You need a brokerage account, money to invest, and about ten minutes

Buying an ETF is simpler than buying individual stocks. You open an account with a broker, deposit money, search for the ETF by its ticker symbol, and place a buy order during market hours. The whole process takes minutes once your account is funded. The ETF then sits in your account and trades automatically whenever the market is open.

The hardest part for most people is not the mechanics—it is deciding which ETF to buy and how much money to put in. The buying itself is straightforward, and the same across nearly every broker.

Key Takeaways

  • You must open a brokerage account with a broker like Fidelity, Schwab, or Vanguard before you can buy any ETF.
  • Search for the ETF using its ticker symbol (a short code like SPY or VOO), not its full name, to find the exact fund.
  • Place a buy order during market hours—typically 9:30 a.m. to 4 p.m. Eastern time on weekdays when the stock market is open.
  • Your money must be in the account and settled before you can use it to buy; this usually takes one to three business days after you deposit it.
  • Once you own the ETF, you do not have to do anything; it holds a basket of investments and trades as a single unit.

Step 1: Choose a broker and open an account

A broker is a company that lets you buy and sell investments. Common brokers include Fidelity, Charles Schwab, Vanguard, E*TRADE, and TD Ameritrade. Each one has a website and an app where you can manage your account.

To open an account, you visit the broker's website, click "Open an Account" or similar, and fill out a form with your name, address, Social Security number, and employment information. The broker will ask what type of account you want—usually a regular taxable account (called a brokerage account) or a retirement account like an IRA. For most people buying their first ETF, a regular brokerage account is the right choice.

The application takes 10 to 15 minutes. The broker will review it and send you a confirmation email, usually within a few hours or by the next business day. You can then log in and fund your account.

Step 2: Deposit money into your account

Once your account is open, you need to move money into it. Most brokers let you link a bank account and transfer money electronically. You log into your broker account, find the "Deposit" or "Transfer Funds" section, enter your bank details, and choose how much to transfer.

The money usually arrives within one to three business days. Some brokers offer faster transfers for an extra fee, or they may let you deposit by check or wire transfer. Check your broker's website for the options they offer.

Important: the money must be fully settled in your account before you can use it to buy an ETF. If you transfer money on a Monday, it may not be available to invest until Wednesday or Thursday. Your broker will show you when the funds are available.

Step 3: Find the ETF you want to buy

Once your money is in the account, log into your broker and look for the "Trade" or "Buy" section. You will see a search box where you can enter a ticker symbol—the short code that identifies an ETF. For example, SPY is the ticker for the SPDR S&P 500 ETF, and VOO is the ticker for the Vanguard S&P 500 ETF.

Search by ticker, not by the fund's full name. The full name is long and easy to mistype. The ticker is short and exact. Your broker will show you the ETF's current price, how many shares are trading, and other details. Make sure you have found the right fund before you place an order.

Step 4: Decide how many shares to buy

ETFs trade like stocks—you buy them one share at a time. If an ETF costs $100 per share and you have $1,000 to invest, you can buy 10 shares. If it costs $50 per share, you can buy 20 shares with the same $1,000.

Some brokers now offer fractional shares, meaning you can buy a portion of a share. If you have $1,000 and the ETF costs $150 per share, you could buy 6.67 shares instead of being limited to 6 whole shares. Check whether your broker offers fractional shares—most do now, but not all.

Decide how much of your money you want to invest in this ETF. You do not have to invest all of it at once. Many people invest a fixed amount every month or every few months.

Step 5: Place your buy order during market hours

In your broker's trading section, enter the number of shares you want to buy and click "Buy" or "Place Order." Your broker will show you a summary: the ticker, the number of shares, the current price, and the total cost. Review it carefully, then confirm the order.

Your order will only go through if you place it while the stock market is open. The market is open Monday through Friday, 9:30 a.m. to 4 p.m. Eastern time. If you place an order after 4 p.m. or on a weekend, it will wait until the market opens the next business day.

Once the market opens and your order goes through, you own the ETF. Your broker will show it in your account holdings. You will receive a confirmation email with the details of your purchase, including the price you paid per share and the total amount spent.

What happens after you buy

After you own the ETF, you do not have to do anything. The fund automatically holds the investments inside it—for example, if you bought an S&P 500 ETF, it holds 500 stocks. As those stocks move up and down, your ETF moves with them.

Some ETFs pay dividends, which are small cash payments from the companies inside the fund. Your broker will automatically reinvest these dividends into more shares of the ETF, or hold them as cash, depending on your account settings. You can change this setting anytime.

You can sell your ETF shares anytime the market is open, using the same process in reverse. You search for the ticker, enter the number of shares you want to sell, and place a sell order. The money from the sale will land in your account within one to three business days.

Frequently Asked Questions

Can I buy an ETF with less than $100?

Yes. If your broker offers fractional shares, you can invest any amount—even $10 or $25. You will own a portion of a share. If your broker does not offer fractional shares, you need enough money to buy at least one whole share, which varies by ETF price.

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

A market order buys the ETF at whatever price it is trading at right now. A limit order lets you set a maximum price you are willing to pay; if the ETF never drops to that price, your order will not go through. For most people buying ETFs, a market order is simpler and fine.

Do I pay a fee every time I buy an ETF?

Most major brokers charge zero commission to buy or sell ETFs. Some brokers may charge a small fee for certain ETFs or for certain account types, but this is rare. Check your broker's fee schedule before you open an account.

What if I place a buy order after the market closes?

Your order will sit in a queue and execute when the market opens the next business day. You will pay whatever the ETF's price is at that opening time, not the price it was when you placed the order. If you want to control the exact price, place your order during market hours.

Can I set up automatic purchases of an ETF?

Yes. Most brokers offer automatic investment plans where you can set up a recurring transfer of money and an automatic buy order for an ETF on a set schedule—weekly, monthly, or quarterly. This is called dollar-cost averaging and is a common way to invest over time.