Where to Buy Stocks Online

You can buy stocks through a brokerage account, which you open online in minutes

A brokerage is a company that lets you buy and sell stocks through an account you control. You open the account online, link a bank account or transfer money in, and then place orders to buy stocks whenever you want. The brokerage holds your stocks and keeps track of what you own. Most brokerages charge no fee to open an account and no fee per trade — you pay only when you sell at a profit (through capital gains tax, which you owe to the government, not the brokerage).

The main brokerages used by individual investors are Fidelity, Charles Schwab, E*TRADE, Interactive Brokers, and Robinhood. Smaller brokerages exist, but these five handle the bulk of retail trading and all offer the same basic service: a place to buy stocks, hold them, and sell them. The choice between them usually comes down to the tools they offer, how easy their apps are to use, and whether they offer features you specifically want — like fractional shares (buying a piece of a stock instead of a whole share) or access to stocks that trade outside regular hours.

Key Takeaways

• You open a brokerage account online by providing your name, address, Social Security number, and bank details — the process takes 10 to 15 minutes.
• Most major brokerages charge zero dollars per trade and zero dollars to hold an account, so cost is not the main reason to pick one over another.
• You can buy individual stocks by searching for the company's ticker symbol (a short code like AAPL for Apple) and entering how many shares you want.
• Your stocks sit in your brokerage account and are insured up to $500,000 by the Securities Investor Protection Corporation (SIPC) if the brokerage fails.
• Some brokerages let you buy fractional shares, which means you can invest a set dollar amount instead of buying whole shares at whatever the current price is.

How to open a brokerage account

Opening an account takes about 10 to 15 minutes and requires information you already have. You will need your full name, date of birth, address, Social Security number, and details of a bank account you can transfer money from. Most brokerages ask why you are opening the account (usually "personal investing" or "long-term investing") and whether you have investment experience — these questions do not disqualify you; they are for the brokerage's records.

After you submit the form, the brokerage verifies your identity and approves the account, usually within one business day. You then link a bank account or transfer money in. Some brokerages let you start trading immediately with a small amount; others require the money to clear first, which takes one to three business days depending on your bank. Once money is in the account, you can place your first stock order.

How to place a stock order

To buy a stock, you search for it by its ticker symbol — a short code assigned to every publicly traded company. Apple is AAPL, Microsoft is MSFT, Tesla is TSLA. You can find a company's ticker by typing its name into the brokerage's search box. Once you find the stock, you enter how many shares you want to buy and confirm the order.

Most brokerages offer two types of orders: a market order, which buys the stock immediately at whatever the current price is, and a limit order, which buys only if the price drops to a level you set. For a beginner, a market order is simpler — you see the current price, decide whether you want to buy at that price, and the order goes through in seconds. A limit order is useful if you want to buy only if the price falls, but it may never execute if the stock never reaches your target price.

What happens after you buy

Once your order fills, the stock appears in your account and you own it. The brokerage holds it for you and sends you statements showing what you own and what it is worth. You can sell whenever you want by searching for the stock again, entering how many shares to sell, and confirming. The money from the sale goes back into your brokerage account as cash, which you can then use to buy other stocks or transfer back to your bank.

Your stocks are protected by the Securities Investor Protection Corporation (SIPC), a government-backed insurance program. If your brokerage fails, SIPC covers up to $500,000 per account — $250,000 in cash and $250,000 in securities. This protection is automatic; you do not need to do anything. If you have more than $500,000 in one account, consider splitting your money across multiple brokerages to stay within the limit.

Differences between the major brokerages

Fidelity and Charles Schwab are the largest and most established. Both offer zero-commission trading, research tools, educational content, and access to fractional shares. Fidelity has a reputation for strong customer service; Schwab is known for its educational resources. E*TRADE sits in the middle — solid tools, good customer service, and a mobile app that many traders prefer. Interactive Brokers is built for active traders who want advanced tools and access to international markets; it has a steeper learning curve and lower account minimums. Robinhood is the simplest and most mobile-focused, with a clean app and fractional shares, but fewer research tools than the others.

For a beginner buying individual stocks, Fidelity, Schwab, or E*TRADE are the safest choices because they offer everything you need and have been around for decades. Robinhood works if you want simplicity and do not mind fewer tools. Interactive Brokers is worth considering only if you plan to trade frequently or want access to international stocks.

Fractional shares and minimum investments

Most stocks trade at prices between $50 and $300 per share, which means buying even one share can require a significant amount of money. Fractional shares solve this by letting you buy a piece of a stock instead of a whole share. If a stock costs $500 per share and you have $100, you can buy 0.2 shares. Fidelity, Schwab, E*TRADE, and Robinhood all offer fractional shares with no minimum investment — you can start with $1 if you want.

Fractional shares are useful for beginners because they let you spread a small amount of money across many stocks instead of being forced to buy one expensive stock. They also make it easier to invest a set dollar amount each month — you can say "I want to invest $500 this month" and buy fractional shares of multiple companies instead of waiting until you have enough for a whole share of one stock.

Taxes and record-keeping

When you sell a stock for more than you paid, you owe capital gains tax on the profit. The brokerage does not collect this tax — you owe it to the government when you file your tax return. Your brokerage sends you a form called a 1099-B each January listing all your sales from the previous year, which you use to calculate your gains and losses.

Short-term capital gains (stocks held less than one year) are taxed as ordinary income at your regular tax rate. Long-term capital gains (stocks held more than one year) are taxed at a lower rate — 0%, 15%, or 20% depending on your income. This is why many investors hold stocks for at least a year before selling. Keep records of what you paid for each stock and when you bought it; your brokerage tracks this automatically, but having your own records helps if there is ever a discrepancy.

Frequently Asked Questions

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

No. With fractional shares, you can start with $1 or $10 at most major brokerages. Many investors start with $100 to $500 and add more over time. The amount does not matter as much as starting early and investing regularly.

Can I buy stocks on my phone?

Yes. All major brokerages have mobile apps that let you search for stocks, place orders, and check your account balance. The apps work the same way as the website — search for the stock, enter how many shares, and confirm. Most people use the app for checking their balance and the website for research, but either works for placing orders.

What if I want to sell a stock but the market is closed?

You can place an order after hours, but it will not execute until the market opens the next day. Some brokerages let you trade during extended hours (before 9:30 a.m. and after 4 p.m. Eastern time), but prices are less predictable and spreads are wider. For most beginners, waiting until the market opens is simpler.

How long does it take for money to settle after I sell a stock?

The money appears in your brokerage account immediately, but it takes two business days to settle — meaning you cannot transfer it back to your bank until then. You can use it to buy other stocks right away, but if you want to move it to your bank, you have to wait.

What if I lose money on a stock I bought?

You can sell it at any time and take the loss. You can use that loss to offset gains from other stocks you sold that year, which reduces the tax you owe. If your losses exceed your gains, you can deduct up to $3,000 of the loss against other income on your tax return.