You need a brokerage account, money to invest, and a few minutes to place an order

Buying a stock means purchasing a small ownership share in a company. To do it, you open an account with a brokerage firm (a company licensed to buy and sell stocks on your behalf), deposit money into that account, search for the stock you want, and place an order. The brokerage executes the trade — meaning it finds a seller and completes the transaction — and the stock appears in your account. The whole process from account opening to your first purchase typically takes a few days to a week.

You do not need a large sum to start. Most brokerages have no minimum deposit requirement, though some have minimums of $500 or $1,000. You can buy a single share of most stocks, so the actual cost depends on the stock's price per share. A stock trading at $150 per share costs $150 to buy one share; a stock at $50 costs $50.

Key Takeaways

  • You must open a brokerage account before you can buy stocks, and this account is separate from your bank account.
  • The brokerage holds your money and your stocks, and executes your buy and sell orders on the stock market.
  • You can buy stocks through a web browser, mobile app, or by phone, depending on the brokerage.
  • Stock prices change throughout the trading day, so the price you see when you search for a stock may not be the price you pay when your order completes.
  • Most brokerages charge no commission (fee) to buy or sell stocks, though some charge fees for certain types of orders or accounts.

Choose a brokerage and open an account

A brokerage is a licensed financial firm that holds your money and stocks, and places your buy and sell orders on the stock market. Common brokerages include Fidelity, Charles Schwab, E*TRADE, TD Ameritrade, Robinhood, and Webull. Each offers a web platform and a mobile app, and most have no account minimums or commission fees.

To open an account, visit the brokerage's website, click the button to open a new account (usually labeled "Open an Account" or "get your free guide"), and fill out a form with your name, address, Social Security number, employment information, and bank details. The brokerage will verify your identity and may ask questions about your investment experience. This process usually takes 10 to 15 minutes, though approval can take one to three business days.

Once your account is approved, you can link a bank account and transfer money into your brokerage account. This transfer typically takes one to three business days. Some brokerages offer when ready deposits if you connect a debit card, though the money may be held for a few days before you can use it to buy stocks.

Deposit money into your brokerage account

Your brokerage account is separate from your bank account. Money in your brokerage account sits in a cash holding area (sometimes called a "money market fund" or "settlement fund") until you use it to buy stocks. To add money, log into your account, find the "Deposit" or "Transfer Funds" option, and choose your bank. The brokerage will ask you to verify your bank account by confirming two small deposits (usually under $1 each) that your bank sends to the brokerage account. Once verified, you can transfer money whenever you want.

You can deposit as much or as little as you choose. There is no upper limit on how much you can hold in a brokerage account, though some brokerages may flag very large deposits for compliance reasons. Once money is in your account, it is ready to use for buying stocks.

Search for a stock and review its details

Log into your brokerage account and look for a search bar or "Quote" section. Type the company name or its stock ticker symbol — a one- to five-letter code that identifies the stock. Apple's ticker is AAPL, Microsoft is MSFT, Tesla is TSLA. You can find a company's ticker by searching "[Company Name] stock ticker" online, or by typing the company name into the brokerage's search box and letting it suggest the ticker.

When you search for a stock, the brokerage shows you the current price, the price change for the day, and a chart of how the price has moved over time. This information is real-time or delayed by 15 to 20 minutes, depending on the brokerage. You will also see a "Quote" or "Details" page with information about the company, its market value, and its dividend (if it pays one). Review this information to confirm you are looking at the right company.

Place a buy order

Once you have found the stock you want, click the "Buy" button. The brokerage will ask you how many shares you want to purchase. Enter the number of shares — you can buy 1 share, 10 shares, 100 shares, or any whole number. The brokerage will show you the total cost based on the current stock price, though this is an estimate because the price may change before your order completes.

Next, you will choose the type of order. A market order buys the stock at the best available price right now, and usually completes within seconds during market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays). A limit order lets you set a maximum price you are willing to pay; if the stock price drops to that level or lower, the order will execute, but if it does not, the order stays open until you cancel it or it expires. For a first purchase, a market order is simpler and more straightforward.

Review the order summary — it will show the number of shares, the estimated cost, and any fees — then click "Confirm" or "Place Order". Your order is now submitted to the stock market.

Understand what happens after you place an order

During market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays), a market order usually completes within seconds. The brokerage finds a seller willing to sell at the current market price, the trade executes, and the stock appears in your account. You will see a confirmation message with the exact price you paid per share, the total cost, and the number of shares purchased.

If you place an order after market hours or on a weekend, the order will wait until the market opens the next trading day. Once the market opens, the order executes at the best available price at that moment — which may be different from the price you saw when you placed the order.

The money for the purchase is deducted from your brokerage account's cash balance. The stock is now yours and appears in your account under a section labeled "Holdings" or "Positions". You can view your stocks anytime by logging into your account.

Track your stocks and understand price changes

After you buy a stock, its price will change throughout each trading day. Your brokerage account shows the current market price of each stock you own, the price you paid when you bought it, and your gain or loss — the difference between what you paid and what it is worth now. If you bought Apple at $150 and it is now worth $160, your gain is $10 per share. If it dropped to $140, your loss is $10 per share.

These gains and losses are "unrealized" until you sell the stock, meaning they are on paper only. The actual money does not move until you place a sell order. You can hold a stock for as long as you want — days, months, years — or sell it anytime the market is open by clicking "Sell" in your account and entering the number of shares you want to sell.

Common fees and costs to know about

Most major brokerages charge no commission (trading fee) to buy or sell stocks. However, some brokerages charge fees in specific situations: if you place a limit order that does not execute within a certain time, if you trade during extended hours (before 9:30 a.m. or after 4 p.m.), or if you use certain research tools or premium account features. Check your brokerage's fee schedule before you open an account.

You may also encounter bid-ask spread — the difference between the price a buyer will pay and the price a seller will accept. This spread is not a fee charged by the brokerage; it is built into the market price. For most stocks, the spread is very small (a few cents), but it means the price you pay may be slightly higher than the price you see quoted.

If you buy stocks inside a retirement account like an IRA or 401(k), there are no capital gains taxes when you sell at a profit (though you will owe taxes when you withdraw money in retirement). If you buy stocks in a regular taxable brokerage account, you will owe capital gains tax on any profit when you sell.

Frequently Asked Questions

Can I buy stocks with less than $100?

Yes. Most brokerages have no minimum deposit, and you can buy a single share of any stock. If a stock costs $50 per share, you can buy one share for $50. Some stocks cost more per share, but you can always buy just one share regardless of price.

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

A market order buys the stock when ready at the current market price, which usually executes within seconds during market hours. A limit order lets you set a maximum price; it only executes if the stock drops to that price or lower. Market orders are faster and more certain to execute; limit orders give you price control but may never execute if the price does not reach your limit.

Do I have to buy stocks through a brokerage, or can I buy directly from the company?

Most people buy through a brokerage because it is faster and easier. Some large companies offer direct stock purchase plans (DSPPs) that let you buy shares directly, but these programs often have higher minimums, longer settlement times, and fewer features than a brokerage account. A brokerage is the standard route for most investors.

What happens if the stock price drops after I buy it?

The loss is unrealized, meaning it exists on paper only. You can hold the stock and wait for the price to recover, or sell it and lock in the loss. You are not required to do anything. If you sell at a loss in a taxable account, you may be able to deduct the loss on your taxes.

Can I buy stocks on weekends or after market hours?

You can place an order anytime, but it will not execute until the stock market is open (9:30 a.m. to 4 p.m. Eastern time on weekdays). Some brokerages offer extended-hours trading before 9:30 a.m. or after 4 p.m., but prices are less stable and spreads are wider during these times. For a first purchase, it is simpler to place your order during regular market hours.