You need a Fidelity brokerage account before you can buy stock
Buying stock through Fidelity means opening a brokerage account with them first. This is not the same as having a Fidelity retirement account or a Fidelity bank account — it is a separate account type designed specifically for buying and selling stocks, bonds, mutual funds, and other investments. You create the account online, fund it with money from your bank, and then use that money to place stock orders.
Fidelity does not charge a commission when you buy or sell stocks through most of their account types. There are no monthly account fees for basic brokerage accounts. You pay only when you buy or sell — the price of the stock itself — though some mutual funds and exchange-traded funds (ETFs) may have internal expense ratios that reduce your returns over time.
Key Takeaways
- You must open a Fidelity brokerage account online using your Social Security number, address, and employment information before you can buy any stock.
- Funding your account requires linking a bank account and transferring money from that bank to Fidelity, which typically takes one to three business days.
- Once your account is funded, you search for a stock by its ticker symbol and place a buy order through Fidelity's website or mobile app.
- Fidelity charges no commission on stock trades, but the stock price itself and any fund expense ratios are costs you will pay.
- Your first stock purchase can be as small as one share, and you can buy fractional shares of expensive stocks for as little as one dollar.
Opening a Fidelity brokerage account online
Go to Fidelity's website and select "Open an Account." You will choose between account types — for buying individual stocks, a standard taxable brokerage account is the most common choice. Fidelity will ask for your full name, date of birth, Social Security number, current address, employment status, and annual income. This information is required by federal law so Fidelity can verify your identity and assess your financial situation.
The account opening process takes about 10 to 15 minutes. Fidelity will ask whether you want to fund the account immediately or later. You can complete the entire process online without visiting a branch or speaking to anyone. Once you submit your application, Fidelity typically approves it within minutes, though some applications may require manual review and take up to one business day.
After approval, you will receive a confirmation email with your account number and login credentials. Write down your username and password or store them in a password manager — you will need them to log in and fund your account.
Linking your bank account and transferring money
Log into your new Fidelity account and select "Add Money" or "Fund Your Account." Fidelity will ask you to link a bank account by entering your bank's routing number and your account number. You can find both on a check or by logging into your bank's website. Fidelity uses this information to verify that the bank account belongs to you.
After you link your bank account, you can transfer money from your bank to Fidelity. Most transfers take one to three business days. Fidelity will show you the transfer status in your account — you can watch the money move from "pending" to "available." Once the money is available in your Fidelity account, you can use it to buy stock immediately.
You can transfer as little as one dollar or as much as your bank allows in a single transfer. There is no minimum amount you must deposit to open an account, though some Fidelity account types have minimum balances for certain features.
Finding and buying your first stock
Log into your Fidelity account and look for the "Trade" or "Buy/Sell" section. You will see a search box where you can enter a stock's ticker symbol — a one- to four-letter code that represents a company. For example, Apple's ticker is AAPL, Microsoft is MSFT, and Tesla is TSLA. If you do not know a company's ticker, search for "[company name] ticker symbol" online or use Fidelity's stock search tool.
Once you find the stock, Fidelity will show you the current price, recent performance, and company information. You then decide how many shares to buy. If a stock costs $150 per share and you have $500 in your account, you could buy three full shares for $450. Fidelity also offers fractional shares, meaning you can spend exactly $500 and own 3.33 shares instead of being limited to whole numbers.
After you enter the number of shares, Fidelity shows you the total cost and asks you to confirm the order. You can place the order as a market order (buy at the current price immediately) or a limit order (buy only if the price drops to a specific level you set). Most first-time buyers use market orders. Click "Submit" or "Place Order," and your stock purchase is complete.
What happens after you buy stock
Your stock appears in your Fidelity account within seconds of the purchase. You will see the number of shares you own, the price you paid per share, and the total value of that position. Fidelity updates the value throughout the trading day as the stock price moves. You can hold the stock as long as you want, sell it whenever you choose, or buy more shares later.
Fidelity sends you a monthly or quarterly statement showing all your holdings and their current value. If a company pays dividends — regular cash payments to shareholders — Fidelity deposits that money into your account automatically. You can reinvest dividends to buy more shares or leave the cash in your account.
If you want to sell stock later, you log into your account, find the stock in your holdings, and click "Sell." You follow the same process as buying: choose the number of shares, confirm the price, and submit the order. The money from the sale appears in your account within two business days.
Understanding costs and account features
Fidelity charges zero commission on stock trades, which means you pay nothing to buy or sell. However, you still pay the stock price itself — if you buy 10 shares of a $50 stock, you pay $500 total. Some stocks and funds have expense ratios, which are small annual fees charged by the fund manager. These are deducted automatically and reduce your returns slightly each year.
Fidelity offers research tools, stock screeners, and educational content included with your account at no extra cost. You can set up automatic investments, where Fidelity buys stock on a schedule you choose — for example, $100 worth of a specific stock every month. You can also set up alerts that notify you when a stock price reaches a level you specify.
If you want to buy stocks on margin — borrowing money from Fidelity to buy more stock than you can afford — that requires a separate application and comes with interest charges. For most new investors, a standard cash account is sufficient and simpler.
Frequently Asked Questions
Do I need a minimum amount of money to open a Fidelity account?
No. Fidelity does not require a minimum deposit to open a brokerage account. You can open an account with zero dollars and fund it later. Some specific account types or investment products may have minimums, but a basic stock-trading account does not.
Can I buy stock with less than $100?
Yes. You can buy fractional shares starting at one dollar. If a stock costs $200 per share and you have $50, Fidelity lets you buy 0.25 shares. This means new investors with small amounts of money can still own pieces of expensive stocks.
How long does it take to buy stock after I fund my account?
Once money is available in your Fidelity account, you can buy stock immediately — within seconds. The delay is usually in the bank transfer, which takes one to three business days. After that, buying is instant.
What if I want to buy stock but do not know which companies to choose?
Fidelity offers educational resources, stock screeners, and research tools on their website. You can also buy index funds or ETFs, which own hundreds of stocks in a single fund. This spreads your risk across many companies instead of betting on one stock.
Can I cancel a stock order after I place it?
If you place a market order, it executes within seconds and cannot be cancelled. If you place a limit order that has not yet executed, you can cancel it before it fills. Once a trade is complete, you can only sell the stock later if you want to reverse the decision.