The Basic Steps to Buy Stock on E*TRADE

To buy stock on E*TRADE, you log into your account, search for the stock by ticker symbol, 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 the trade during market hours (9:30 a.m. to 4 p.m. Eastern Time on weekdays).

Your account must have cash available to cover the purchase. If you have a margin account, you can borrow against your holdings, but a standard cash account requires the full dollar amount sitting in your account before you buy. E*TRADE will hold the cash and deduct it when the order fills.

Key Takeaways

  • You need a funded E*TRADE account and the stock's ticker symbol to place an order.
  • E*TRADE executes trades during market hours (9:30 a.m. to 4 p.m. Eastern, Monday through Friday), and after-hours orders sit until the market opens.
  • You can choose between a market order (buys at the current price) or a limit order (buys only at a price you set), and you can cancel or modify orders before they fill.
  • Stock purchases settle in two business days, meaning the shares appear in your account but you cannot sell them until settlement is complete.

Finding and Entering the Stock You Want to Buy

Open E*TRADE and log in with your username and password. Click on the Trade tab or the Stocks section, depending on which version of the platform you use. You will see a search box labeled "Enter Symbol" or similar. Type the stock's ticker symbol — for example, AAPL for Apple or MSFT for Microsoft — and press Enter or click Search.

E*TRADE will display the stock's current price, the bid-ask spread (the difference between what buyers will pay and what sellers are asking), and recent trading volume. Below that, you will see a button to buy or place an order. Click it. The platform will open a form where you enter the number of shares you want to purchase.

Choosing Your Order Type and Price

E*TRADE offers two main order types for stock purchases: market orders and limit orders. A market order buys the stock at whatever price it is trading at when your order reaches the market. This usually fills immediately during market hours, but the exact price may be slightly different from what you saw on screen because prices move constantly.

A limit order lets you set a maximum price you are willing to pay. If the stock is trading at $50 and you set a limit of $48, your order will only fill if the price drops to $48 or lower. Limit orders can take hours or days to fill, or they may never fill at all if the price never reaches your limit. The advantage is you control the price; the disadvantage is you might miss the purchase entirely.

For most first-time buyers, a market order is simpler. Enter your number of shares, select Market Order, review the estimated total cost (shares × current price, plus any commission if applicable), and proceed to the next step.

Reviewing and Submitting Your Order

Before you submit, E*TRADE shows you a summary: the stock symbol, the number of shares, the order type, the estimated price or price limit, and the total dollar amount that will be deducted from your account. Check that all details are correct. If you need to change the number of shares or the order type, you can go back and edit.

Once you confirm, click Submit or Place Order. E*TRADE will send your order to the market. If you placed a market order during market hours, it usually fills within seconds. If you placed an order after market hours (after 4 p.m. Eastern or before 9:30 a.m.), it will sit in the queue and execute when the market opens the next trading day.

You can cancel or modify an order as long as it has not filled yet. Go to your Orders section, find the pending order, and click Cancel or Edit. Once the order fills, you own the shares, but they will not be fully yours to sell until the settlement date, which is two business days after the trade date.

Understanding Settlement and When You Can Sell

When you buy stock, the trade settles in T+2, which means two business days after the trade date. On the settlement date, the shares officially transfer to your account and the cash is deducted from your balance. Until settlement is complete, you can see the shares in your account, but E*TRADE will not let you sell them.

For example, if you buy stock on a Monday, settlement occurs on Wednesday. You can sell on Wednesday or any day after. If you buy on a Friday, settlement is Monday (because Saturday and Sunday do not count as business days). Weekends and market holidays extend the settlement window.

Funding Your Account Before You Buy

Your E*TRADE account must have cash available before you place a buy order. You can fund your account by linking a bank account and transferring money, or by depositing a check through the mobile app. Bank transfers typically take three to five business days to clear, though E*TRADE may let you trade with the funds before they fully settle (this depends on your account type and history).

If you do not have enough cash for the shares you want to buy, you have two options: wait for a deposit to clear, or buy fewer shares. If your account is a margin account, you can borrow against your existing holdings, but this involves interest charges and additional risk.

What Happens After Your Order Fills

Once your order fills, you own the shares. E*TRADE sends you a confirmation email with the trade details: the symbol, the number of shares, the price per share, the total cost, and the settlement date. You can also see the trade in your account history and in your portfolio (which shows all your holdings and their current value).

Your shares will appear in your portfolio immediately, but their value will fluctuate with the market price. You can sell them anytime after settlement is complete. E*TRADE charges no commission on stock trades, so you only pay the bid-ask spread (the tiny difference between the buy and sell price that the market takes).

Frequently Asked Questions

Can I buy stock after the market closes?

Yes, you can place an order anytime, but it will not execute until the market opens. If you place an order after 4 p.m. Eastern on a weekday, it enters the queue and fills when the market opens the next trading day at 9:30 a.m. The price may be very different from what you saw when you placed the order.

What if I change my mind after I submit my order?

If your order has not filled yet, you can cancel it from your Orders section. Once the order fills and you own the shares, you can sell them anytime after settlement (two business days later). There is no penalty for canceling a pending order.

Do I pay a commission when I buy stock on E*TRADE?

E*TRADE charges no commission on stock trades. You only pay the bid-ask spread, which is the difference between what buyers will pay and what sellers are asking. This spread is typically a few cents per share and goes to the market, not to E*TRADE.

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

A market order buys at the current market price and usually fills immediately. A limit order only buys if the price drops to a level you set, so it may take time to fill or may not fill at all. Use a market order if you want the stock now; use a limit order if you want to wait for a better price.

Can I buy fractional shares on E*TRADE?

Yes, E*TRADE allows you to buy fractional shares, meaning you can own 0.5 shares or 2.3 shares instead of whole numbers only. This is useful if you want to invest a specific dollar amount in a high-priced stock. You can buy fractional shares through the standard buy process.