You need a brokerage account, money to invest, and about 15 minutes to place your first order
Buying a stock means purchasing a small ownership share in a company. To do this, you open an account with a brokerage — a firm 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 (a short code like AAPL for Apple), enter how many shares you want, and confirm the purchase. The brokerage executes the trade, and the shares appear in your account within one business day.
The entire process is now digital and costs nothing to start. Most brokerages have no account minimums, no monthly fees, and no charge per trade. The only money that leaves your pocket is the price of the shares themselves plus any small fees the brokerage charges — and many charge nothing at all.
Key Takeaways
- You must open a brokerage account with a firm like Fidelity, Charles Schwab, E*TRADE, or Robinhood before you can buy any stock.
- The account setup takes 10 to 15 minutes online and requires your Social Security number, address, and employment information.
- You fund your account by linking a bank account or transferring money, and the funds typically arrive within one to three business days.
- Once your money is in the account, you search for a stock by its ticker symbol, decide how many shares to buy, and place the order in seconds.
- Most brokerages charge no fees per trade, though some charge small commissions or require account minimums depending on the type of account.
Choose a brokerage and open an account
A brokerage is a licensed company that holds your money and executes your stock trades. The major brokerages include Fidelity, Charles Schwab, E*TRADE, TD Ameritrade, Robinhood, Webull, and Interactive Brokers. Each one has a website and a mobile app where you can open an account in minutes.
To open an account, you will need your Social Security number, a valid government ID, your current address, and basic employment information. The brokerage will ask you to verify your identity — this is a legal requirement. Some brokerages verify when ready online; others may ask for additional documents by mail. Once verified, your account is active and ready to fund.
Most brokerages offer a standard brokerage account (sometimes called a taxable account) with no minimum deposit, no monthly fees, and no per-trade commissions. Some also offer retirement accounts like IRAs, which have different tax rules and contribution limits. For your first stock purchase, a standard brokerage account is the simplest choice.
Fund your account with money to invest
After your account is open, you need to transfer money into it. Every brokerage lets you link a bank account and move money electronically. You log into your brokerage account, find the "Deposit" or "Transfer Funds" section, enter your bank's routing number and your account number, and authorize the transfer. The money typically arrives within one to three business days.
Some brokerages also accept wire transfers, checks by mail, or transfers from another brokerage account. Wire transfers are faster — usually same-day or next-day — but may carry a small fee. Check your brokerage's website for all the deposit methods it accepts.
You do not have to deposit a large amount. You can start with $100, $500, or any amount you choose. The only limit is what you can afford to invest without needing that money for bills or emergencies.
Find the stock you want to buy
Every publicly traded company has a ticker symbol — a short code of one to five letters. Apple's is AAPL, Microsoft's is MSFT, Tesla's is TSLA. You can find a company's ticker symbol by searching its name on your brokerage's website, on financial sites like Yahoo Finance or Google Finance, or straightforward by searching "[Company Name] ticker" online.
Once you have the ticker symbol, log into your brokerage account and use the search bar to find the stock. The brokerage will show you the current price per share, the company's name, and basic information like the stock exchange it trades on (usually NYSE or NASDAQ). Click on the stock to open its detail page.
Before you buy, you can read the company's financial information, recent news, and price history — all available free on your brokerage's platform. You do not have to do this research before your first purchase, but many people find it helpful to spend a few minutes learning about the company.
Decide how many shares to buy and place your order
On the stock's detail page, you will see a button to "Buy" or "Trade." Click it, and a form will appear asking how many shares you want to purchase. Enter the number of shares — you can buy fractional shares (like 2.5 shares) on most modern brokerages, so you do not have to buy whole numbers. The brokerage will show you the total cost before you confirm.
You will also choose an order type. A market order buys the stock when ready at whatever the current price is — this is the simplest choice for beginners. A limit order lets you set a maximum price you are willing to pay; the order only goes through if the stock drops to that price or lower. For your first purchase, a market order is the standard choice.
Review the order one more time to make sure the number of shares and total cost are correct, then click "Confirm" or "Place Order." The order is executed within seconds during market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays). If you place an order after market hours or on a weekend, it will execute when the market opens the next business day.
Your shares arrive in your account within one business day
After you place the order, the brokerage sends it to the stock exchange. The trade is confirmed, and your shares are credited to your account by the end of the next business day. You can see your shares and their current value in your account dashboard at any time.
Once you own the shares, you can hold them as long as you want, sell them whenever you choose, or buy more shares of the same stock or different stocks. There is no time limit on how long you must hold a stock, and there is no penalty for selling.
Understand the costs and taxes involved
Most brokerages charge zero commission per trade, meaning you pay only the price of the shares themselves. However, some brokerages or account types may charge small fees — check your brokerage's fee schedule on its website.
When you sell a stock for more than you paid for it, you owe capital gains tax on the profit. The tax rate depends on how long you held the stock and your income level. If you hold the stock for more than one year before selling, you pay long-term capital gains tax, which is usually lower than short-term rates. You do not owe tax until you sell — straightforward owning the stock does not trigger a tax bill.
If you buy stocks in a retirement account like a traditional IRA or Roth IRA instead of a standard brokerage account, the tax rules are different. Retirement accounts have contribution limits and rules about when you can withdraw money, but they offer tax advantages. You can open both types of accounts with the same brokerage.
Frequently Asked Questions
What is the minimum amount of money I need to start buying stocks?
Most brokerages have no minimum deposit requirement. You can open an account and buy your first stock with $50, $100, or whatever amount you choose. Some brokerages or specific investment products may have minimums, but standard brokerage accounts do not.
Can I buy a partial share of a stock?
Yes. Most major brokerages now allow fractional share purchases, so you can buy 0.5 shares, 2.3 shares, or any decimal amount. This makes it possible to invest a specific dollar amount rather than being forced to buy whole shares at higher prices.
How long does it take to see my money in the brokerage account after I transfer it?
Bank transfers typically take one to three business days. Wire transfers are faster, usually arriving same-day or next-day, but may carry a fee. Check your brokerage's website for the expected timeline based on your transfer method.
What happens if I place a stock order after the market closes?
Your order will be held and executed when the market opens the next business day at 9:30 a.m. Eastern time. If you place an order on a Friday after 4 p.m., it will execute Monday morning. You can cancel the order before market open if you change your mind.
Do I have to pay taxes on stocks I own but haven't sold yet?
No. You only owe tax when you sell a stock for a profit. straightforward owning shares does not trigger a tax bill, even if the price goes up. You will owe capital gains tax on the profit only when you sell.