and employment information. You will verify your identity — most brokerages do this instantly through a third-party service, though some may ask you to upload a photo of your driver's license.

Once your account is open, you need to fund it. You can link a bank account and transfer money via ACH (automated clearing house), which usually takes one to three business days. Some brokerages let you wire money for faster funding. You do not have to deposit a large amount — you can start with $100 or $500 if that is what you have.

After the money clears, you are ready to buy. Search for a stock by its ticker symbol (for example, AAPL for Apple or MSFT for Microsoft), enter the number of shares you want to buy, and place the order. During market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays), your order executes almost instantly at the current market price. Outside market hours, your order waits until the market opens the next day.

Understanding order types and timing

When you place an order to buy a stock, you choose an order type. A market order buys immediately at whatever the current price is — it is the simplest and fastest. A limit order lets you set a maximum price you are willing to pay; if the stock does not reach that price, your order does not execute. Limit orders are useful if you want to avoid overpaying, but they can also mean you miss out if the stock never hits your price.

You also choose timing. A day order expires at the end of the trading day if it has not executed. A good-till-canceled order (GTC) stays active until you cancel it or it executes, which can be weeks or months. Most brokerages default to day orders for market orders and GTC for limit orders, but you can change this when you place the order.

For a beginner, a market order during regular market hours is the simplest approach. You see the price, you click buy, and it happens.

What happens after you buy

Once you own a stock, your brokerage holds it in your account. You can see it listed under "Holdings" or "Positions" on your account dashboard, along with how much you paid for it, what it is worth now, and your gain or loss. You do not receive a physical certificate — everything is electronic.

If the company pays a dividend (a cash payment to shareholders), it goes into your account automatically. If you want to sell, you search for the stock, enter the number of shares, and place a sell order the same way you placed a buy order. The cash from the sale lands in your account and you can use it to buy something else or withdraw it to your bank account.

Your brokerage sends you tax documents at the end of the year — a 1099-B form that reports your sales and gains, and a 1099-DIV form if you received dividends. You use these to file your taxes.

Frequently Asked Questions

Do I need a lot of money to start buying stocks online?

No. Most brokerages have no account minimum and no commission per trade, so you can start with $100 or even $50. The only limit is the price of the stock itself — if a stock costs $150 per share, you need at least $150 to buy one share. Some brokerages offer fractional shares, which means you can buy a portion of a share for less.

Is it safe to keep my money at a brokerage?

Yes. Brokerages are regulated by the SEC and FINRA, and most are members of SIPC (Securities Investor Protection Corporation), which protects your account up to $500,000 if the brokerage fails. Your stocks are held in your name, not the brokerage's name, so they are yours even if something goes wrong with the company.

Can I buy stocks on my phone?

Yes. All major brokerages have mobile apps for iOS and Android. The app works the same way as the website — you can search for a stock, place an order, and check your holdings. Some people find the app easier to use than the website.

What is the difference between a market order and a limit order?

A market order buys immediately at the current price. A limit order lets you set a maximum price and only buys if the stock reaches that price or lower. Market orders are faster and more certain to execute; limit orders give you control over price but might not execute at all.

When can I buy stocks?

The stock market is open Monday through Friday, 9:30 a.m. to 4 p.m. Eastern time. You can place orders outside these hours, but they 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 predictable and spreads are wider.