Opening a Fidelity brokerage account is the first step
To buy stocks through Fidelity, you need a brokerage account — a separate account from a retirement account like an IRA. You can open one online at Fidelity's website in about 15 minutes. You will need your Social Security number, a valid ID, your employment information, and a way to fund the account (a bank account or existing Fidelity account).
Fidelity offers several account types for stock trading. A standard taxable brokerage account lets you buy and sell stocks whenever you want, though you will owe capital gains tax on profits. A custodial account is for minors and requires an adult to manage it. Choose the account type that matches your situation before you proceed.
Once your account is open and verified — which usually takes one business day — you can fund it by linking a bank account or transferring money from another brokerage. Fidelity does not charge account maintenance fees for most brokerage accounts.
Key Takeaways
- You need a Fidelity brokerage account, which is different from a retirement account and takes about 15 minutes to open online.
- Fund your account by linking a bank account or transferring money from another brokerage before you can buy stocks.
- Use Fidelity's website or mobile app to search for a stock by ticker symbol, review its price and details, and place a buy order.
- Stock orders execute during market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays), and you own the shares once the order settles, usually within two business days.
Finding and researching a stock before you buy
Once your account is funded, you can search for stocks to buy. Log into Fidelity's website or app and use the search bar to find a stock by its ticker symbol — a one- to five-letter code that identifies each company. For example, Apple's ticker is AAPL and Microsoft's is MSFT. If you do not know the ticker, you can search by company name.
Fidelity's quote page shows the stock's current price, trading volume, 52-week high and low, and other data. Read the company's earnings reports, news, and financial statements to understand what you are buying. Fidelity provides links to SEC filings and company information on the quote page. Do not buy based on price alone — understand the business and why you think the stock is worth owning.
You can also set up a watchlist to track stocks you are considering before you commit money. This lets you see price changes over time and decide when to buy.
Placing a stock order through Fidelity
To buy a stock, navigate to its quote page and click the "Trade" or "Buy" button. Fidelity will ask you how many shares you want to buy. Enter the number and review the total cost — the share price multiplied by the number of shares, plus any applicable fees (though Fidelity charges no commission on stock trades).
You will then choose an order type. A market order buys the stock immediately at the current market price — the fastest option, but the price you pay may be slightly different from what you saw on the quote page because prices move constantly. A limit order lets you set a maximum price you are willing to pay; the order only executes if the stock falls to that price or lower. Limit orders take longer to fill and may not fill at all if the price never reaches your limit.
Review your order one more time, then submit it. Fidelity will show you a confirmation number. Keep this for your records.
Understanding when your order executes and when you own the shares
Stock markets are open Monday through Friday, 9:30 a.m. to 4 p.m. Eastern time. If you place an order during market hours, it executes almost immediately. If you place an order outside market hours or on a weekend, it will execute when the market opens the next trading day.
Execution is not the same as ownership. After your order executes, the trade must settle — a process that takes two business days. During settlement, money moves from your account to the seller, and the shares move to your account. You own the shares once settlement is complete, and you can see them in your account holdings.
If you sell a stock before settlement is complete, Fidelity may flag it as a "good-faith violation" if you do this repeatedly in a short time. To avoid this, wait for settlement before selling.
Monitoring your holdings and understanding costs
Once you own shares, you can see them in your Fidelity account under "Positions" or "Holdings." Fidelity shows your cost basis (what you paid), current price, and gain or loss. You can also set up alerts to notify you when a stock price reaches a certain level.
Fidelity charges no commission on stock trades, but you may encounter other costs. If you buy fractional shares (less than one full share), there is no additional fee. Some stocks pay dividends — cash payments to shareholders — which Fidelity deposits into your account automatically. You will owe tax on dividends in the year you receive them.
If you hold a stock for less than one year and then sell it, any profit is taxed as short-term capital gains, which are taxed at your ordinary income tax rate. If you hold it for one year or longer, profits are taxed as long-term capital gains, which usually have a lower tax rate. Keep records of when you bought and sold each stock for tax purposes.
Selling stocks and withdrawing money
To sell a stock, find it in your holdings, click "Sell," enter the number of shares, choose your order type (market or limit), and submit. The same two-business-day settlement period applies. Once the sale settles, the cash appears in your account as "cash available to withdraw."
You can withdraw money from your brokerage account at any time by linking a bank account and requesting a transfer. Fidelity typically processes withdrawals within one to three business days. There is no penalty for withdrawing money from a taxable brokerage account, but you will owe tax on any gains you realized when you sold stocks.
Frequently Asked Questions
Do I need a minimum amount of money to open a Fidelity brokerage account?
Fidelity does not require a minimum deposit to open a brokerage account. However, you need enough cash in the account to cover the cost of the stocks you want to buy. Some stocks trade for under $10 per share, so you can start with a small amount of money.
Can I buy stocks on the weekend or after market hours?
You can place an order on the weekend or after 4 p.m. Eastern time, but it will not execute until the market opens the next trading day at 9:30 a.m. Some brokers offer after-hours trading, but Fidelity's standard service does not. Your order will execute at the market open price, which may be different from the price you saw when you placed the order.
What happens if I do not have enough cash in my account to buy a stock?
Fidelity will reject your order if you do not have enough cash. You can deposit more money before placing the order, or you can buy fewer shares. Some investors use margin (borrowed money) to buy stocks, but this requires a margin account and carries risk — you can lose more than you invested.
Can I set up automatic purchases of the same stock every month?
Yes. Fidelity offers automatic investment plans that let you buy a specific stock or mutual fund on a schedule you choose — weekly, monthly, or quarterly. This is called dollar-cost averaging and can reduce the impact of price swings over time. Set this up in your account settings under "Automatic Investments."
What is the difference between buying individual stocks and buying mutual funds or ETFs through Fidelity?
Individual stocks give you ownership in one company. Mutual funds and exchange-traded funds (ETFs) bundle many stocks together, spreading your risk across multiple companies. Fidelity charges no commission on any of these, but mutual funds may have expense ratios (annual fees) and ETFs usually have lower fees. Beginners often start with ETFs or index funds because they are less risky than individual stocks.