The basic steps to buy a stock in Fidelity
Open the Fidelity app and tap the Trade tab at the bottom of the screen. Search for the stock you want by its ticker symbol — for example, AAPL for Apple or MSFT for Microsoft. Tap the stock name when it appears, then tap Buy.
Enter the number of shares you want to purchase. Fidelity will show you the current price per share and the total cost before you confirm. Review the order details, then tap Review Order and Place Order. The trade executes immediately during market hours (9:30 a.m. to 4 p.m. Eastern Time on weekdays), or queues for the next market open if you place it after hours.
Your shares appear in your account within one business day, though you can see the pending order in your activity feed right away. The cash to pay for the shares must already be in your Fidelity account — either from a deposit or from selling other holdings.
Key Takeaways
- Search by ticker symbol in the Trade tab, select the stock, enter your share quantity, and confirm the order to buy.
- Orders placed during market hours (9:30 a.m. to 4 p.m. Eastern, weekdays) execute at that moment; after-hours orders wait for the next market open.
- You must have cash in your Fidelity account before you buy — the app will not let you place an order if your balance is too low.
- Stocks settle in your account within one business day, but you can see the order status immediately in your activity history.
- Fidelity charges no commission on stock trades, but you pay the bid-ask spread (the difference between what buyers and sellers are willing to pay).
Finding the right stock to buy
The Trade tab includes research tools to help you decide what to buy. Tap Stocks at the top, then use the search bar or browse by category — sectors like Technology, Healthcare, or Financials appear as tabs. Each stock page shows the current price, a price chart, company information, and analyst ratings.
You can also set up watchlists to track stocks you are considering before you buy. Tap the heart icon on any stock page to add it to your watchlist, then check back on its price movement over days or weeks. This helps you avoid buying on impulse and gives you time to research whether the company fits your goals.
Understanding order types and timing
By default, Fidelity places a market order, which buys at whatever price the stock is trading at the moment your order reaches the market. This executes almost instantly during trading hours, but the exact price you pay may be slightly different from what you saw on your screen.
If you want more control over price, you can set a limit order instead. Tap Order Type before you place the trade and select Limit. Enter the maximum price you are willing to pay per share. The order only executes if the stock drops to that price or lower. If it never reaches your limit, the order stays open until you cancel it or the market closes that day.
Orders placed after 4 p.m. Eastern or before 9:30 a.m. are held as pre-market or after-hours orders. These execute during extended trading hours (4 p.m. to 8 p.m. and 7 a.m. to 9:30 a.m.), but with wider price swings and fewer buyers and sellers. Most new investors stick to regular market hours to avoid surprises.
Funding your account before you buy
You cannot buy stocks without cash in your account. Link a bank account to your Fidelity account by going to Account (bottom right) > Transfers > Add Bank Account. Follow the prompts to verify your bank details.
Once your bank is linked, tap Deposit and enter the amount you want to transfer. Most deposits arrive within one to three business days, though Fidelity offers Instant Funding for amounts up to a certain limit (the limit depends on your account history and verification status). With Instant Funding, you can buy stocks the same day you deposit.
If you already have stocks or other investments in your Fidelity account, you can sell them to raise cash for a new purchase. The proceeds from a sale settle within one business day, but you can use the cash to buy immediately in most cases.
What happens after you place the order
Your order confirmation appears on screen with an order number. Tap Account > Activity to see the order status anytime. During market hours, a market order shows as Filled within seconds. A limit order shows as Open until the price target is hit or you cancel it.
Once the order is filled, the shares are yours, but they do not appear in your Positions list until the trade settles — usually the next business day. During that one-day window, you can see the pending trade in your activity history and in your account balance (the cash is deducted), but you cannot sell the shares yet.
If you change your mind immediately after placing an order, you can cancel it from the Activity page. Market orders cannot be cancelled because they execute instantly, but limit orders can be cancelled as long as they have not filled yet.
Costs and fees to know about
Fidelity charges no commission on stock trades through the app. However, you pay the bid-ask spread — the difference between what a buyer is willing to pay and what a seller is asking. On popular stocks, this spread is tiny (a penny or two per share). On less-traded stocks, the spread can be wider, raising your effective cost.
If you use a limit order, you avoid overpaying, but you risk the order never filling if the stock does not drop to your price. If you place an order during after-hours trading, you may see a wider spread because fewer traders are active.
Fidelity also offers fractional shares, which means you can buy a partial share if you do not have enough cash for a full one. For example, if a stock costs $500 per share and you have $250, you can buy 0.5 shares. This is useful for building a diversified portfolio with a small amount of money.
Common mistakes to avoid
Do not place an order without confirming you have enough cash in your account. If your balance is too low, the order will be rejected, and you will see an error message. Check your Cash Available balance before you tap Place Order.
Do not confuse a stock ticker with a company name. TSLA is Tesla, but searching for "Tesla" might also show results for other companies with similar names. Always verify the ticker symbol and the company before you buy.
Do not assume the price on your screen is the price you will pay. Stock prices move constantly, and by the time your order reaches the market, the price may have shifted. Market orders are especially vulnerable to this. If price precision matters to you, use a limit order instead.
Do not buy during after-hours trading unless you have a specific reason. Spreads are wider, prices are more volatile, and fewer shares trade hands, which can make it harder to buy or sell at a reasonable price.
Frequently Asked Questions
Can I buy stocks with unsettled cash from a recent sale?
Yes, in most cases. Fidelity lets you use unsettled proceeds to buy new stocks immediately, even though the sale itself will not settle for one business day. However, if you sell and buy repeatedly without waiting for settlement, you may trigger a free-riding violation, which can restrict your account. For occasional trades, this is not a concern.
What is the difference between a market order and a limit order?
A market order buys at the current price and executes almost instantly. A limit order sets a maximum price you will pay and only executes if the stock drops to that level or lower. Limit orders give you price control but may never fill if the stock does not reach your target.
Why did my order show a different price than what I saw on the app?
Stock prices change constantly, and the price displayed on your screen is a snapshot from a moment ago. By the time your order reaches the market, the price may have moved. This is called slippage. Market orders are most vulnerable to slippage; limit orders prevent it by refusing to buy above your set price.
Can I cancel a stock order after I place it?
Market orders execute instantly and cannot be cancelled. Limit orders can be cancelled as long as they have not filled yet. Go to Account > Activity, find the order, and tap Cancel. Once an order is filled, you own the shares and would need to sell them to reverse the trade.
How long does it take for my stock purchase to show up in my account?
The order fills immediately during market hours, but the shares settle within one business day. You can see the pending trade in your activity history right away, and the cash is deducted from your balance immediately. The shares appear in your Positions list once settlement is complete.