The basic steps to buy a stock on Fidelity

To buy a stock on 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, review the details, and submit. The whole process takes about two minutes once you have money in your account.

You will need a funded brokerage account — either a standard taxable account or a retirement account like an IRA. If you have not yet opened one, you can do that through Fidelity's website before you buy anything. Once your account is open and you have transferred money into it, you are ready to place your first trade.

Fidelity executes most stock orders during market hours (9:30 a.m. to 4 p.m. Eastern time, Monday through Friday) at the price the stock is trading at when your order reaches the market. If you place an order outside market hours, it will wait until the market opens the next trading day.

Key Takeaways

  • You need a funded Fidelity brokerage account before you can buy stocks; opening an account takes about 10 minutes but funding it may take one to three business days.
  • Search for stocks by their ticker symbol (like AAPL for Apple) in the trade ticket, not by company name, to avoid confusion.
  • A market order buys at the current price when ready during market hours; a limit order waits until the stock reaches the price you set.
  • Fidelity charges no commission on stock trades, but you may pay fees if you trade certain stocks or use margin.
  • Your order confirmation appears in your account history within seconds, and the shares settle in your account two business days later.

Opening and funding your Fidelity account

If you do not yet have a Fidelity brokerage account, you can open one on their website in about 10 minutes. You will need your Social Security number, a government-issued ID, your address, and your employment information. Fidelity will verify your identity electronically and you can usually start using the account the same day.

Before you can buy stocks, you need to move money into your account. You can do this by linking a bank account and transferring funds, depositing a check through mobile deposit, or wiring money. Bank transfers typically take one to three business days to appear in your Fidelity account. Once the money is there, it is ready to use for buying stocks.

Finding and searching for a stock

Log into your Fidelity account and click on the "Trade" tab or "Brokerage" section. You will see a search box labeled "Symbol" or "Enter Symbol." This is where you type the stock's ticker symbol — the short code that represents the company. For example, AAPL is Apple, MSFT is Microsoft, and TSLA is Tesla.

If you do not know the ticker symbol, you can search by company name in the same box and Fidelity will show you a list of matching results. Click on the stock you want and Fidelity will open the trade ticket for that stock. The trade ticket shows the current price, the day's high and low, and other details about the stock.

Placing a market order versus a limit order

A market order buys the stock at whatever price it is trading at right now. When you submit a market order during market hours, it executes almost when ready at the current market price. This is the simplest way to buy and is what most beginners use. The downside is that the price you pay might be slightly different from the price you saw on screen, especially for stocks that move quickly.

A limit order lets you set the maximum price you are willing to pay. If the stock is trading at $50 and you place a limit order for $48, your order will only execute if the stock drops to $48 or lower. If the stock never reaches that price, your order stays open until you cancel it or it expires. Limit orders are useful if you want to buy a stock but only at a specific price.

For your first stock purchase, a market order is usually the right choice. It guarantees your order will go through during market hours, and you avoid the risk of your order never executing because the price never hit your limit.

Entering the number of shares and reviewing your order

In the trade ticket, enter the number of shares you want to buy in the "Quantity" or "Shares" field. Fidelity will automatically show you the estimated total cost based on the current stock price. This is an estimate only — the actual cost may be slightly different if the price moves between the time you see it and the time your order executes.

Review the order details: the stock symbol, the number of shares, the order type (market or limit), and the estimated cost. Make sure the account you are trading from is correct — you may have multiple accounts and Fidelity will show you which one the trade will come from. Once everything looks right, click "Submit" or "Place Order."

What happens after you submit your order

Your order confirmation appears on screen when ready and is also sent to your email. The confirmation shows the order number, the stock, the number of shares, and the price you paid (for market orders) or the limit price you set (for limit orders). You can view this confirmation anytime in your account history.

The shares do not appear in your account balance right away. Stock trades settle two business days after you buy them, which means the shares officially become yours and the money officially leaves your account. Until then, the trade shows as "pending" in your account. You can sell the shares before they settle, but you cannot withdraw the cash from the sale until settlement is complete.

Once the shares settle, they appear in your holdings and you own them. You can hold them as long as you want, sell them at any time during market hours, or set up automatic dividend reinvestment if the company pays dividends.

Costs and fees for buying stocks on Fidelity

Fidelity charges no commission on stock trades, which means you do not pay a fee just for buying or selling a stock. This applies to stocks listed on U.S. exchanges and most stocks listed on foreign exchanges.

There are a few situations where you might pay a fee. If you trade certain penny stocks or over-the-counter stocks, Fidelity may charge a small fee per share. If you use margin (borrowed money) to buy stocks, you will pay interest on the borrowed amount. If you trade options or use certain advanced order types, different fees may explore. For a straightforward stock purchase with your own cash, there is no fee.

Frequently Asked Questions

Can I buy stocks outside of market hours?

You can place an order outside market hours, but it will not execute until the market opens. If you place an order at 6 p.m., it will wait until 9:30 a.m. the next trading day. Market hours are 9:30 a.m. to 4 p.m. Eastern time, Monday through Friday, excluding holidays.

What is the minimum amount of money I need to start buying stocks?

There is no minimum to open a Fidelity brokerage account. However, stock prices vary widely — some stocks cost $5 per share, others cost $500 or more. You need enough money in your account to buy at least one share of the stock you want. Some brokers offer fractional shares, which let you buy a portion of a stock for less than the full share price.

How long does it take to see my shares in my account?

Your order confirmation appears within seconds. The shares settle two business days later, at which point they officially appear in your holdings. Until then, the trade shows as pending. You can view your pending trades in your account activity at any time.

Can I cancel a stock order after I place it?

Yes, but only if the order has not executed yet. If you placed a market order during market hours, it likely executed within seconds, so cancellation is not possible. If you placed a limit order that has not filled, you can cancel it anytime before it executes. Log into your account, find the pending order, and click cancel.

What is the difference between a brokerage account and a retirement account on Fidelity?

A standard brokerage account has no contribution limits and no withdrawal restrictions — you can buy and sell stocks anytime and withdraw your money anytime. A retirement account like an IRA has annual contribution limits and withdrawal restrictions until you reach age 59½. Both can hold stocks, but retirement accounts are designed for long-term saving with tax advantages.