How to buy 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 your order type, and submit. The whole process takes about two minutes once your account is funded. E*TRADE will show you the current price, let you review the order before it goes through, and then execute it during market hours (9:30 a.m. to 4 p.m. Eastern Time on weekdays).

You need three things before you can buy: an E*TRADE brokerage account that is already open and funded, money in your account (either cash or available margin if you have a margin account), and the ticker symbol of the stock you want to buy. If your account is not yet funded, you will need to transfer money from your bank first — this usually takes one to three business days to clear.

Key Takeaways

  • You must have cash or available margin in your E*TRADE account before you can place a stock order.
  • Stock orders placed during market hours (9:30 a.m. to 4 p.m. ET, weekdays) execute at or near the price you see; orders placed after hours execute the next trading day.
  • A market order buys at the best available price right now; a limit order lets you set a maximum price you will pay.
  • E*TRADE charges no commission on stock trades, but you pay the bid-ask spread (the difference between what buyers offer and what sellers ask).

Finding and searching for a stock

Open E*TRADE and log in with your username and password. Click on the Trade tab at the top of the page, then select Stocks. You will see a search box where you can type either the company name or the ticker symbol — a one- to four-letter code that identifies the stock (for example, AAPL for Apple or MSFT for Microsoft).

If you do not know the ticker symbol, type the company name and E*TRADE will show you matching results. Click on the stock you want, and E*TRADE will open a quote page showing the current price, the day's high and low, volume, and other data. This is where you confirm you have found the right company before you place an order.

Choosing between market and limit orders

Once you have found your stock, you will choose an order type. A market order buys the stock at whatever price it is trading at right now. If the stock is at $50 when you submit, you will pay approximately $50 per share (the exact price may shift slightly between when you click and when the order executes, especially if the stock is moving fast). Market orders almost always fill immediately during market hours.

A limit order lets you set a maximum price you are willing to pay. If you set a limit of $50 and the stock is currently $52, your order will wait until the price drops to $50 or below — or it will never fill if the price never reaches your limit. Limit orders give you price control but no may provide the order will execute. Most beginners use market orders because they are simpler and fill right away.

Entering the number of shares and reviewing your order

After you choose your order type, E*TRADE will ask you how many shares you want to buy. Enter the number. E*TRADE will then show you an order review screen that displays the stock name, ticker, number of shares, order type, and the estimated total cost (number of shares times the current price). Check this information carefully — this is your last chance to catch a mistake before the order goes to the market.

The review screen also shows you the time the order will be active. If you place an order during market hours, it will execute that day. If you place it after 4 p.m. ET or on a weekend, it will be queued for the next trading day. Once you are satisfied with everything, click the button to submit the order (usually labeled "Place Order" or "Buy").

What happens after you submit your order

If you placed a market order during market hours, E*TRADE will execute it within seconds to a few minutes. You will see a confirmation number and the actual price you paid per share. This price may be slightly different from the price you saw when you searched — that is normal and is called slippage. The shares will appear in your account immediately, though the cash will not leave your account until the trade settles, which happens two business days later.

If you placed a limit order or an order after market hours, it will sit in a queue until conditions are met or the order expires. E*TRADE will send you an email or notification if your order fills. You can cancel an order that has not yet filled by going to your Orders page and clicking Cancel.

Understanding costs and the bid-ask spread

E*TRADE does not charge a commission on stock trades, which means you do not pay a flat fee per trade. However, you do pay the bid-ask spread — the difference between what buyers are offering to pay (the bid) and what sellers are asking (the ask). If the bid is $50.00 and the ask is $50.05, you will pay $50.05 when you buy. This spread is usually small for popular stocks but can be wider for less-traded stocks.

You may also pay fees if you use margin (borrowed money) to buy stock, or if you trade options or other products. For basic stock purchases with cash in your account, there are no hidden fees beyond the spread.

Timing your order: market hours and after-hours trading

The stock market is open from 9:30 a.m. to 4 p.m. Eastern Time on weekdays (Monday through Friday). Orders placed during these hours execute at or near the price you see. E*TRADE also offers after-hours trading from 4 p.m. to 8 p.m. ET, but after-hours orders may not fill, may fill at a worse price, and have wider spreads because fewer traders are active.

If you place an order after 8 p.m. or on a weekend, it will wait until the market opens the next trading day. Most beginners should place orders during regular market hours to avoid surprises. The market is closed on weekends and on federal holidays like Thanksgiving and Christmas.

Frequently Asked Questions

What if I do not have enough cash in my account to buy the stock?

Your order will be rejected. You must have enough cash or available margin to cover the full purchase price before you submit. If you need to add money, transfer it from your bank first — this takes one to three business days to clear. Once the money is in your account, you can place your order.

Can I cancel a stock order after I place it?

Yes, but only if it has not yet filled. Go to your Orders page, find the order, and click Cancel. If the order has already executed, you cannot cancel it, but you can sell the shares you just bought. Cancellations usually go through within seconds during market hours.

Why is the price I paid different from the price I saw when I searched?

Stock prices change constantly during market hours. The price you see is a snapshot from a moment ago. When your order executes, the stock may have moved up or down. This is called slippage and is normal. Limit orders prevent this by setting a maximum price you will pay.

Do I have to wait for the money to leave my account before I own the shares?

No. You own the shares immediately after the order fills, even though the cash does not leave your account until two business days later (this is called the settlement period). You can sell those shares the next day if you want, though you may face restrictions if you trade too frequently.

What is the difference between a day order and a good-till-canceled order?

A day order expires at the end of the trading day if it does not fill. A good-till-canceled (GTC) order stays active until it fills or you manually cancel it, which can be days or weeks later. E*TRADE usually defaults to day orders for limit orders, so check before you submit if you want it to stay active longer.