The basic steps to buy a stock on Fidelity

To buy a stock through Fidelity, you log into your account, search for the company by ticker symbol or name, enter how many shares you want, choose your order type, and submit. The whole process takes about five minutes once your account is funded. Fidelity will execute the order during market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays) or hold it for the next market open if you place it after hours.

Before you can buy anything, your Fidelity account must have cash in it. You can link a bank account and transfer money, which usually takes one to three business days to settle. Once the cash shows as available in your account, you are ready to place your first trade.

The order itself happens in the Fidelity trading platform — either the website or the mobile app. Both routes show you the same information: the current price, how many shares you are buying, and the total cost before any fees. Fidelity does not charge a commission to buy or sell stocks, so what you see is what you pay.

Key Takeaways

  • You need a funded Fidelity brokerage account; transfer money from your bank first and wait one to three business days for it to settle.
  • Search for a stock by its ticker symbol (like AAPL for Apple) or company name in the Fidelity platform, then enter the number of shares and submit your order.
  • Fidelity charges no commission on stock trades, but you pay the market price at the time your order executes.
  • Orders placed during market hours (9:30 a.m. to 4 p.m. Eastern, weekdays) execute when ready; orders placed after hours wait until the next market open.

Setting up your Fidelity account for trading

A Fidelity brokerage account is different from a retirement account like an IRA. If you already have a Fidelity IRA or 401(k), you can open a separate taxable brokerage account in the same login. If you are starting fresh, you will create a new account and choose "brokerage" as the account type.

The account setup takes about 10 minutes. Fidelity asks for your Social Security number, address, employment status, and investment experience level. The last question — about whether you have traded stocks before — does not prevent you from opening the account; it just helps Fidelity understand your background. After you submit, your account is usually approved within a few hours.

Once approved, you need to fund the account. Link your bank account through the Fidelity website or app, then initiate a transfer. Fidelity accepts transfers from most U.S. banks. The money typically arrives in your Fidelity account within one to three business days, depending on your bank. Until it settles, you cannot use it to buy stocks.

Finding and selecting the stock you want to buy

Every publicly traded company has a ticker symbol — a short code like MSFT (Microsoft) or TSLA (Tesla). The easiest way to buy a stock is to search by this symbol. In the Fidelity platform, look for a search box or a "Trade" tab, type the ticker, and the stock's current price and details will appear.

If you do not know the ticker, search by company name instead. Fidelity will show you a list of matches. Click the one you want, and you will see the same trading screen. The page displays the current bid price (what buyers are offering), the ask price (what sellers are asking), and recent trading volume. For most stocks, these prices are nearly identical and update in real time during market hours.

Before you buy, check that you are looking at the right company. Some companies have similar names, and a few have multiple share classes trading under different tickers. Fidelity shows the full company name and exchange (usually NYSE or NASDAQ) to help you confirm.

Placing your first stock order

Once you have found the stock, you will see a button to "Buy" or "Trade." Click it, and Fidelity will open an order form. You enter the number of shares you want to buy. Fidelity shows you the current price per share and calculates the total cost automatically. For example, if Apple is trading at $150 per share and you enter 10 shares, the total is $1,500 before any fees (Fidelity adds none).

Next, you choose your order type. A market order buys the stock at the current market price when ready — this is the simplest choice for beginners. A limit order lets you set a maximum price you are willing to pay; if the stock drops to that price, the order executes, but if it does not, the order stays open until you cancel it or it expires. For your first trade, a market order is usually the right choice.

You also choose whether the order is good for the day (it expires at the end of the trading day if not filled) or good till canceled (it stays open until you cancel it or it fills). For a market order placed during market hours, this does not matter — it will fill almost when ready. Review the order summary, confirm the amount, and click "Submit" or "Place Order."

What happens after you submit your order

If you placed a market order during market hours, Fidelity executes it within seconds. You will see a confirmation number and the exact price you paid per share. The shares appear in your account when ready, and your cash balance drops by the amount you spent.

If you placed the order after 4 p.m. Eastern or on a weekend, Fidelity holds it and executes it at the market open the next trading day. You will see the order listed as "pending" in your account until then. Once it fills, you receive a confirmation with the execution price.

Fidelity sends you a confirmation email with all the details: the ticker, the number of shares, the price per share, the total cost, and the settlement date. Settlement is the date the trade officially completes in the system — for stocks, this is typically two business days after the trade date. Until settlement, the shares are yours to sell, but the cash is still technically in transit.

Understanding order types and timing

A market order buys at the best available price right now. During normal market hours, this price is usually very close to the last price you saw on the screen. In the first few minutes after market open or in the last hour before close, prices can move faster, so the price you pay might be slightly different from what you expected.

A limit order is useful if you want to buy only at a specific price or lower. You set the limit, and Fidelity only executes the order if the stock reaches that price. If it never does, the order expires at the end of the day (if you set it as "good for the day") or stays open until you cancel it (if you set it as "good till canceled"). Limit orders are safer for large purchases or volatile stocks, but they may never fill.

The U.S. stock market is open Monday through Friday, 9:30 a.m. to 4 p.m. Eastern time. Orders placed outside these hours are held and executed at the next market open. Some brokers offer extended-hours trading (before 9:30 a.m. or after 4 p.m.), but Fidelity's standard trading window is regular market hours.

Common mistakes to avoid on your first trade

The most common mistake is forgetting to fund your account before trying to buy. If your cash has not settled, Fidelity will reject the order. Always check your available cash balance before you place a trade.

Another mistake is confusing the bid and ask price. The bid is what you receive if you sell right now; the ask is what you pay if you buy right now. When you place a market order to buy, you pay the ask price (or slightly higher if the market is moving fast). This is normal and expected.

A third mistake is placing a limit order and forgetting about it. If you set a limit order for $100 per share and the stock never drops to $100, the order sits open until you cancel it or it expires. Check your open orders regularly so you know what is pending.

Finally, do not assume the price you see on the screen is the price you will pay. Stock prices move constantly during market hours. If you place a market order, you will pay the market price at the moment Fidelity executes it, which may be a few cents or dollars different from what you saw when you clicked "Buy."

Frequently Asked Questions

Do I need a minimum amount of money to open a Fidelity brokerage account?

Fidelity does not require a minimum deposit to open a brokerage account. However, you do need enough cash in the account to cover the cost of the stock you want to buy. If you want to buy one share of a $300 stock, you need at least $300 in your account.

Can I buy fractional shares through Fidelity?

Yes. Fidelity allows you to buy fractional shares, meaning you can own 0.5 shares or 2.3 shares of a stock instead of only whole numbers. This is useful if you have a small amount of money and want to buy an expensive stock. You enter the dollar amount you want to spend, and Fidelity calculates the fractional shares automatically.

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

A market order buys at the current market price when ready. A limit order sets a maximum price you are willing to pay and only executes if the stock reaches that price or lower. Market orders are faster and almost always fill; limit orders give you price control but may never execute.

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

Stock trades settle in two business days. This means the shares are yours to sell when ready, but the cash transfer between your bank and Fidelity completes two days after the trade date. You can trade the shares before settlement is complete.

Can I cancel a stock order after I place it?

If your order has not yet executed, you can cancel it. Market orders placed during market hours execute almost when ready, so you usually cannot cancel them. Limit orders and orders placed after hours can be canceled before they fill. Log into your Fidelity account, find the pending order, and click "Cancel."