You need a brokerage account, money to invest, and about 10 minutes to place your first trade

Buying stocks online means opening an account with a brokerage firm, depositing money, and using their website or app to place an order. The brokerage holds your account, executes the trade on the stock exchange, and keeps a record of what you own. You do not need a financial advisor, a large sum of money, or special permission — you just need to be 18 or older and have a valid Social Security number or tax ID.

The entire process from account opening to your first purchase typically takes one to three business days, though some brokerages now offer same-day or next-day funding. The cost to buy a single share of stock is the share price itself — if a stock costs $150 per share, buying one share costs $150 plus any fees your brokerage charges (though most major brokerages charge zero commission on stock trades).

Key Takeaways

  • You must open a brokerage account with a firm like Fidelity, Charles Schwab, E-Trade, or Robinhood before you can buy any stock.
  • Most brokerages require you to deposit money into your account before you can trade, and the deposit takes one to three business days to clear.
  • Once your money is in the account, you search for the stock by its ticker symbol, enter how many shares you want, and confirm the order.
  • Stock prices move constantly during market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays), so the price you see may not be the price you pay if you wait.
  • You own the stock immediately after the trade settles, which is usually two business days after you place the order.

Opening a brokerage account

A brokerage account is simply a holding place for your money and your stocks. You open one by visiting a brokerage's website, clicking "Open an Account" or similar, and filling out a form. You will need your name, address, date of birth, Social Security number, and employment information. The brokerage runs a background check (this takes a few minutes to a few hours) and then sends you a confirmation email with your account number and login credentials.

Major brokerages include Fidelity, Charles Schwab, E-Trade, TD Ameritrade, Interactive Brokers, and Robinhood. Each charges zero commission on stock trades, though they may charge fees for other services like wire transfers or margin accounts. Choose one based on whether you want a simple mobile app, detailed research tools, or low account minimums — most have no minimum deposit requirement.

You will also choose the type of account. A taxable brokerage account (also called a standard account) has no contribution limits and no tax advantages, but you pay taxes on any gains when you sell. A Roth IRA or Traditional IRA is a retirement account with tax benefits but strict rules about when you can withdraw money. For your first stock purchase, a taxable account is simpler.

Depositing money into your account

After your account is open, you must deposit money before you can buy stocks. Log into your account and look for "Deposit Funds," "Add Money," or "Fund Your Account." You can usually deposit by linking a bank account (the slowest method, taking one to three business days), using a debit card (often same-day or next-day), or wiring money (fastest, but may cost $10 to $25).

Start with a small amount if you are new to investing — $100 to $500 is enough to buy at least one share of most stocks and to learn how the platform works. Once the deposit clears, the money sits in your account as cash and is ready to invest.

Finding and ordering a stock

Every stock has a ticker symbol, a one- to five-letter code that identifies it. Apple is AAPL, Microsoft is MSFT, Tesla is TSLA. You search for the stock by typing its ticker symbol into the brokerage's search bar. The search returns the stock's current price, a chart of its price history, and basic information like the company name and market cap.

Click on the stock to open its detail page, then click "Buy," "Trade," or a similar button. A form appears asking how many shares you want to buy. Enter the number — if the stock costs $150 and you have $500, you could buy 3 shares for $450. Choose your order type: a market order buys at the current price immediately (the price you see may change slightly by the time the order executes), while a limit order lets you set a maximum price you are willing to pay (the order only executes if the stock drops to that price or lower).

Review the order summary, which shows the number of shares, the estimated cost, and any fees. Click "Confirm" or "Place Order." The order is now live.

What happens after you place an order

Your order reaches the stock exchange within seconds. If you placed a market order, it executes almost immediately at the best available price. If you placed a limit order, it waits in a queue until the stock price hits your limit (or expires if the price never reaches it). Either way, you receive a confirmation email with the order number, the number of shares, the price per share, and the total cost.

The trade settles two business days later, meaning the money leaves your account and the shares officially become yours. You can see the shares in your account immediately after the trade executes, but they are marked as "unsettled" until the settlement date. You can sell unsettled shares, but you cannot withdraw the cash from the sale until settlement is complete.

Understanding stock prices and market hours

Stock prices change constantly during market hours, which are 9:30 a.m. to 4 p.m. Eastern time on weekdays (Monday through Friday, excluding holidays). Outside these hours, the market is closed and prices do not change. If you place an order after 4 p.m., it will not execute until the market opens the next day.

The price you see on your screen is the last trade price — the price of the most recent sale. By the time you click "Buy," the price may have moved up or down slightly. A market order accepts whatever price the market offers at that moment. A limit order protects you by refusing to buy above a price you set, but it may never execute if the stock does not drop to your limit.

Fees and costs to know about

Most major brokerages charge zero commission on stock trades, meaning you pay only the stock price itself. However, some brokerages charge fees for other actions: wire transfers (usually $10 to $25), closing an account early, or using margin (borrowing money to buy stocks). Read your brokerage's fee schedule before opening an account.

You will also owe taxes on any profit when you sell. If you buy a stock for $100 and sell it for $150, you owe taxes on the $50 gain. The tax rate depends on how long you held the stock and your income level. A long-term capital gain (stock held over one year) is taxed at a lower rate than a short-term capital gain (stock held under one year).

Frequently Asked Questions

Can I buy stocks with less than $100?

Yes. Most stocks cost between $50 and $300 per share, so you can buy one share with $100 or less. Some stocks trade for under $10 per share. Your brokerage has no minimum purchase amount, though some brokerages have a minimum account balance (usually $0 to $500).

What if I want to sell my stock later?

Log into your account, find the stock in your holdings, and click "Sell." Enter how many shares you want to sell, choose market or limit order, and confirm. The sale executes during market hours and settles two business days later. The cash then sits in your account as cash available to withdraw or reinvest.

Do I need to pick individual stocks or can I buy funds instead?

You can buy both. Individual stocks let you own a piece of one company. Funds (like index funds or ETFs) bundle hundreds of stocks into one purchase, spreading your risk across many companies. Most new investors start with funds because they are simpler and less risky than picking individual stocks.

What happens if the stock price drops after I buy?

You own the shares at whatever price you paid. If the price drops, your account shows a loss on paper, but you have not lost money unless you sell. You can hold the stock and wait for the price to recover, sell and accept the loss, or buy more shares at the lower price.

Can I buy stocks on weekends or after 4 p.m.?

You can place an order anytime through your brokerage app or website, but it will not execute until the market opens. If you place an order on Saturday, it executes Monday morning at 9:30 a.m. (or later, depending on the queue). Some brokerages offer after-hours trading from 4 p.m. to 8 p.m., but prices are less stable and spreads are wider.