The main places to buy stocks are online brokerages, which let you open an account and trade from your computer or phone

You do not need to go through a bank or a financial advisor to buy stocks. Most people use an online brokerage — a company that holds your money and executes trades when you tell it to. You create an account, deposit cash, and then place orders to buy or sell shares. The brokerage keeps your stocks in an account registered to you and sends you statements showing what you own.

The main brokerages used by individual investors include Fidelity, Charles Schwab, E-Trade, TD Ameritrade, Robinhood, and Webull. Each charges different fees, offers different research tools, and has different minimum deposit requirements — some have no minimum at all. You can open an account in under an hour and start trading the same day or the next business day, depending on how quickly your deposit clears.

A second option is a full-service brokerage or financial advisor, where a person manages your account or advises you on what to buy. This costs more in fees but may make sense if you want someone else handling the decisions. A third option is a robo-advisor — a service that automatically builds and rebalances a portfolio for you based on your goals and risk tolerance. These sit between DIY brokerages and full-service advisors in cost and hands-off approach.

Key Takeaways

  • Online brokerages like Fidelity and Charles Schwab let you open an account, deposit money, and buy stocks yourself with no advisor required.
  • Most brokerages charge no commission per trade, though some charge account fees or require minimum deposits — compare these before opening.
  • You can also use a full-service advisor or robo-advisor if you want someone else making or guiding investment decisions for you.
  • Your stocks are held in an account registered to you, and you receive statements showing your holdings and their current value.
  • Opening an account typically takes under an hour, and you can begin trading the next business day after your deposit clears.

How to choose between online brokerages

The choice between brokerages usually comes down to fees, research tools, and ease of use. Most major brokerages now charge zero commission per trade, so the cost difference is often in account maintenance fees, margin interest rates, or premium features. Some brokerages charge nothing to hold an account; others charge annual fees unless you maintain a minimum balance.

Research tools and educational content vary widely. Fidelity and Charles Schwab offer extensive research, screeners, and educational materials. Robinhood and Webull focus on simplicity and mobile trading. E-Trade and TD Ameritrade sit in the middle. If you are new to stocks, a platform with strong educational resources and a simple interface may matter more than advanced tools you will not use yet.

Minimum deposit requirements have largely disappeared, but some brokerages still require $500 or $1,000 to open an account. Check the specific brokerage's website for current requirements. Also check whether the brokerage offers the types of accounts you want — some focus on standard taxable accounts, while others emphasize retirement accounts like IRAs.

Retirement accounts versus taxable accounts

Most brokerages let you open two kinds of accounts: a taxable brokerage account and a retirement account like a Traditional IRA or Roth IRA. The difference matters for taxes and withdrawal rules.

A taxable account has no contribution limits and no restrictions on when you withdraw money. You pay taxes on dividends and capital gains each year. A retirement account has annual contribution limits (currently $7,000 for IRAs, though this changes) and tax advantages — either you deduct contributions now (Traditional IRA) or you pay no tax on withdrawals later (Roth IRA). In exchange, you generally cannot withdraw money before age 59½ without penalty.

Most people start with a taxable account if they are new to investing, because there are no rules about when you can take the money out. Once you understand how stocks work and have steady income, opening a retirement account makes sense because of the tax benefits. Many investors use both — a retirement account for long-term wealth building and a taxable account for shorter-term goals or extra savings.

What you need to open an account

Opening a brokerage account requires basic personal information and proof of identity. You will need your Social Security number, date of birth, address, and employment information. The brokerage will ask whether you work in finance or have other conflicts of interest — answer honestly, as these questions are required by law.

You do not need to be a U.S. citizen to open an account, but you do need a Social Security number or Individual Taxpayer Identification Number (ITIN). Non-citizens with a valid visa can open accounts at most brokerages.

After your account is approved, you deposit money by linking a bank account or transferring funds. Most brokerages process deposits within one to three business days. Once the money is in your account, you can place your first trade immediately.

How stocks are held and protected

When you buy a stock through a brokerage, the shares are held in an account registered to you. The brokerage acts as a custodian — it keeps the shares safe and handles the paperwork, but you own them. If the brokerage fails, your stocks are protected because they are not the brokerage's property; they belong to you.

Cash held in your brokerage account is also protected, up to $250,000 per account, through SIPC (Securities Investor Protection Corporation) insurance. This protects you if the brokerage goes bankrupt. It does not protect you against losses from bad stock picks — only against the brokerage itself failing.

Some brokerages also carry additional insurance beyond SIPC. Check the brokerage's website to see what coverage they offer. This is especially important if you plan to hold large amounts of cash in the account while deciding what to buy.

Alternatives if you want professional guidance

If you do not want to pick stocks yourself, a robo-advisor automatically builds a portfolio based on your age, goals, and risk tolerance. Services like Betterment, Wealthfront, and Vanguard Personal Advisor Services charge a percentage of your assets under management — typically 0.25% to 0.50% per year. They rebalance your portfolio automatically and handle tax-loss harvesting. This is cheaper than hiring a human advisor but more expensive than managing your own account.

A financial advisor or investment manager can also manage your account for you. Advisors charge either a flat fee, an hourly rate, or a percentage of assets under management. Some are fiduciaries, meaning they are legally required to act in your best interest; others are not. Ask whether an advisor is a fiduciary before hiring them. Advisor fees are higher than robo-advisors but include personalized advice and ongoing relationship management.

You can also use a discount broker with advisory services — many brokerages like Fidelity and Charles Schwab offer free or low-cost consultations with advisors, even if you manage most of your account yourself. This is a middle ground if you want occasional guidance without paying ongoing advisory fees.

Getting started with your first purchase

Once your account is open and funded, buying your first stock involves a few steps. Log into your brokerage account and search for the stock by its ticker symbol — a one- to five-letter code like AAPL for Apple or MSFT for Microsoft. The platform will show you the current price and recent trading history.

You then decide how many shares to buy. If a stock costs $150 per share and you have $1,500 to invest, you can buy 10 shares. Some brokerages also offer fractional shares, meaning you can buy a portion of a share — useful if a stock is expensive and you want to invest a smaller amount.

After you enter the number of shares, you place an order. Most orders are market orders, which execute immediately at the current price. You can also place a limit order, which only executes if the price drops to a level you specify. The order usually fills within seconds during market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays). After the trade settles — usually two business days later — the shares appear in your account.

Frequently Asked Questions

Do I need a lot of money to start investing in stocks?

No. Most brokerages have no minimum deposit requirement, and many offer fractional shares so you can invest small amounts. You can open an account with $100 or even $10 and buy partial shares of expensive stocks. Starting small and adding money over time is a common approach.

Can I lose more money than I invested?

With regular stock purchases, no — your loss is limited to what you invested. If a stock goes to zero, you lose your money but owe nothing more. However, if you use margin (borrowed money) or trade options, you can lose more than your initial investment. Most beginners should avoid these strategies.

What is the difference between a brokerage and a bank?

A bank holds your money and offers savings accounts and loans. A brokerage holds your money and stocks and lets you trade securities. Some companies, like Fidelity and Charles Schwab, do both — they offer banking services and brokerage services. You can use either for stocks, but a brokerage is designed specifically for trading.

How much does it cost to buy stocks?

Most brokerages charge zero commission per trade, so buying a stock costs nothing in fees. However, you may pay account maintenance fees (usually waived if you meet minimum balance requirements), margin interest if you borrow money, or advisory fees if you use a robo-advisor or financial advisor. Check the brokerage's fee schedule before opening an account.

Can I buy stocks through my bank?

Yes, many banks offer brokerage services or partner with brokerages. However, banks often charge higher fees and offer fewer tools than dedicated online brokerages. If your bank offers brokerage services, compare their fees and features to independent brokerages before deciding.