The basic steps to buy stock on Fidelity
To buy stock on Fidelity, you log into your account, search for the stock by ticker symbol, enter the number of shares you want, and confirm the order. The whole process takes about five minutes once your account is funded. Fidelity executes most stock orders during market hours (9:30 a.m. to 4 p.m. Eastern Time, Monday through Friday) almost when ready, though the settlement — when the shares officially move to your name — takes two business days.
Before you can buy anything, you need a Fidelity brokerage account with money in it. You can open an account online in about 10 minutes, but funding it takes one to three business days depending on how you send the money. If you already have an account and cash sitting in it, you can start buying stock right now.
Key Takeaways
- You need a funded Fidelity brokerage account; opening one takes 10 minutes but funding takes one to three business days.
- Search for the stock by its ticker symbol (like AAPL for Apple), not the company name, to find the right security quickly.
- Fidelity executes stock orders during market hours almost when ready, but settlement takes two business days.
- You can place a market order (buy at the current price right now) or a limit order (buy only if the price drops to a certain level).
- Fidelity charges no commission on stock trades, but you pay the bid-ask spread — the difference between what buyers and sellers are willing to pay.
Opening and funding a Fidelity brokerage account
Go to fidelity.com and click "Open an account." You will choose between a standard brokerage account, an IRA (for retirement), or other account types. For buying individual stocks, a standard brokerage account is the right choice. You will enter your name, Social Security number, address, employment information, and bank details. Fidelity verifies your identity when ready in most cases.
Once your account is open, you need to fund it. You can link a bank account and transfer money electronically (one to three business days), wire money from your bank (same day or next day, but your bank may charge a fee), or mail a check. Start with an electronic transfer if you are not in a hurry. Fidelity will show you the exact steps for each method in your account dashboard.
Finding and selecting the stock you want to buy
Log into your Fidelity account and look for the "Trade" or "Invest" tab at the top of the page. Click it and select "Stocks." You will see a search box. Type the ticker symbol — the one to four letter code that represents the stock. Apple is AAPL, Microsoft is MSFT, Tesla is TSLA. If you do not know the ticker, you can search by company name, but ticker symbols are faster and more reliable because some companies have similar names.
Once you find the stock, Fidelity shows you the current price, the day's high and low, trading volume, and other data. Click the stock name or ticker to open the order screen. This is where you decide how many shares to buy and what type of order to place.
Choosing between a market order and a limit order
A market order buys the stock at whatever price it is trading at right now. If you place a market order for Apple at 10:15 a.m. and Apple is trading at $150, you will buy at $150 (or very close to it). Market orders execute almost when ready during market hours. This is the simplest choice for most people buying stocks for the first time.
A limit order lets you set a maximum price you are willing to pay. If you want to buy Apple but only if it drops to $145, you set a limit order at $145. The order stays open until the stock hits that price or until you cancel it. Limit orders can take hours or days to fill, or they may never fill at all if the stock never reaches your price. Use a limit order when you want to wait for a better price or when you are buying a stock that does not trade very often.
For your first stock purchase, a market order is usually the right choice. It is straightforward and you know exactly when your order will complete.
Entering the order and reviewing before you buy
On the order screen, enter the number of shares you want to buy. If the stock costs $150 and you have $1,500 in your account, you can buy 10 shares (before accounting for the bid-ask spread). Fidelity shows you the estimated total cost. Double-check that the number of shares is correct — it is straightforward to accidentally type 100 instead of 10.
Select "Market order" or "Limit order" depending on what you decided above. If you chose a limit order, enter your maximum price. Then review the entire order one more time: the stock ticker, the number of shares, the order type, and the estimated cost. Fidelity will not let you buy more shares than your cash balance allows.
Click "Preview Order" or "Submit Order" (the button name varies). Fidelity shows you a final summary. If everything looks right, click "Place Order" or "Confirm." Your order is now in the system.
What happens after you place the order
During market hours, a market order executes within seconds. You will see a confirmation message on screen and an email from Fidelity with the order number, the price you paid per share, and the total cost. The shares are now in your account, but they are not officially yours yet — they are in "pending settlement" status.
Settlement is the behind-the-scenes process where the stock exchange confirms the trade and moves the shares to your name. This always takes two business days. During those two days, you own the shares and can sell them, but you cannot withdraw the cash from the sale until settlement is complete. After two business days, the shares move to "settled" status and you have full access to them.
If you place an order after 4 p.m. or on a weekend, it will not execute until the market opens the next trading day. Fidelity holds your order and processes it at market open (9:30 a.m. Eastern Time).
Understanding costs and the bid-ask spread
Fidelity charges no commission on stock trades — you do not pay a flat fee to buy or sell. However, you do pay the bid-ask spread, which is the difference between what buyers are willing to pay and what sellers are willing to accept. If you buy Apple and the bid is $149.99 while the ask is $150.01, you pay $150.01 (the ask price). That $0.02 difference is the spread, and it goes to the market maker, not to Fidelity.
For large, heavily traded stocks like Apple, Microsoft, and Tesla, the spread is usually just a penny or two per share. For smaller or less popular stocks, the spread can be wider — sometimes 5 cents or more. This is one reason to use limit orders on less popular stocks: you can avoid paying a wide spread by setting a price closer to the bid.
Frequently Asked Questions
Can I buy stock before my bank transfer settles?
No. You can only buy stock with cash that is already in your Fidelity account. If you initiated a bank transfer, you have to wait for it to complete (one to three business days) before you can use that money. If you wire money, it usually arrives the same day or next day, which is faster.
What if I place an order and then change my mind?
If your order has not executed yet, you can cancel it. Log into your account, find the pending order, and click "Cancel." If the order has already executed (which happens almost when ready for market orders during market hours), you cannot cancel it. You would have to sell the shares instead, which is a separate transaction.
Do I have to buy whole shares, or can I buy fractional shares?
Fidelity lets you buy fractional shares, meaning you can buy 0.5 shares or 2.3 shares if you want. This is useful if you have a small amount of money and want to buy an expensive stock. You can place a fractional order by entering a dollar amount instead of a share count on the order screen.
What is the difference between a stock and an ETF on Fidelity?
A stock is a single company (like Apple). An ETF is a fund that holds many stocks or bonds. Both trade the same way on Fidelity — you search by ticker, enter a quantity, and place an order. ETFs are often less risky because you own a piece of many companies instead of betting on one.
Can I set up automatic stock purchases on Fidelity?
Yes. Fidelity offers a feature called "Automatic Investment Plan" where you can set up recurring purchases of a stock or ETF on a schedule you choose (weekly, monthly, etc.). You set it up once in your account settings, and Fidelity buys the shares automatically on your chosen date.