To buy stocks, follow these basic steps:
- Open an investment account with an online broker (such as Robinhood, Fidelity, Charles Schwab, or others). This typically involves providing personal information and linking a bank account.
- Deposit funds into your brokerage account.
- Research the stocks you want to buy.
- Decide how many shares to purchase. Many brokers allow buying fractional shares if you want to invest smaller amounts.
- Use your broker's platform to place an order. Basic order types include market orders (buy immediately at current price) and limit orders (buy at or below a specific price).
- Review and confirm the trade.
- After the trade executes, the stocks will be held in your brokerage account.
You can buy stocks directly through some companies' direct stock purchase plans or through dividend reinvestment plans, but most individual investors use brokers for convenience and a wider selection of stocks. Online brokers now make buying stocks easy and accessible with low fees, tools for research, and the option to start investing with small amounts of money.