The basic steps to buy stock at Fidelity
To buy stock through Fidelity, you log into your account, search for the stock by ticker symbol or company name, enter the number of shares you want, choose whether to place a market order or limit order, and confirm the trade. The whole process takes a few minutes once your account is funded. Your order goes to the market when ready if you use a market order, or waits to execute at your specified price if you use a limit order.
Before you can buy anything, you need a Fidelity brokerage account with cash in it. You can fund the account by linking a bank account and transferring money, or by depositing a check through the Fidelity mobile app. Most transfers take one to three business days to settle, though some transfers are available when ready depending on your bank.
Fidelity does not charge a commission when you buy or sell stocks, mutual funds, or exchange-traded funds (ETFs). You pay only the bid-ask spread — the difference between what buyers are willing to pay and what sellers are asking — which is built into the price you see when you place the order.
Key Takeaways
- You need a funded Fidelity brokerage account before you can buy stock; transfers from your bank usually take one to three business days.
- Market orders execute when ready at the current price, while limit orders wait to fill only if the stock reaches your specified price.
- Fidelity charges no commission on stock trades, but you pay the bid-ask spread that is built into every price.
- You can buy fractional shares of most stocks through Fidelity, meaning you do not need enough cash for a full share.
Market orders versus limit orders
A market order buys or sells when ready at whatever price the market is currently offering. If you place a market order to buy 10 shares of Apple, your order fills right away at the ask price — the price sellers are currently asking. Market orders may provide that your trade will execute, but the exact price you pay is not locked in until the order completes. During fast-moving markets, the price can shift between the moment you click and the moment the order settles.
A limit order sets a maximum price you are willing to pay (for a buy) or a minimum price you are willing to accept (for a sell). If you place a limit order to buy 10 shares of Apple at $150, the order sits in the market and only fills if the stock drops to $150 or lower. Limit orders give you price control but do not may provide your order will fill — if the stock never reaches your price, you own nothing.
Most people use market orders when they want to buy stock right away. Limit orders are useful if you are willing to wait for a better price or if you want to avoid overpaying during a sudden price spike.
Buying fractional shares
Fidelity lets you buy fractional shares of most stocks, meaning you can own 0.5 shares or 2.3 shares instead of having to buy whole shares only. This matters if a stock costs $500 per share and you have $250 to invest — you can buy 0.5 shares instead of waiting until you have $500.
Fractional shares work the same way as whole shares: they earn dividends (paid proportionally), they can be sold at any time, and they count toward your portfolio value. The main limitation is that some advanced order types — like stop-loss orders — may not work with fractional shares, and some stocks that trade on certain exchanges may not be available as fractional shares.
Understanding the order types available
Beyond market and limit orders, Fidelity offers several other order types for different situations. A stop order (or stop-loss order) automatically converts to a market order once the stock price falls to a level you set, protecting you from larger losses. A stop-limit order combines both: it converts to a limit order once the stop price is hit, giving you price control but no may provide the order will fill.
A trailing stop sets a stop price that moves automatically as the stock price rises, locking in gains while still letting the position run. An all-or-none order fills only if Fidelity can execute your entire order at once; it will not partially fill. Most beginning investors use market orders or straightforward limit orders and do not need these advanced types.
What happens after you place an order
Once you place an order, Fidelity sends it to the market and you see it listed in your account under "Orders" or "Recent Activity." If it is a market order, it typically fills within seconds during regular market hours (9:30 a.m. to 4:00 p.m. Eastern Time, Monday through Friday). If it is a limit order, it stays open until it fills, expires, or you cancel it.
After your order fills, the shares appear in your account and you own them when ready. You can sell them at any time during market hours. If you buy during after-hours trading (4:00 p.m. to 8:00 p.m. Eastern), your order may take longer to fill or may not fill at all, because fewer traders are active and prices can be less stable.
You can see the status of every order in your account history. Fidelity also sends you a confirmation email with the details: the stock symbol, number of shares, price paid, and total cost including any fees.
Setting up automatic investments
If you want to buy stock regularly without placing an order each time, Fidelity lets you set up automatic investments through a feature called Automatic Investment Plan (AIP). You choose a stock or ETF, decide how much money to invest and how often (weekly, biweekly, or monthly), and Fidelity invests that amount automatically on your chosen date.
Automatic investments are useful for dollar-cost averaging — investing the same amount regularly regardless of price — because you buy more shares when prices are low and fewer when prices are high. This can reduce the impact of market timing mistakes. You can pause or cancel an automatic investment at any time.
Taxes and record-keeping
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: if you held it for more than one year, it is taxed as a long-term capital gain (usually at a lower rate). If you held it for one year or less, it is taxed as a short-term capital gain (at your ordinary income tax rate).
Fidelity tracks your cost basis — the original price you paid — and generates tax documents at the end of the year. You receive a Form 1099-B listing all your sales, and you can read detailed transaction reports from your account. Keep these records for at least three years in case the IRS asks questions.
Frequently Asked Questions
Can I buy stock with unsettled cash?
No. Cash must be settled (fully transferred from your bank) before you can use it to buy stock. Most transfers settle in one to three business days. Fidelity offers some when ready transfers from certain banks, but these are limited and depend on your bank's partnership with Fidelity.
What is the minimum amount I need to buy stock at Fidelity?
There is no minimum dollar amount to open an account or place a trade. Because Fidelity offers fractional shares, you can buy stock with any amount of cash you have — even $1. However, some stocks may have a minimum fractional share size depending on their price.
Can I buy stock outside of market hours?
Yes, Fidelity offers after-hours trading from 4:00 p.m. to 8:00 p.m. Eastern Time. After-hours orders may take longer to fill or may not fill at all because fewer traders are active and prices are less stable. Most investors place orders during regular market hours for faster, more predictable execution.
What if I want to buy a stock but do not know the ticker symbol?
Use Fidelity's search function in the trading section. Type the company name and Fidelity shows you matching results with their ticker symbols. You can also search by industry or sector if you want to browse stocks in a particular area.
Do I pay taxes on stock I own but have not sold?
No. You owe taxes only when you sell the stock and realize a gain or loss. You do owe taxes on dividends the stock pays, even if you reinvest them. Fidelity reports dividend income on your tax documents at the end of the year.