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How to invest in the NASDAQ

Are you ready to invest in the world's second-biggest stock exchange?

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NASDAQ building Times Square

There are over 3,300 stocks available on the NASDAQ, including many of the largest companies in the world by market capitalization. Find out which stocks are the most popular and how to get started.

How to invest in the NASDAQ

There are many ways to invest in individual stocks that are listed on the NASDAQ. To get started:

  1. Choose a broker or trading platform. All major brokers allow you to access NASDAQ stocks. But platforms set different fees and account options, so pick the one that best meets your investing needs.
  2. Open a stock trading account. Once you’ve selected which broker or platform you’d like to use, open an account to start investing.
  3. Deposit funds. In most cases, you’ll be transferring money from your bank account or sending a check. Some brokers allow you to buy and sell stocks as your initial deposit is processed, while other require you to wait until the funds clear.
  4. Buy NASDAQ stocks or exchange-traded funds (ETFs). Once your account is set up and funded, begin buying and selling the stocks listed on the NASDAQ or the ETFs that track it.

Invest in all or parts of the NASDAQ

If you want to invest in the NASDAQ as a whole, you can buy an ETF fund that tracks the performance of the entire NASDAQ index, an ETF that tracks just the top 100 NASDAQ stocks or an ETF that tracks certain sectors within the NASDAQ.

These ETFs are based on the NASDAQ Composite index (IXIC), which tracks all NASDAQ-listed stocks, or the NASDAQ-100 index (NDX). which tracks a subset of the top 100 non-financial stocks on the NASDAQ.

NASDAQ Composite ETFs
  • Fidelity Nasdaq Composite Tracking Stock (ONEQ)
NASDAQ-100 ETFs
  • PowerShares QQQ (QQQ): An ETF that weights the 100 stocks by their market cap.
  • ProShares Short QQQ (PSQ): An inverse ETF that weights the 100 stocks by their market cap.
  • ProShares Ultra QQQ (QLD): A 2x leveraged ETF based on the market cap-weighted NASDAQ-100.
  • ProShares UltraShort QQQ (QID): An inverse 2x leveraged ETF based on the market cap-weighted NASDAQ-100.
  • ProShares UltraPro QQQ (TQQQ): A 3x leveraged ETF based on the market cap-weighted NASDAQ-100.
  • ProShares UltraPro Short QQQ (SQQQ): An inverse 3x leveraged ETF based on the market cap-weighted NASDAQ-100.
NASDAQ sector ETFs
  • iShares NASDAQ Biotechnology ETF (IBB): A market cap-weighted index of NASDAQ-listed biotechnology and pharmaceutical stocks.
  • ProShares Ultra NASDAQ Biotech (BIB): A 2x leveraged ETF based on a market cap-weighted index of NASDAQ-listed biotechnology and pharmaceutical stocks.

Invest in specific NASDAQ stocks

There are thousands of stocks available on the NASDAQ, but some of the more popular options include:

Invest in the company that runs the NASDAQ

Nasdaq (NDAQ) is the holding company that runs the world’s second-largest stock exchange, lists the companies that join the NASDAQ and provides information about the stocks listed on the exchange, including through its website, Nasdaq.com.

Is the NASDAQ a good investment?

That depends on how it performs. As with all investing, there is risk. The NASDAQ lists all kinds of companies, but it’s best known for its abundance of technology stocks. Over the past two decades, the NASDAQ 100 index has outperformed the S&P 500 index.

Based in New York City, the NASDAQ stock market is the world’s second-largest stock exchange by market capitalization after the New York Stock Exchange. It’s the home of some of the most globally renowned companies — including Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), Facebook (FB), Google’s parent company Alphabet (GOOG and GOOGL) and Netflix (NFLX) — and the growth of the whole index reflects that.

The NASDAQ also offers high liquidity and trading options for its more than 3,300 listed stocks.

Compare platforms to trade NASDAQ stocks

Name Product Available asset types Stock trade fee Option trade fee Annual fee
Vanguard
Stocks,Mutual funds,ETFs,Forex
$0
$1
$20 per year
Get a personal advisor when you open an account with at least $50,000.
Robinhood
Stocks,Options,ETFs,Cryptocurrency
$0
$0
0%
Make unlimited commission-free trades in stocks, funds, and options with Robinhood Financial.
Interactive Brokers
Stocks,Bonds,Options,Mutual funds,Index funds,ETFs,Forex,Futures,Cash
$0
$0 + $0.65/contract, $1 minimum
0%
IBKR Lite offers $0 commissions, and IBKR Pro offers advanced tools for professional traders.
Tastyworks
Stocks,Options,ETFs,Futures
$0
Stocks & ETFs: $1/contract to open, $0 to close, $10 max/leg
Futures: $2.50/contract to open, $0 to close
0%
Trade stocks, options, ETFs and futures on mobile or desktop with this advanced platform.
M1 Finance
M1 Finance
Stocks,ETFs
$0
$0
0%
A robo-advisor that puts you in the driver’s seat with fully-customizable portfolios.
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Compare up to 4 providers

How much does it cost to invest in the NASDAQ?

Most brokers and trading platforms don’t charge you a commission on every stock trade, so you can often invest very little money in NASDAQ stocks or a NASDAQ index ETF. However, it’s still important that you understand the fee structure of each platform before using it to trade. Certain brokers or platforms attract different types of investors. Depending on your investing strategy, you could pay other fees.

NASDAQ trading hours

The NASDAQ is open during regular US market hours, which are weekdays from 9:30 a.m. to 4 p.m.

Bottom line

Whether you want to trade the whole index, its top 100 stocks, its biotech stocks or any company listed on the world’s second-largest stock exchange, the NASDAQ gives you those options. But consider your investing goals and compare your trading platform options before you put your money into the market.

Disclaimer: The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

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