The basic steps to purchase a stock on E*TRADE

To buy a stock on E*TRADE, you log into your account, search for the company by ticker symbol or name, enter how many shares you want, choose your order type, and submit. The whole process takes about two minutes once your account is funded. E*TRADE will show you the current price, let you review the order before it goes through, and then execute the trade during market hours (9:30 a.m. to 4 p.m. Eastern Time on weekdays).

Your money needs to be in your E*TRADE brokerage account before you place an order. If you just opened the account, you'll have to transfer funds from your bank first — this typically takes one to three business days. Once the cash is there, you're ready to buy.

Key Takeaways

  • You must have cash in your E*TRADE brokerage account before you can purchase stock; transfers from your bank take one to three business days.
  • Search for a stock using its ticker symbol (like AAPL for Apple) or company name in the E*TRADE platform.
  • E*TRADE shows you the current bid and ask price before you submit your order, so you know exactly what you're paying.
  • Market orders execute during trading hours at the current price, while limit orders let you set a maximum price you're willing to pay.
  • Your order confirmation appears in your account history when ready, though the settlement (when the shares officially become yours) takes two business days.

Finding and searching for a stock

Open E*TRADE and log in with your username and password. From the main dashboard, look for the "Trade" or "Stocks" section — the exact wording depends on which E*TRADE platform you're using (the website or the mobile app have slightly different layouts). Click on "Buy" or "Trade Stocks."

Type the company name or its ticker symbol into the search box. A ticker symbol is a one- to four-letter code that represents a stock — Apple is AAPL, Microsoft is MSFT, Tesla is TSLA. If you don't know the ticker, typing the company name works too. E*TRADE will show you a list of matching results. Click on the stock you want.

Entering your order details

Once you've selected a stock, E*TRADE displays the current price and a form where you enter how many shares you want to buy. Type the number of shares in the quantity field. Below that, you'll see two main order type options: Market and Limit.

A market order buys the stock at whatever the current price is right now. This executes almost when ready during market hours. A limit order lets you set a maximum price — E*TRADE will only buy if the stock drops to that price or lower. Limit orders can take hours or days to fill, or may not fill at all if the price never reaches your limit.

For your first purchase, a market order is simpler. Choose "Market," leave the time frame as "Day" (which means the order expires at the end of today if it doesn't fill), and move to review.

Reviewing and confirming your order

Before E*TRADE executes your trade, it shows you a summary screen. This displays the stock name and ticker, the number of shares, the order type, and the estimated total cost (number of shares times the current price). Check that everything is correct — especially the number of shares, since that's the easiest thing to mistype.

E*TRADE also shows you the bid price (what buyers are offering) and the ask price (what sellers are asking). Your market order will execute at or near the ask price. Once you've reviewed everything, click "Submit Order" or "Place Order." Your trade is now live.

What happens after you submit

E*TRADE sends you a confirmation number and displays the order in your account history when ready. The confirmation shows the exact price your shares were bought at, the number of shares, and the total amount charged to your account. This confirmation is your receipt.

The shares themselves appear in your account within two business days — this is called settlement. Until settlement is complete, the shares are technically in transit, but E*TRADE shows them in your holdings right away so you can see what you own. You can sell the shares after settlement is complete, but not before.

Understanding order types and timing

E*TRADE offers several order types beyond Market and Limit. A stop order (also called a stop-loss) automatically sells your stock if the price drops to a certain level — this protects you from bigger losses. A stop-limit order combines both: it triggers a sale at your stop price, but only if it can execute at your limit price or better.

All orders execute only during market hours: 9:30 a.m. to 4 p.m. Eastern Time, Monday through Friday. If you place an order after 4 p.m. or on a weekend, it queues up and executes the next time the market opens. You can also place orders for the next trading day by selecting "Good for Day" or "Good Till Canceled" (GTC), which keeps the order active until it fills or you cancel it.

Checking your purchase and next steps

After your order settles (two business days), the shares show in your "Positions" or "Holdings" section with the number of shares you own and their current market value. E*TRADE updates this value throughout each trading day as the stock price moves.

You can now hold the shares, sell them, or buy more. If you want to sell, the process is nearly identical to buying — search for the stock, enter the number of shares you want to sell, choose your order type, and submit. Your cash returns to your account two business days after the sale settles.

Frequently Asked Questions

Do I have to use a market order, or can I always use a limit order?

You can use either. Limit orders give you more control over price but may not fill if the stock never reaches your target. Market orders fill when ready but at whatever price the market is offering at that moment. Most beginners start with market orders because they're simpler and more predictable.

What if I don't have enough cash in my account to buy the shares I want?

E*TRADE will reject the order and show you an error message saying you have insufficient funds. You'll need to transfer more money from your bank account first. The transfer takes one to three business days, so plan ahead if you know you want to buy.

Can I cancel an order after I submit it?

Yes, but only if it hasn't executed yet. Market orders usually execute within seconds during market hours, so you have a very small window. Limit orders that haven't filled can be canceled anytime. Log into your account, find the order in your history, and click "Cancel." If the order already executed, you can't cancel it — you'd have to sell the shares instead.

Why does my order show a different price than what I saw when I searched?

Stock prices change constantly during market hours. The price you see when you search may be a few seconds old by the time you submit your order. Your actual execution price depends on what the market is offering at the exact moment your order reaches the exchange. This is why limit orders exist — they protect you by setting a maximum price you're willing to pay.

When can I sell the shares I just bought?

Technically, you can place a sell order when ready after your purchase order executes. However, the shares won't actually settle into your account for two business days. Most brokers, including E*TRADE, let you sell before settlement (called selling on margin or using unsettled funds), but this can trigger additional rules. For your first trades, wait until settlement is complete before selling.