You need a brokerage account, money to invest, and a few minutes to place an order
Buying stocks online means opening an account with a brokerage firm — a company licensed to buy and sell stocks on your behalf. You fund that account with money, search for the stock you want by its ticker symbol (like AAPL for Apple), decide how many shares to buy, and place an order. The brokerage executes the trade, holds your shares, and sends you a confirmation. The whole process takes minutes once your account is open and funded.
The hard part is not the mechanics — it is choosing which brokerage to use and understanding what you are buying. This guide walks you through the actual steps, what each brokerage charges, and what happens after you hit "buy".
Key Takeaways
- You must open and fund a brokerage account before you can buy any stock; most brokerages let you start with $1 to $100 depending on the firm.
- Stock orders execute in seconds during market hours (9:30 a.m. to 4 p.m. Eastern, Monday through Friday), but orders placed outside those hours wait until the market opens.
- Most major brokerages charge zero commission per trade, but some charge per-share fees or require account minimums for certain account types.
- Your shares are held in your brokerage account and remain there until you sell them; the brokerage does not own them, but it holds them on your behalf.
Opening a brokerage account online
Start by choosing a brokerage. Common ones include Fidelity, Charles Schwab, E*TRADE, Robinhood, Webull, and TD Ameritrade. Each has a website and a mobile app. Visit the brokerage's site and look for a button that says "Open an Account" or "get your free guide".
You will enter your name, address, Social Security number, employment status, and how much money you plan to invest. The brokerage runs a background check (this takes minutes to hours). Once approved, you can link a bank account to transfer money into your brokerage account. Most brokerages let you start with as little as $1, though some have minimums of $500 or $1,000 for certain account types like managed portfolios.
The whole process takes 10 to 20 minutes. You do not need to print anything or visit an office.
Funding your account and understanding account types
After approval, you link a checking or savings account from your bank. You then transfer money from that bank account into your brokerage account. This transfer usually takes one to three business days. Some brokerages offer when ready funding for small amounts ($1,000 or less) if you link your account via ACH (Automated Clearing House), but the money may be held for settlement.
Most people open a taxable brokerage account, which has no contribution limits and no withdrawal restrictions. If you are saving for retirement, you might open an IRA (Individual Retirement Account) instead, which has tax advantages but limits how much you can contribute per year and when you can withdraw without penalty. For this guide, assume you are opening a taxable account unless you specifically chose an IRA.
Once money lands in your account, it sits there as cash until you buy a stock. You can see your cash balance in your account dashboard.
Finding and ordering a stock
Log into your brokerage account. Look for a search bar or a "Trade" or "Buy" button. Type the company name or its ticker symbol — a one- to five-letter code that identifies the stock. Apple is AAPL, Microsoft is MSFT, Tesla is TSLA. If you do not know the ticker, type the company name and the brokerage will show you the matching stocks.
Click on the stock. You will see its current price, a chart of its price history, and news about the company. Now you decide how many shares to buy. If Apple is trading at $150 per share and you have $1,500 in your account, you could buy 10 shares. Enter the number of shares in the order form.
Choose your order type. A market order buys the stock at whatever price it is trading at right now — the order executes almost when ready during market hours. A limit order lets you set a maximum price you will pay; if the stock is $150 and you set a limit of $148, the order only fills if the price drops to $148 or lower. For a first purchase, a market order is simpler.
Review the order summary. It shows the number of shares, the estimated total cost, and any fees. Click "Buy" or "Place Order". The brokerage sends the order to the stock exchange, and within seconds (during market hours) your order is filled. You now own the shares.
What happens after you buy: settlement and holding your shares
When you buy a stock, the trade settles two business days later. This means the money leaves your brokerage account, the shares officially transfer to your name, and you can see them listed under "Holdings" or "Positions" in your account. Until settlement, the shares show as "pending" or "unsettled".
Your brokerage holds the shares in your account. You do not receive a paper certificate or have to store anything. The brokerage keeps a record that you own them. You can see your holdings, their current value, and how much you have gained or lost at any time by logging into your account.
If the company pays a dividend (a cash payment to shareholders), it lands in your account automatically. If you want to sell the shares later, you search for the stock in your holdings, click "Sell", enter how many shares to sell, and place a sell order the same way you placed a buy order.
Fees and costs to watch for
Most major brokerages charge zero commission per trade, meaning you pay nothing to buy or sell a stock. However, some brokerages still charge per-share fees (typically $0.01 per share) or have account minimums.
Beyond commissions, watch for these costs: margin interest (charged if you borrow money from your brokerage to buy stocks), inactivity fees (charged if you do not trade for a set period), and account transfer fees (charged if you move your account to another brokerage). Most brokerages waive these for accounts with a minimum balance or regular activity.
You will also owe taxes on any profit when you sell. If you held the stock for more than one year, the profit is taxed as a long-term capital gain (usually at a lower rate). If you held it for less than one year, it is taxed as ordinary income. Your brokerage sends you a tax form (Form 1099-B) each year listing your sales and gains.
Placing orders outside market hours
The stock market is open Monday through Friday, 9:30 a.m. to 4 p.m. Eastern Time. If you place an order outside these hours, it waits in a queue. Most brokerages offer extended-hours trading (pre-market from 4 a.m. to 9:30 a.m., and after-hours from 4 p.m. to 8 p.m.), but prices are less stable and spreads (the difference between buy and sell prices) are wider.
For a new investor, stick to regular market hours. Your order executes faster, prices are more predictable, and you can see real-time news about the stock.
Frequently Asked Questions
Can I buy stocks with $100?
Yes. Most brokerages have no account minimum, so you can open an account and buy a single share of any stock, even if it costs $200 per share — you would own a fractional share. Some brokerages require $500 or $1,000 minimums only for certain account types like robo-advisor portfolios, not for regular stock purchases.
What is the difference between a market order and a limit order?
A market order buys at the current price right now — it executes almost when ready but you do not control the exact price. A limit order sets a maximum price you will pay and only fills if the stock drops to that price or lower. Limit orders can take hours or days to fill, or may not fill at all if the price never reaches your limit.
Do I own the stock or does the brokerage?
You own the stock. The brokerage holds it in your account on your behalf and keeps the record, but you are the legal owner. If the brokerage goes out of business, your shares are protected by SIPC (Securities Investor Protection Corporation) up to $500,000 per account.
Can I sell a stock the same day I buy it?
Yes, but if you do this more than three times in five business days, your brokerage may flag your account as a pattern day trader and require a $25,000 minimum balance. For most new investors, this is not a concern — just avoid frequent buying and selling in short windows.
What if I place an order and change my mind before it fills?
If the order has not filled yet, you can cancel it. Log into your account, find the pending order, and click "Cancel". If the order has already filled, you own the shares and must sell them to get your money back.