Discount brokers offer commission-free trades and low fees — ideal for DIY investors.
Accounts open in 1–3 days; typically no minimum deposit required.
Market orders execute fast; limit orders offer price control but may miss trades.
Watch for hidden costs like bid-ask spreads, margin interest and inactivity fees.
Buying stocks online puts direct control of your investment decisions in your hands. The process requires understanding your options, choosing the right platform and executing trades with clarity about costs and timing. Most investors can complete their first stock purchase within hours of opening an account.
How to buy stocks online
Online stock trading eliminates traditional barriers between investors and financial markets. You connect directly to exchanges through brokerage platforms, placing orders that execute within seconds during market hours. The entire process operates digitally, from account funding to trade confirmation.
The basic workflow remains consistent across platforms:
Open and fund an account. Provide your personal information and sign up. Then, link a bank account or transfer assets to fund your account.
Research your target stocks. Do your due diligence on potential stocks, considering your time horizon, risk tolerance and investing goals. Search for the stock by name or ticker symbol.
Place buy orders. Determine the number of shares or dollar amount you want to invest and buy the stock.
Monitor your positions. Regularly review your portfolio to track performance and adjust your strategy as needed.
Each step involves specific decisions about costs, timing and risk management that affect your investment outcomes. Most brokers provide mobile apps alongside web platforms, allowing stock purchases from anywhere with internet access.
Regulatory protections cover your account through Securities Investor Protection Corporation (SIPC) insurance up to $500,000 per account, including $250,000 in cash.(1) This coverage protects against brokerage failures but not investment losses from stock price declines.
1. Choose your brokerage platform
Your brokerage choice determines your trading costs, available research tools and investment options. Full-service brokers offer personalized advice but charge higher commissions. Discount brokers provide self-directed trading at lower costs. Robo-advisors automate portfolio management, but most limit individual stock selection.
Platform type
Examples
Commission range
Best for
Limitations
Traditional discount brokers
Charles Schwab, Fidelity, E*TRADE
$0–$1
Comprehensive investing needs
Advisory services cost extra, less innovative features, higher options commissions
Investors seeking advice and professional management
Higher costs, potential conflicts
Robo-Advisors
Betterment, Wealthfront, Acorns
0.25%–0.50% annually
Passive portfolio management
No individual stock picking
Most brokers offer commission-free stock trades on most US exchanges. They compete primarily on research quality, platform usability and additional services like options trading or international markets.
Our top broker picks for where to buy stocks online
Compare our top three broker picks side by side. Select the Go to Site button for more information about a particular exchange.
Become a Finder member, open a new SoFi Active Invest Account and make a first deposit of $1,250 or more. Offer ends on June 10, 2026.
T&Cs and limits apply.
0588148b-2286-4b8f-9672-9c8cdafc0370-Get up to $1,000 in stock
Probability of member receiving $1,000 is 0.026%. If you don’t make a selection in 45 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Probability percentage is subject to decrease.
Terms and conditions apply*. For 401k rollovers, existing SoFi IRA members must complete 401k rollovers via this link See full terms and For SoFi members without a SoFi IRA, a SoFi IRA must first be opened, and 401k rollover must be completed utilizing Capitalize via this link. SoFi and Capitalize will charge no additional fees to process a 401(k) rollover to a SoFi IRA. SoFi is not liable for any costs incurred from the existing 401k provider for rollover. Please check with your 401k provider for any fees or costs associated with the rollover. For IRA contributions, only deposits made via ACH and cash transfer from SoFi Bank accounts are eligible for the match. Click here for the 1% Match terms and conditions.
Must be a SoFi Plus member at the time a recurring deposit is received into your SoFi Active or Automated investing account to qualify. Bonus calculated on net monthly recurring deposits made via ACH and paid out as Rewards Points. See Rewards Terms of Service. SoFi reserves the right to change or terminate this promotion at any time without notice. See terms and limitations. https://www.sofi.com/sofiplus/invest/#disclaimers
eToro securities trading offered by eToro USA Securities, Inc. (‘the BD”), member of FINRA and SIPC. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finder is not an affiliate and may be compensated if you access certain products or services offered by the BD.
Up to 2% bonus on stock transfers until January 31, 2026. See full terms and conditions here.
2. Open and fund your account
Account opening requires basic personal information, employment details and financial statements. Brokers must verify your identity and assess your investment experience under regulatory requirements. The process typically takes one to three business days, but some can complete in minutes.
Most brokers require no minimum deposits. However, day trading accounts require a minimum equity of $25,000 under federal regulations. You can fund accounts through bank transfers, wire transfers or check deposits.
Account types matter Taxable brokerage accounts offer maximum flexibility for buying and selling. Tax-advantaged accounts like individual retirement accounts (IRAs) provide better long-term growth potential but restrict access to funds before retirement age.
Funding methods and timing
Bank transfers are the most common funding method. ACH transfers from your checking or savings account typically take one to three business days and cost nothing. Most brokers allow you to begin trading immediately with transferred funds, even before the transfer completes, up to certain limits.
Wire transfers provide same-day funding but cost $15 to $30 per transaction. Use wire transfers when you need immediate access to large amounts or want to meet account minimums quickly. International wire transfers cost more and take longer to process.
Mobile check deposits offer convenience but may trigger holds on funds. Small checks often clear within one business day, while larger amounts may require several days. Some brokers limit mobile deposit amounts or charge fees for this service.
Asset transfers move existing investments from other brokerages through the Automated Customer Account Transfer Service (ACATS). ACATS transfers typically take five to seven business days and may trigger fees from your old broker. Your new broker often reimburses these transfer fees for accounts above certain minimums.
Funding limits and requirements
Daily ACH transfer limits typically range from $50,000 to $100,000, though your bank may impose lower limits. Monthly limits often reach $250,000 or higher. Check both your broker’s and bank’s restrictions before planning large transfers.
Unsettled funds create trading restrictions. Cash accounts require trades to settle before reinvesting proceeds, which takes two business days for stocks. Margin accounts allow immediate reinvestment but charge interest on borrowed amounts.
Good faith violations occur when you buy stocks with unsettled funds and sell before the original purchase settles. Three violations in a rolling 12-month period restrict your account to settled funds only. Plan your initial funding to avoid these restrictions.
Funding strategy Transfer enough money initially to cover your planned purchases plus a small buffer. This prevents good faith violations and ensures you can act on investment opportunities without waiting for additional transfers to clear.
3. Research before you buy
Stock research should focus on company fundamentals, industry trends and valuation metrics. Financial statements reveal revenue growth, profit margins and debt levels. Price-to-earnings ratios help compare valuations across similar companies.
Essential research tools
Tool type
Purpose
Popular tools
Stock screeners
Find stocks based on filters like valuation or sector
Finviz, TradingView, Yahoo Finance Screener
Fundamental analysis
Analyze financial health and company performance
Morningstar, Seeking Alpha, Simply Wall St
Technical analysis
Study price charts, trends, and momentum indicators
TradingView, StockCharts
Market news & sentiment
Stay updated on news, earnings, and investor sentiment
Review official company filings and financial disclosures
EDGAR (SEC.gov), BamSEC
Portfolio management
Track and manage your investments, diversification, and risk
Personal Capital (Empower), Portfolio Visualizer
Many brokers provide free access to company financial data, analyst reports and market news. Third-party research from Morningstar, Zacks Investment Research or Seeking Alpha offers deeper analysis. SEC filings like 10-K annual reports and 10-Q quarterly reports contain unfiltered company information, but you have to be able to understand financial statements, industry jargon and regulatory language to extract meaningful insights and avoid misinterpretation.
Focus on companies you understand in industries you can evaluate. Technology stocks require different analysis than utility companies or real estate investment trusts (REITs). Diversification across sectors reduces concentration risk.
Our expert says
"You’re not confined to just one broker. If you’re between two investing platforms and can’t decide, open an account with both! This will not only let you take advantage of multiple sign-up bonuses (if available) but will also let you enjoy the benefits and features each broker has to offer."
Stock purchases require four key decisions: the stock symbol, number of shares, order type and order duration. Market orders execute immediately at current prices. Limit orders specify maximum purchase prices but may not fill if the stock price stays above your limit.
Order types explained
Market orders guarantee execution but not price. They work best for liquid stocks with tight bid-ask spreads. Limit orders control price but risk missing opportunities if stocks move higher quickly.
Stop orders become market orders once stocks reach specified trigger prices. Stop-limit orders become limit orders at trigger prices. These order types help manage downside risk but add complexity for beginning investors.
Commission-free trading eliminates the most obvious cost, but other fees remain. Bid-ask spreads represent the difference between buyer and seller prices. Wide spreads on thinly traded stocks can cost more than traditional commissions.
Regulatory fees, typically under $1 per trade, fund market oversight. Some brokers charge account maintenance fees for small balances or inactivity. International stock purchases often include currency conversion fees and foreign transaction charges.
Hidden costs to watch
Payment for order flow (PFOF) allows brokers to offer commission-free trading by directing client orders to market makers. This practice may result in slightly worse execution prices but saves direct commission costs for most retail investors. It’s what allows $0 commission trading at most brokers.
Margin interest applies if you borrow money to buy stocks. Rates typically range from 4% to 12% annually. Cash accounts avoid margin interest because they require full payment for trades with settled funds. However, sale proceeds typically settle one business day later (T+1), which may delay the ability to reinvest or withdraw immediately.
Timing and market hours
US stock markets operate weekdays from 9:30 a.m. to 4:00 p.m. ET. Extended hours trading runs from 4:00 a.m. to 9:30 a.m. and 4:00 p.m. to 8:00 p.m., but with reduced liquidity and wider spreads.
Order timing affects execution quality. Market opens and closes see higher volume and volatility. Mid-morning and mid-afternoon typically offer more stable pricing for routine purchases.
Start small and scale gradually
Your first stock purchase should represent money you can afford to lose completely. Individual stocks carry more risk than diversified funds. Starting with well-known, profitable companies in familiar industries reduces initial complexity.
Dollar-cost averaging spreads purchases over time to reduce timing risk. Buying the same dollar amount monthly, regardless of stock price, smooths out market volatility. This approach works particularly well for long-term investors building positions gradually.
Consider exchange-traded funds (ETFs) for instant diversification before concentrating in individual stocks. ETFs that track the S&P 500 or the total stock market provide broad exposure with single purchases.
Tax implications
Stocks held longer than one year qualify for lower capital gains tax rates. Frequent trading in taxable accounts generates short-term capital gains taxed as ordinary income. Keep detailed records of purchase dates and prices for tax reporting.
5. Monitor and manage your holdings
Regular portfolio review helps maintain appropriate risk levels and investment goals. Quarterly earnings reports, annual shareholder meetings and SEC filings provide ongoing company updates. Set price alerts to monitor significant movements without constant checking.
Rebalancing maintains target allocations as stock prices change. Selling winners and buying losers may go against instinct, but when done as part of a disciplined, rules-based strategy, it can promote long-term investing success. Tax-loss harvesting in taxable accounts can offset gains with losses for tax benefits.
Most successful stock investors develop systematic approaches rather than relying on market timing or stock picking. Consistent contributions, diversified holdings and long-term focus typically produce better results than frequent trading or concentrated bets.
How to buy stocks online without a broker
You need a broker to buy most stocks online, though some companies offer direct stock purchase plans.
For instance, stock transfer company, Computershare, lets you new and existing shareholders purchase stocks in companies like Nike (NKE), Coca-Cola (KO) and Walmart (WMT) directly without a broker.
Here’s how to buy stocks online without a broker using Computershare:
Go to Computershare’s US website and select Make a stock purchase.
Select a company to invest in and review that company’s direct stock purchase plan details. Select Invest Now when ready to invest.
Complete the investment details by providing the frequency of your investment, amount and withdrawal schedule. Select Next.
Enter personal information such as your name, Social Security number and contact information to create a new user profile. Select Next.
Choose your tax status, provide your bank account information and choose a dividend reinvestment frequency.
Compare brokers by available asset types, minimum deposit, stock trade fee and more. Select Go to site to sign up for an account or select View details to read our comprehensive review.
8 of 8 results
What is the Finder Score?
The Finder Score crunches 147 key metrics we collected directly from 18+ brokers and assessed each provider’s performance based on eight different categories, weighing each metric based on the expertise and insights of Finder’s investment experts. We then scored and ranked each provider to determine the best brokerage accounts.
We update our best picks as products change, disappear or emerge in the market. We also regularly review and revise our selections to ensure our best provider lists reflect the most competitive available.
Paid non-client promotion. Finder does not invest money with providers on this page. If a brand is a referral partner, we're paid when you click or tap through to, open an account with or provide your contact information to the provider. Partnerships are not a recommendation for you to invest with any one company. Learn more about how we make money.
Finder is not an advisor or brokerage service. Information on this page is for educational purposes only and not a recommendation to invest with any one company, trade specific stocks or fund specific investments. All editorial opinions are our own.
Bottom line
Buying stocks online has become accessible to any investor willing to understand the process and costs involved. Commission-free trading eliminates historical barriers, while improved platforms make research and execution straightforward. Success requires choosing the right broker for your needs, understanding order types and hidden costs and developing disciplined investment habits rather than trying to time markets or pick winners.
Many stocks are available for $100 per share. As of January 23, 2026, 184 S&P 500-listed stocks trade for under $100, according to Finviz data. With fractional share trading, you can buy slices of stocks often for as little as $1.
Matt Miczulski is an investments editor and market analyst at Finder. With over 450 bylines, Matt dissects and reviews brokers and investing platforms to expose perks and pain points, explores investment products and concepts and covers market news, making investing more accessible and helping readers to make informed financial decisions.
Before joining Finder in 2021, Matt covered everything from finance news and banking to debt and travel for FinanceBuzz. His expertise and analysis on investing and other financial topics has been featured on Yahoo Finance, CBS, MSN, Best Company and Consolidated Credit, among others. Matt holds a BA in history from William Paterson University.
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Finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which Finder receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. Finder compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
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