Opening a Fidelity brokerage account and placing your first stock order

To buy stocks on Fidelity, you need a brokerage account, money in that account, and access to Fidelity's trading platform. The process takes about 10 minutes to set up and another few minutes to place an order. Fidelity does not charge commission on stock trades, so the only cost is the price of the shares themselves plus any bid-ask spread.

This guide walks through the actual steps: creating your account, funding it, finding a stock, and submitting a buy order. The mechanics are the same whether you use Fidelity's website or mobile app, though the buttons and menus look slightly different.

Key Takeaways

  • You must open a brokerage account with Fidelity, provide your Social Security number and address, and pass identity verification before you can trade.
  • Money must be in your Fidelity account before you place a stock order; you can link a bank account and transfer funds, or deposit a check by mail.
  • Stock orders on Fidelity are placed through the "Trade" or "Buy" button on the platform; you enter the stock symbol, number of shares, and order type before submitting.
  • Market orders execute immediately at the current price; limit orders let you set a maximum price you will pay and may take hours or days to fill.
  • Once your order fills, the shares appear in your account within one to two business days, though you own them immediately.

Creating and verifying your Fidelity brokerage account

Go to Fidelity.com and click "Open an account" or "get your free guide." Select "Brokerage account" from the account type menu. You will enter your name, date of birth, Social Security number, address, phone number, and email. Fidelity will ask whether you are a U.S. citizen and whether you have a Fidelity account already.

After you submit this information, Fidelity verifies your identity using public records. This usually takes a few minutes, but can take up to 24 hours. You will receive an email when verification is complete. Some applicants are asked to provide additional documents — a driver's license photo or a recent utility bill — if the initial check cannot confirm your identity. Once verified, your account is open and you can log in immediately.

If you already have a Fidelity retirement account (like an IRA) or an employer 401(k) through Fidelity, you can use the same login for your new brokerage account. Fidelity will link them under one username.

Funding your account before you buy

Money must be in your Fidelity account before you place a stock order. You have three main options: link a bank account and transfer electronically, deposit a check by mail, or wire money from your bank.

Electronic transfer is the fastest for most people. Log into your Fidelity account, go to "Accounts" or "Transfers," and select "Link a bank account." You will enter your bank's routing number and your account number. Fidelity will make two small test deposits to your bank account (usually $0.01 and $0.02) within one to two business days. You then confirm the amounts in your Fidelity account to verify you own the bank account. After verification, you can transfer money from that bank account to Fidelity in minutes; the money typically arrives within one to three business days.

Check deposit takes longer but requires no bank account linking. Write a check to "Fidelity Brokerage Services" and mail it to the address Fidelity provides in your account settings. Fidelity receives and processes checks within five to seven business days. You can also photograph a check and deposit it through the Fidelity mobile app, which speeds up the process slightly.

Wire transfer is fastest if you need money in your account the same day. Call Fidelity at 1-800-343-3548 and ask for wire instructions. You will provide your bank with Fidelity's routing number and your account number. Wires typically arrive within hours, though your bank may charge a fee ($15 to $30 is common).

Finding and selecting a stock to buy

Once your account is funded, log into Fidelity and look for the "Trade" button or "Buy/Sell" option on the home screen. Click it to open the order entry form. You will see a field labeled "Symbol" or "Enter symbol." Type the stock's ticker symbol — a one- to five-letter code that represents the company. For example, Apple is AAPL, Microsoft is MSFT, and Tesla is TSLA.

If you do not know the symbol, type the company name in the search field and Fidelity will show you matching stocks. Click the one you want. Fidelity will then display the current price, the day's high and low, and recent news about the company. You can review this information before you place an order.

Some stocks trade on different exchanges (the New York Stock Exchange, NASDAQ, or others), but Fidelity handles this automatically — you only need the symbol. If a company has multiple share classes (like Google, which trades as both GOOGL and GOOG), Fidelity will show you both options and explain the difference.

Choosing an order type and placing your buy order

After you select a stock, Fidelity asks you to enter the number of shares you want to buy. Type the quantity — for example, 10 or 100. Fidelity will show you the estimated total cost (shares × current price). You can then choose your order type.

Market order is the simplest. It buys the stock at whatever price it is trading at right now. If the stock is $150 per share and you order 10 shares, you will pay approximately $1,500 (plus any small bid-ask spread). Market orders execute within seconds during market hours (9:30 a.m. to 4 p.m. Eastern time, Monday through Friday). If you place a market order after hours or on a weekend, it will execute at the market open the next trading day.

Limit order lets you set a maximum price. You tell Fidelity: "Buy 10 shares of AAPL, but only if the price is $150 or less." If the stock is trading at $155, your order will wait. If the price drops to $150 or below, your order will fill automatically. Limit orders can take hours or days to fill, or may never fill if the price never reaches your limit. Limit orders are useful if you want to avoid overpaying or if you are buying a stock that swings in price throughout the day.

After you choose your order type and enter any limits, review the order summary. Fidelity shows you the symbol, number of shares, order type, and estimated cost. Click "Submit" or "Place order" to send it. You will see a confirmation number immediately. Your order is now in the system.

What happens after you submit your order

Market orders usually fill within seconds. You will see the filled price and the exact number of shares in your account within minutes. Limit orders may take longer or may not fill at all if the price never reaches your limit.

Once your order fills, the shares are yours immediately — you own them and can sell them anytime. However, the shares may not appear in your account balance for one to two business days due to settlement, a behind-the-scenes process where the exchange and your broker confirm the trade. You can still see the order in your order history and trade history right away, even if the shares have not settled yet.

Fidelity sends you an email confirmation of every trade. You can also view your orders and holdings by logging into your account and clicking "Accounts" or "Portfolio." Your current holdings show the number of shares, the price you paid, and the current market value.

Common mistakes and how to avoid them

The most common mistake is placing an order without money in your account. If you try to buy $1,500 worth of stock and your account has only $500, Fidelity will reject the order. Always check your account balance before you place an order, or transfer money a day or two before you plan to buy.

The second mistake is using a market order when you meant to use a limit order. If a stock is volatile and you place a market order, you may pay more than you expected. If you are unsure about the current price, use a limit order set slightly above the current price — it will fill quickly but protects you from a sudden jump.

The third mistake is typing the wrong stock symbol. Double-check the symbol before you submit. If you accidentally buy the wrong stock, you can sell it immediately, but you will lose money to the bid-ask spread and any price movement between your buy and sell.

Finally, do not assume your order filled just because you submitted it. Check your account or your email confirmation to verify that the order actually executed. If it did not fill within a few minutes (for a market order) or a few hours (for a limit order), log back in and check the status.

Frequently Asked Questions

Can I buy stocks with money that is still transferring into my account?

No. The money must be fully in your Fidelity account before you place an order. If you initiated a bank transfer that will arrive tomorrow, you cannot use that money today. Plan ahead and transfer funds at least one business day before you want to buy.

What is the bid-ask spread and why does it matter?

The bid-ask spread is the difference between the price someone will pay for a stock (the bid) and the price someone will sell it for (the ask). When you place a market order, you pay the ask price. The spread is usually small (a few cents), but on less popular stocks it can be larger. Limit orders let you avoid paying the ask price by setting your own maximum.

Can I cancel an order after I submit it?

Yes, but only if it has not filled yet. Log into your account, find the order in your order history, and click "Cancel." Market orders usually fill too fast to cancel, but limit orders can often be cancelled if the price has not reached your limit. Once an order fills, you cannot cancel it — you can only sell the shares.

Do I have to buy whole shares, or can I buy fractional shares?

Fidelity lets you buy fractional shares on most stocks. Instead of ordering 10 shares, you can order 10.5 or 9.75 shares. This is useful if you have a small amount of money and want to own a piece of an expensive stock. Fractional shares trade at the same price as whole shares and settle the same way.

When can I sell the stock after I buy it?

You can sell anytime the market is open, even immediately after your buy order fills. There is no holding period. However, if you sell within three business days of buying, you may trigger a "good faith violation" if you do not have enough settled cash in your account — Fidelity may restrict your account temporarily. For most people, this is not an issue, but it is worth knowing if you plan to trade frequently.