I wrote How to Sign Up for a Fidelity Brokerage Account around July.
Now, it’s time to buy a stock! In this article, you’ll learn how to buy a stock at Fidelity.
Note: Fidelity is a US stockbroker, founded in 1946. It is one of the most well-rounded brokerages with no commissions on stock, ETF or options trades, and a selection of no-expense-ratio index funds.
Step 1. Pick Stocks & Find Symbols
There are a lot of stocks out there. You need to pick one at first. If you have no idea where to start, check Berkshire Hathaway’s portfolio here.
Warren Buffett is one of the most successful investors of all time and he runs this Berkshire Hathaway. I’m not suggesting to buy the same stocks that Warren Buffett hold. I’m just saying learn from successful people is a good start (:
Once you’ve picked one, find symbols.
Step 2. Now, Login to Your Account
If you haven’t created Fidelity Brokerage Account, read here. If you have Fidelity Brokerage Account, log in to your account and mouseover “Account & Trade.” Under the “Account & Trade,” click “Portfolio.”
Step 3. Place Order
In the portfolio page, you’ll see “Trade” button on the top left side. Click it.
Step 4. Enter Symbol
You’ll see order form on the screen now. Let’s assume that you are going to buy Kroger stock. Enter Kroger stock symbol (KR) into the symbol field.
After you enter the symbol, you’ll see current a stock price.
Step 5. Enter Quantity
You are going to buy a stock, so action will be “Buy.” Enter the number of shares you want to purchase in the quantity field.
Order type has two option, “Market Order” and “Limit Order.” For beginner, I strongly recommend to use “Market Order” because it’s the basic. In the “Time in Force” section, pick “Day.” Lastly, click “Preview Order.”
Step 6. Confirm Your Purchase
Last step! You’ll see a preview of your order including the current price of the stock, how many shares you will buy, and the estimated total cost. If you agree with it, click “Place Order.” That’s all! You are now investor.
Note: Bid mean people who want to buy a stock with the price, Ask mean people who want to sell a stock with the price at the moment.
If you have any questions, feel free to call Fidelity Customer Service. I often use Fidelity Live Chat customer service.
My first stock purchase was $550. (same as designer handbag) I wasn’t going to make money at the time. I wanted to learn how does stock trading work. $550 was good investment for real experience!