How to Buy Stocks on Fidelity: A Comprehensive Guide (2024)
In this detailed guide, we will walk you through the process of buying stocks on Fidelity, ensuring you make informed decisions and invest your hard-earned money wisely. Whether you are a new investor or looking to refine your trading strategy, this step-by-step tutorial will provide you with the tools and knowledge you need to navigate the world of stock trading efficiently.
Step 1: Picking the Stock to Buy
Before you begin, ensure you have already set up a Fidelity taxable brokerage account and deposited funds into it. In taxable accounts, it's recommended to invest in index exchange-traded funds (ETFs) due to their tax efficiency. If you're following a simple three-fund or similar index fund portfolio strategy, here are some ETF ticker symbols you might prefer:
S&P 500: VOO (Expense Ratio: 0.03%)
Total Stock Market: VTI (Expense Ratio: 0.03%)
U.S. Bonds: BND (Expense Ratio: 0.04%)
International Stocks: VXUS (Expense Ratio: 0.08%)
International Bonds: BNDX (Expense Ratio: 0.08%)
Real Estate: FREL (Expense Ratio: 0.08%)
These ETFs provide broad exposure to various asset classes, making them a solid choice for diversified portfolios.
Step 2: Entering Your Order
Log In and Click "Trade": Begin by logging into your Fidelity account and clicking on the "Trade" button in the top left corner.
Market Trading Hours: Regular market trading hours are from 9:30 am to 4:00 pm. To minimize volatility, consider trading during periods when the market is less turbulent.
Transaction Type: Choose "Stocks/ETFs."
Enter the Ticker Symbol: Input the ticker symbol of the ETF you wish to purchase, such as IVV (iShares S&P 500 ETF).
Action: Select "Buy" to indicate that you want to buy shares.
Quantity: Specify the number of shares you want to purchase. Keep in mind that you can only purchase whole numbers of shares. Divide the amount you wish to invest by the current stock price to calculate the number of shares to buy.
Order Type: You have two primary options: "Market Orders" and "Limit Orders." For beginners, market orders are recommended. They execute instantly, simplifying the process.
Time In Force: Choose "Day" for this option, as your trade will be executed almost immediately with market orders.
Your order should resemble the one shown above. This straightforward approach ensures a smooth and efficient buying process.
Step 3: Review Your Order
Before confirming your order, review the details, including the current stock/ETF price, the number of shares to purchase, and the estimated order value.
Step 4: Submit Your Order
Congratulations! You've successfully executed your first trade. To access the order confirmation, navigate to the "Activity/Confirmation" tab.
Don't hesitate to reach out to Fidelity Customer Service if you have any questions. They can provide assistance, but ensure you personally execute the trade online to avoid potential large commission fees associated with phone orders.
In conclusion, online trading need not be intimidating. By following these simple steps and leveraging the benefits of ETFs, you can make well-informed investment decisions and take control of your financial future. Whether you prefer ETFs or mutual funds, market or limit orders, this guide has provided you with a straightforward approach to buying stocks on Fidelity. So, go ahead, seize the opportunity to grow your wealth through informed investing.
I have always been interested in working in the financial industry and I believe that fidelity.com would be a great place to start my career. The company has a great reputation and I would love to be a part of a team that is helping people save for their future.
In most situations, you will find what you need at Fidelity. There are a few downsides. Fidelity does not offer cryptocurrency investing. The company is also missing some features found on other investment platforms, like futures trading and paper trading, where you can practice trading.
Is Fidelity good for beginners? Fidelity is a great option for beginners, especially since it provides a wealth of educational tools to help new investors get started. It also offers low costs which are especially beneficial to new investors.
Based on our scoring methodology, Fidelity is a broker that we can recommend for beginners. Let's take a look at its services one by one, following the criteria we set above, to get the whole picture. 💻 When it comes to its web platform, Fidelity might suit the needs of beginners: User-friendly. Clear fee report.
Fidelity is an ethical principle that pertains to trustworthiness. Practicing fidelity includes creating and maintaining trust in relationships. Fidelity also means that commitments and promises are fulfilled.
"Savvy investors understand the importance of keeping your costs low and your options open, and Fidelity funds have become popular because they offer just that," Latham says. "With no sales loads, low fees and no minimum investment requirements, it's easier to start investing without breaking the bank."
While Fidelity wins out overall, Vanguard is the best option for retirement savers. Its platform offers tools and education focused specifically on retirement planning.
Our Take. Fidelity remains our top overall choice for best online broker as well as our choice as the best broker for low costs and for ETFs this year. In addition, Fidelity earned top ranks as the best broker for cash management, which are new additions to our best online broker and trading platforms awards this year.
A stock portfolio focused on dividends can generate $1,000 per month or more in perpetual passive income, Mircea Iosif wrote on Medium. “For example, at a 4% dividend yield, you would need a portfolio worth $300,000.
What's the right number of companies to invest in, even if portfolio size doesn't matter? “Studies show there's statistical significance to the rule of thumb for 20 to 30 stocks to achieve meaningful diversification,” says Aleksandr Spencer, CFA® and chief investment officer at Bogart Wealth.
Get the best possible price, even if it is a good stock. Pinch pennies on brokerage costs and reduce your opportunity cost to the bare minimum. Becoming an absolute penny pincher does a world of good to your investment success. Smart investors don't buy stocks, they buy the underlying businesses.
Fidelity is one of the most well-rounded brokerages available today, with no commissions on stock or ETF trades and a selection of no-expense-ratio index funds suited to both beginner and active investors.
We offer domestic and international stocks, real estate investment trusts, initial public offerings, and more. All online US stock trade commissions are $0.
However, Fidelity offers fractional shares, letting you invest with literally as little as $1. And unlike some trading firms that offer fractional shares only on a limited list of investments, at Fidelity you can buy fractional shares of more than 7,000 US stocks and ETFs.
Introduction: My name is Trent Wehner, I am a talented, brainy, zealous, light, funny, gleaming, attractive person who loves writing and wants to share my knowledge and understanding with you.
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