
- Trade stocks, options, ETFs, mutual funds, alternative asset funds
- $0 commission on stocks, ETFs and options with no options contract fees
- Get up to $1,000 in stock when you open and fund a new account within 30 days
- Access to a financial planner
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.
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:
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.
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 |
App-first discount brokers | SoFi Invest, Robinhood, Webull | $0–$1 | Mobile-focused or tech-savvy investors | Limited research tools and services |
Full-service brokers | Edward Jones, Morgan Stanley, Merrill Lynch, UBS | 0.1%–2.5%(2),(3),(4) | 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.
Compare our top three broker picks side by side. Select the Go to Site button for more information about a particular exchange.
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.
Funding methods and timing
Funding limits and requirements
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 | 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.
"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.
Order type | Execution | Price control | Best use |
---|---|---|---|
Market | Immediate | None | Liquid stocks, urgent trades |
Limit | Conditional | Maximum price | Volatile stocks, patient buyers |
Stop-Loss | Triggered | Minimum sale price | Risk management |
Understand the costs
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.
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.
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:
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.
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.
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.
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.
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