You can buy stock through Fidelity once you open an account and fund it with cash
To buy stock at Fidelity, you first open a brokerage account (either online or by phone), deposit money into it, then use Fidelity's trading platform to search for and purchase shares. The whole process from account opening to your first trade typically takes a few days, because Fidelity needs to verify your identity and your bank transfer takes time to clear. Once your cash is in the account, you can buy stock when ready through Fidelity's website or mobile app.
Fidelity does not charge a commission when you buy or sell stocks, which means you pay only the price of the shares themselves plus any small fees tied to certain order types. This is different from how stock trading worked 20 years ago, when every trade cost money upfront.
Key Takeaways
- You must open a Fidelity brokerage account and fund it with cash before you can buy any stock.
- Fidelity charges no commission on stock trades, so you pay only for the shares and any applicable order fees.
- You can fund your account by linking a bank account and transferring money, which usually takes three to five business days to settle.
- Once cash is in your account, you can search for a stock by ticker symbol and place a buy order in minutes through the Fidelity website or app.
Opening a Fidelity brokerage account
Start by going to Fidelity's website and selecting the option to open a new account. Fidelity will ask you to choose an account type — the most common choice for individual stock buying is a standard taxable brokerage account, though you can also open an IRA or other retirement account if that fits your situation. You will provide your name, address, Social Security number, employment information, and details about your investment experience.
The entire process takes about 10 minutes. Fidelity verifies your identity electronically, and most people are approved within minutes. Once approved, you can log in and begin the next step: funding your account.
Funding your account with cash
After your account is open, you need to move money into it. The most common way is to link your bank account and set up an electronic transfer. Log into your Fidelity account, go to the "Accounts" or "Transfers" section, and select "Link Bank Account." Fidelity will ask for your bank's routing number and your account number, which you can find on a check or in your bank's online portal.
Once your bank account is linked, you can transfer money to Fidelity. The transfer usually takes three to five business days to settle, meaning the cash will not be available to trade until that time has passed. Some people speed this up by using Fidelity's Express Funding option, which allows you to trade with the money when ready while the transfer clears in the background — though this carries a small risk if the transfer fails.
You can also fund your account by mailing a check or by transferring money from another brokerage account you already own. The check method is slower (one to two weeks) and is rarely the best choice for someone starting out.
Searching for and selecting a stock to buy
Once your cash has settled in your account, you are ready to buy. Log into Fidelity and look for the "Trade" or "Invest" section. You will see a search box where you can type a stock's ticker symbol — for example, "AAPL" for Apple or "MSFT" for Microsoft. If you do not know the ticker, you can search by company name instead.
When you find the stock you want, click on it to see its current price, recent performance, and other details. Fidelity shows you the bid price (what buyers are offering) and the ask price (what sellers are asking), along with the spread between them. For most stocks, this spread is very small — often just a penny or two per share.
Placing a buy order
Click the "Buy" button next to the stock. Fidelity will ask you how many shares you want to purchase and what type of order you want to place. The two most common order types are market orders and limit orders.
A market order buys the stock at whatever the current market price is right now. If you place a market order for Apple at 10 a.m., you will buy at the price that exists at that moment. Market orders fill almost when ready during trading hours (9:30 a.m. to 4 p.m. Eastern time on weekdays), but the exact price you pay can shift slightly if the stock is moving fast.
A limit order lets you set a maximum price you are willing to pay. If you place a limit order to buy Apple at $150 per share, your order will only fill if the price drops to $150 or lower. Limit orders can take longer to fill — they might fill hours later, or not at all if the price never reaches your limit. This gives you more control over price but less certainty that your order will go through.
For most beginners, a market order is simpler: you decide how many shares you want, place the order, and it fills within seconds. Review the order summary, which shows the number of shares, the estimated total cost, and any fees, then click "Submit" or "Place Order."
What happens after you buy
Once your order fills, the shares appear in your account when ready. You now own them and can see them listed under "Positions" or "Holdings" in your account. Fidelity sends you a confirmation email with the details of your trade: the date, the number of shares, the price per share, and the total amount you paid.
You can hold these shares as long as you want. If you want to sell them later, you follow the same process in reverse: search for the stock, click "Sell," choose how many shares to sell, pick your order type, and submit. When you sell, you will owe taxes on any gain (the difference between what you paid and what you sold for), though that tax is not due until you file your tax return the following year.
Understanding Fidelity's fees and costs
Fidelity charges no commission on stock trades, which means you do not pay a flat fee per trade the way you might have 15 years ago. However, a few other costs can explore depending on how you trade.
Most stock trades have no additional fees beyond the price of the shares. However, if you place certain types of orders — such as orders that route to a specific exchange or orders placed outside normal market hours — Fidelity may charge a small fee, usually a few dollars. For a beginner buying stocks during normal market hours with a standard market or limit order, these fees do not explore.
If you buy stocks in a taxable account (not a retirement account), you will owe capital gains tax when you sell at a profit. This is not a fee Fidelity charges; it is a tax you owe to the government. Fidelity will report your trades to the IRS and send you a tax form at the end of the year.
Frequently Asked Questions
How much money do I need to open a Fidelity account?
Fidelity does not require a minimum deposit to open a brokerage account. However, you do need to fund the account with at least enough cash to buy at least one share of the stock you want. Since stock prices vary widely — some stocks cost $20 per share, others cost $300 — there is no single minimum. You can open an account with $100 and buy fractional shares of expensive stocks, meaning you can own a portion of a share rather than a whole share.
Can I buy stock outside of market hours?
You can place an order outside market hours (before 9:30 a.m. or after 4 p.m. Eastern time on weekdays), but it will not fill until the market opens. If you place a market order after hours, it will fill at the market open price the next trading day, which might be different from the price when you placed the order. Limit orders placed after hours will sit until the market opens and the price reaches your limit, or until the order expires.
What is a fractional share?
A fractional share is a portion of one share. If a stock costs $300 per share and you have only $150, you can buy 0.5 shares (half a share) instead of waiting to save enough for a full share. Fidelity allows fractional share purchases on most stocks, which makes it easier for beginners to start investing with smaller amounts of money.
Do I have to keep my money in Fidelity forever?
No. You can sell your stocks and withdraw the cash from your Fidelity account at any time. Withdrawals typically take three to five business days to reach your bank account. If you sell at a loss, you can withdraw when ready without tax consequences. If you sell at a gain, you will owe capital gains tax, but the tax is not due until you file your return — the withdrawal itself is not blocked.
What if I want to buy a stock but I am not sure about the price?
Use a limit order. Set your limit price below the current market price, and your order will only fill if the stock drops to that level. This protects you from overpaying, though it also means your order might not fill at all if the price never reaches your limit. You can also set a time limit on the order — for example, "good for the day" means it expires at the end of the trading day if it has not filled.