How to Buy Stocks Online in 2025 – A Step-By-Step Beginner’s Guide

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.

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.

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	MarketWatch, Bloomberg, Quiver Quant, Reddit (r/stocks), Twitter/X
Earnings & SEC filings	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."

Matt Miczulski

Investments editor

4. Execute your first trade

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.

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.

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.

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.

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.

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:

1. Go to Computershare’s US website and select Make a stock purchase.
2. Select a company to invest in and review that company’s direct stock purchase plan details. Select Invest Now when ready to invest.
3. Complete the investment details by providing the frequency of your investment, amount and withdrawal schedule. Select Next.
4. Enter personal information such as your name, Social Security number and contact information to create a new user profile. Select Next.
5. Choose your tax status, provide your bank account information and choose a dividend reinvestment frequency.
6. Review your information and submit

Compare more online stock trading platforms

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.

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Product	Finder Score	Available asset types	Stock trade fee	Minimum deposit	Cash sweep APY	Offer
Promoted Finder score 9 Excellent SoFi Invest®	Finder score 9 Excellent	Stocks, Options, Mutual funds, ETFs, Alternatives	$0	$0	0.01%	Get up to $1,000 in stock when you open and fund a new account. T&C apply.	Trade stocks, ETFs, and options with zero commissions, invest in IPOs or automate your portfolio, with exclusive perks available through SoFi Plus.	Go to site More info	loading
Promoted Finder score 9 Excellent Wealthfront	Finder score 9 Excellent	Stocks, ETFs, High-yield cash account	$0	$500	4.00%	Get a $50 bonus when you sign up and fund a taxable automated investing account with at least $500.	Automate your stock and bond portfolio or trade individual stocks for as little as $1 apiece. Plus, earn 4% APY on your cash.	Go to site More info	loading
Promoted Finder score 9 Excellent Public.com	Finder score 9 Excellent	Stocks, Bonds, Options, ETFs, Cryptocurrency, Investments, Retirement, Treasury Bills, High-yield cash account	$0	$0	4.1%	Get up to $10,000 and transfer fees covered when you move your portfolio to Public.	Build a diversified portfolio of stocks, bonds, options, ETFs and crypto, with a high-yield cash account and options contract rebates.	Go to site More info	loading
Finder score 7.2 Great OPTO	Finder score 7.2 Great	Stocks, ETFs	$0	$0	4%	Earn up to $300 when you deposit between $2,000–$25,000+.	Copy top-performing portfolios or build your own stock index on Opto's AI-driven thematic investing platform, and get 4% APY on your cash.	Go to site More info	loading
Finder score 9.2 Excellent Interactive Brokers GlobalTrader	Finder score 9.2 Excellent	Stocks, Options, Mutual funds, ETFs, Cryptocurrency	$0	$0	3.83% Lite 4.83% Pro	Trade in a simulated trading environment and access a wide range of tradable assets.	Go to site More info	loading
Finder score 8.2 Great eToro	Finder score 8.2 Great	Stocks, Options, ETFs, Cryptocurrency, Futures, Investments	$0	$0	3.9%	No commission stock, ETF and options trades, with 3.9% interest on your options account balance and no options contract fees. See full disclosure.	Go to site More info	loading
Finder score 9.4 Excellent Webull	Finder score 9.4 Excellent	Stocks, Bonds, Options, ETFs, Futures, Money market funds	$0	$0	Up to 8.10%	Trade stocks, ETFs and equity options commission-free, with access to futures, advanced charting tools, a robo-advisor and event trading powered by Kalshi.	Go to site More info	loading
Finder score 8.2 Great Zacks Trade	Finder score 8.2 Great	Stocks, Bonds, Options, Mutual funds, ETFs, CDs	$0.01	$250	2.83%	Get up to $1,000 when you open and fund an account. Terms apply.	Leverage powerful trading tools and low margin rates to trade stocks, options, ETFs, mutual funds and bonds.	Go to site More info	loading
Finder score 9.4 Excellent Robinhood	Finder score 9.4 Excellent	Stocks, Options, ETFs, Cryptocurrency, Futures, Event contracts, High-yield cash account	$0	$0	4%	Get a free stock when you successfully sign up and link your bank account.	Trade stocks, options, crypto and more, with advanced trading tools, fractional shares and exclusive perks for Gold members.	Go to site More info	loading
Finder score 8 Great Acorns	Finder score 8 Great	Stocks, ETFs	$0	$0	N/A	Get a $20 bonus when you set up an account and make your first recurring investment (min. $5).	Automate investing with recurring contributions starting at $5 and invest spare change from everyday purchases.	Go to site More info	loading
Finder score 7.4 Great Stash	Finder score 7.4 Great	Stocks, ETFs	$0	$0	0.1%	Get $5 when you sign up and deposit $5.	Bank, automate your portfolio or invest in individual stocks and ETFs for as low as $3 per month.	Go to site More info	loading

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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 nine 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.

Read the full Finder Score breakdown

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.

Ready to compare your options? Find the best stock trading platform for your needs and start building your investment portfolio.

Frequently asked questions

Can I buy stocks with $100?

Many stocks are available for $100 per share. As of June 9, 2025, 212 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.

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