The Basic Process for Buying Stock on E*TRADE

To buy stock on E*TRADE, you log into your account, search for the stock by ticker symbol or company name, enter the number of shares you want, choose whether to place a market order (buy at the current price) or a limit order (buy only if the price drops to a certain level), review the order, and submit it. The order typically executes within seconds during market hours, and the shares appear in your account immediately.

You need three things before you can buy: an E*TRADE brokerage account that is already funded with cash, the ticker symbol of the stock you want to buy (a one- to four-letter code like AAPL for Apple or MSFT for Microsoft), and enough cash in your account to cover the purchase plus any applicable fees. E*TRADE does not charge a commission on stock trades, but you may pay a small regulatory fee depending on the order type.

Key Takeaways

  • You must have cash in your E*TRADE account before you can buy stock; you cannot buy on margin without a separate margin account setup.
  • Market orders execute immediately at the current price, while limit orders only execute if the stock reaches your specified price.
  • Stock orders placed during market hours (9:30 a.m. to 4 p.m. Eastern Time on weekdays) execute the same day; orders placed after hours or on weekends execute the next trading day.
  • Once your order executes, the shares settle in your account within two business days, but you can sell them immediately if you choose.

Where to Find the Stock Order Screen

Log into your E*TRADE account on the website or mobile app. On the website, click the "Trade" tab at the top of the page, then select "Stocks" from the dropdown menu. On the mobile app, tap the "Trade" icon at the bottom of the screen and select "Stocks."

You will see a search box labeled "Enter Symbol or Company Name." Type the ticker symbol (such as TSLA for Tesla) or the full company name. E*TRADE will show you a list of matching results. Click on the stock you want to buy. The stock detail page will open, showing the current price, recent performance, and a blue button labeled "Buy" or "Trade."

Entering Your Order Details

Click the "Buy" or "Trade" button to open the order entry screen. You will see fields for the number of shares, the order type, and the price (if applicable). In the "Quantity" field, enter how many shares you want to buy. For example, if you want to buy 10 shares of a stock trading at $50 per share, you would enter 10 in the quantity field.

Next, choose your order type. A market order buys the stock at whatever the current price is when your order reaches the market. A limit order lets you set a maximum price you are willing to pay; the order only executes if the stock price drops to that level or lower. Market orders are simpler and execute faster, but you may pay more than you expected if the price jumps. Limit orders give you price control but may never execute if the stock does not reach your price.

If you choose a limit order, enter your maximum price in the "Limit Price" field. E*TRADE will also ask you to set the order duration: "Day" means the order expires at the end of the trading day if it has not executed, and "Good-Til-Canceled" (GTC) means the order stays active for up to 60 days until it executes or you cancel it manually.

Reviewing and Submitting Your Order

Before you submit, E*TRADE shows you an order summary. Check that the stock symbol is correct, the number of shares matches what you intended, and the order type and price (if applicable) are what you wanted. The summary also shows the estimated total cost, including any fees. If everything looks right, click "Preview Order" or "Submit Order" depending on your account settings.

Some E*TRADE accounts require you to review the order on a second screen before final submission; others let you submit directly. Once you click the final submit button, your order is sent to the market. You will see a confirmation number and a message saying your order has been received. Save this confirmation number in case you need to reference the trade later.

When Your Order Executes and When You Own the Shares

If you placed a market order during market hours (9:30 a.m. to 4 p.m. Eastern Time, Monday through Friday), your order typically executes within seconds. The execution price may be slightly different from the price you saw when you placed the order, because stock prices move constantly. E*TRADE will send you a confirmation email showing the exact price you paid per share and the total amount deducted from your cash balance.

If you placed your order after market hours or on a weekend, it will not execute until the market opens the next trading day. Limit orders may take days or weeks to execute, or may never execute if the stock price never reaches your limit price. You can check the status of any pending order by going to the "Orders" or "Activity" section of your E*TRADE account.

Legally, the shares settle in your account two business days after the trade executes. However, E*TRADE lets you sell the shares immediately even before settlement is complete. If you sell before settlement, you are using a feature called same-day settlement, which is allowed in most cases but can trigger restrictions if you trade too frequently.

Understanding Costs and Fees

E*TRADE charges no commission on stock trades for most account types. However, you may pay a small regulatory fee (usually less than $1) on certain order types, such as short sales or orders routed to certain exchanges. These fees are shown in your order summary before you submit.

The main cost of buying stock is the price of the stock itself. If you buy 10 shares at $50 per share, you pay $500 plus any applicable fees. E*TRADE deducts this amount from your account's cash balance immediately when the order executes. If you do not have enough cash, your order will be rejected with a message saying "Insufficient Funds."

What Happens If Your Order Does Not Execute

If you placed a limit order and the stock price never reaches your limit price, your order will not execute. Day orders expire at the end of the trading day; GTC orders stay active for up to 60 days. You can cancel any pending order at any time by going to your "Orders" section, finding the order, and clicking "Cancel."

If you placed a market order and it did not execute, it usually means you placed it after market hours or on a weekend. The order will execute when the market opens the next trading day. In rare cases, a market order may be rejected if there is a technical issue or if the stock is halted from trading. E*TRADE will send you a message explaining why.

Frequently Asked Questions

Do I need a minimum amount of money to buy stock on E*TRADE?

E*TRADE does not set a minimum purchase amount for individual stocks. However, you must have enough cash in your account to cover the full cost of the shares plus any fees. Some stocks trade for less than $1 per share, so you could theoretically buy with very little money, but most stocks cost at least $10 to $100 per share.

Can I buy fractional shares on E*TRADE?

E*TRADE allows you to buy fractional shares (portions of a single share) through its Fractional Shares feature. Instead of entering a whole number like 10, you can enter 10.5 or 5.25. This is useful if you want to invest a specific dollar amount rather than a specific number of whole shares.

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

A market order buys the stock immediately at the current market price, which may be slightly higher or lower than the price you saw when you placed the order. A limit order lets you set a maximum price and only executes if the stock reaches that price or lower. Market orders are faster but less predictable; limit orders give you price control but may never execute.

How long does it take for my stock to appear in my account after I buy it?

The shares appear in your account immediately after the order executes, even though they do not legally settle for two business days. You can see them in your holdings right away and can sell them at any time, even before settlement is complete.

What if I accidentally place the wrong order?

If your order has not executed yet, you can cancel it by going to your "Orders" section, finding the order, and clicking "Cancel." If the order has already executed, you cannot undo it, but you can sell the shares immediately to reverse the trade. Keep in mind that selling immediately may result in a loss if the price has dropped since you bought.