The basic steps to buy a stock in Fidelity

To buy a stock in the Fidelity app, open the app and tap the search icon at the bottom. Type the stock ticker symbol or company name, then tap the result. On the stock detail page, tap "Trade" and select "Buy". Enter the number of shares you want, choose whether to place a market order (executes at current price) or a limit order (executes only at a price you set), then review and confirm.

The entire process takes about two minutes once you know the ticker symbol. Your order goes to the market during trading hours (9:30 a.m. to 4 p.m. Eastern time on weekdays) and executes based on the order type you chose. If you place an order outside trading hours, it will wait until the market opens.

You must have a funded brokerage account with Fidelity before you can buy stocks. If you have not yet opened an account or added money to it, you will need to do that first through the app or Fidelity's website.

Key Takeaways

  • Search for the stock by ticker symbol or company name, tap the result, then tap "Trade" and "Buy" to place your order.
  • Market orders execute when ready at the current price; limit orders only execute if the stock reaches the price you set.
  • Orders placed during market hours (9:30 a.m. to 4 p.m. Eastern, weekdays) execute that day; orders placed outside those hours wait until the next market open.
  • You pay Fidelity's commission per trade, which varies by account type and order size — check your account settings to see your specific rate.
  • Fractional shares are available in most Fidelity accounts, so you can buy a partial share if you do not have enough cash for a full share.

Market orders versus limit orders

A market order buys the stock at whatever price it is trading at the moment your order reaches the market. If you search for Apple and the price shows $150, a market order will execute near that price, though the exact price may be slightly higher or lower by the time it fills. Market orders almost always execute when ready during trading hours.

A limit order lets you set a maximum price you are willing to pay. If you set a limit order to buy Apple at $148, the order will only execute if the stock drops to $148 or lower. If the price never reaches your limit, the order stays open until you cancel it or until the end of the trading day (if you set it as a day order). Limit orders give you price control but no may provide the trade will happen.

For most people buying individual stocks, market orders are simpler because they execute right away. Limit orders are useful if you are watching a stock and want to buy only if it reaches a specific price.

Understanding commissions and fees

Fidelity charges a commission per stock trade. The amount depends on your account type — some accounts have no commission for stock trades, while others charge a flat fee per trade or a percentage of the trade value. Check your account settings in the app or on Fidelity's website to see what you pay.

In addition to commission, you may pay a bid-ask spread, which is the difference between the price a buyer will pay and the price a seller is asking. This spread is built into the price you see and is not a separate charge from Fidelity — it goes to the market maker, not to Fidelity. The spread is usually small for popular stocks but can be wider for less-traded stocks.

If you buy fractional shares (a portion of a share rather than a whole share), the commission structure may differ. Some Fidelity accounts charge no commission on fractional share purchases, while others do. Review your account details to confirm.

Placing a limit order step by step

If you want more control over the price you pay, use a limit order. After you tap "Trade" and "Buy" on the stock detail page, you will see options for order type. Select "Limit" instead of "Market". Enter the maximum price you want to pay per share.

Next, choose the order duration. A "Day" order expires at the end of the trading day if it has not filled. A "Good-Til-Canceled" (GTC) order stays open until you cancel it or until it fills, though Fidelity may have a limit on how long GTC orders remain active (typically 60 days). Select your duration, enter the number of shares, and review the order details.

Tap "Preview Order" to see a summary, then "Confirm" to submit. Your limit order will sit in the market waiting for the stock to reach your price. You can cancel it at any time by going to "Orders" in the app and selecting the pending order.

What happens after you place an order

Once you confirm a buy order, Fidelity sends it to the market. For market orders during trading hours, execution usually happens within seconds. You will see the order status change from "Pending" to "Filled" in the app, and the shares will appear in your account.

For limit orders, the status will show "Open" until the price condition is met. If the stock reaches your limit price, the order fills automatically. If it does not, the order remains open (or expires, depending on the duration you chose). You can check the status of any order by tapping "Orders" at the bottom of the app.

After an order fills, the cash leaves your account when ready and the shares are yours. You can sell them, hold them, or set up automatic reinvestment of dividends if the stock pays them. Fidelity will send you a confirmation email with the trade details.

Fractional shares and minimum investment amounts

Fidelity allows you to buy fractional shares in most account types, which means you do not need enough cash to buy a full share. If a stock costs $200 per share and you have $100, you can buy 0.5 shares. This makes it possible to invest in expensive stocks without waiting to save up for a full share.

There is no minimum dollar amount to place a stock trade in Fidelity, though your account must have enough cash to cover the purchase plus any commission. If you try to buy more than your cash balance allows, the app will show an error and prevent the order from going through.

Fractional shares trade at the same price as whole shares and are held in your account just like whole shares. When you sell, you can sell the fractional amount or hold it. Some dividend-paying stocks may not pay dividends on fractional shares, so check the stock's dividend policy if that matters to you.

Troubleshooting common problems

If your order is rejected, the most common reason is insufficient cash in your account. Make sure your available cash balance (not your total account value) is enough to cover the purchase and any commission. You can add cash to your account through the app by linking a bank account or transferring from another account.

If you see an error message during market hours, the stock ticker may be incorrect or the market may be experiencing technical issues. Double-check the ticker symbol — for example, Apple is AAPL, not APPL. If the ticker is correct and the error persists, try closing the app and reopening it.

Orders placed outside trading hours (before 9:30 a.m. or after 4 p.m. Eastern, or on weekends and holidays) will not execute until the market opens. If you place a market order at 6 p.m. on a Friday, it will wait until 9:30 a.m. Monday morning. Limit orders placed outside hours will also wait, but they may fill during the next trading session if the price condition is met.

Frequently Asked Questions

Can I buy stocks in a Fidelity IRA or 401(k)?

Yes, you can buy individual stocks in most Fidelity retirement accounts, including IRAs and 401(k)s. The process is the same as buying in a regular brokerage account — search, tap Trade, and Buy. The main difference is that withdrawals from these accounts before age 59½ may trigger taxes and penalties, so buying stocks in a retirement account is a longer-term decision.

What is the difference between a market order and a limit order?

A market order buys the stock at the current market price and executes almost when ready. A limit order sets a maximum price you will pay and only executes if the stock reaches that price or lower. Market orders are faster; limit orders give you price control but may not fill if the price never reaches your limit.

How long does it take for a stock purchase to settle?

Stock trades in the United States settle in two business days, meaning the cash leaves your account when ready but the shares are officially yours after two days. During this settlement period, you can still sell the shares, but the cash from that sale will not be available until the original trade settles. Fidelity shows settled and unsettled balances separately in your account.

Can I cancel a stock order after I place it?

You can cancel a pending order at any time before it fills. Open the Orders section in the app, find the order you want to cancel, and tap the cancel button. If the order has already filled, you cannot cancel it, but you can sell the shares when ready if you change your mind.

Do I pay taxes when I buy a stock?

No, you do not pay taxes when you buy a stock. You pay taxes when you sell it and realize a gain or loss. If you hold the stock for more than one year before selling, the gain is taxed at the long-term capital gains rate, which is usually lower than the short-term rate for stocks held one year or less.