The basic steps to buy stock on E*TRADE

To buy stock on E*TRADE, you log into your account, search for the stock by its ticker symbol, enter how many shares you want, choose your order type, and submit. The whole process takes about two minutes once your account is funded. E*TRADE will show you the current price, let you review the order before it goes through, and then execute the trade during market hours (9:30 a.m. to 4 p.m. Eastern Time on weekdays).

Before you can buy anything, your E*TRADE account needs cash in it. You can transfer money from your bank account, deposit a check by phone or mail, or wire funds. Most bank transfers take one to three business days to show up in your account.

Key Takeaways

  • You need a funded E*TRADE account and the stock's ticker symbol (a short code like AAPL for Apple) to place an order.
  • E*TRADE shows you the real-time price and lets you review your order before it executes, so you see exactly what you are buying and at what price.
  • Market orders execute when ready at the current price during trading hours; limit orders only execute if the price hits the level you set.
  • Your order settles two business days after you place it, meaning the shares appear in your account and your cash is deducted on that settlement date.

Finding the stock you want to buy

On the E*TRADE website or mobile app, look for a search box or "Trade" tab. Type the company name or its ticker symbol — for example, "Tesla" or "TSLA". E*TRADE will show you a list of matching results. Click on the one you want. The stock detail page will show you the current price, a price chart, company information, and news.

If you are not sure of the ticker symbol, you can search by company name and E*TRADE will suggest matches. Once you find the right stock, click the "Trade" or "Buy" button to move to the order screen.

Choosing between a market order and a limit order

A market order buys the stock at whatever the current price is right now. If the stock is trading at $150 per share and you place a market order for 10 shares, you will pay $1,500 (plus any commission, though E*TRADE does not charge commissions on stock trades). Market orders execute almost when ready during market hours, usually within seconds.

A limit order lets you set the highest price you are willing to pay. If you set a limit order to buy at $145 per share and the stock is currently $150, your order will wait. It will only execute if the price drops to $145 or lower. Limit orders can take hours, days, or never execute at all if the price never reaches your limit. Use a limit order when you want to control your cost or when the market is closed and you want to set a price for when it opens.

For your first stock purchase, a market order is simpler because it executes right away and you know the price before you confirm. A limit order is useful once you are more comfortable and want to be selective about the price you pay.

Entering the number of shares and reviewing your order

On the order screen, enter how many shares you want to buy. E*TRADE will show you the total cost in real time. For example, if you enter 10 shares and the stock is $150, you will see $1,500 as the total. Make sure you have enough cash in your account to cover it.

Before you submit, E*TRADE shows you a review screen with all the details: the stock name and ticker, the number of shares, the price per share, the total cost, and the order type (market or limit). Read this screen carefully. If anything looks wrong, go back and fix it. Once you click "Submit" or "Place Order", the trade is sent to the market.

What happens after you place the order

During market hours (9:30 a.m. to 4 p.m. Eastern Time, Monday through Friday), your order executes almost when ready if it is a market order. You will see a confirmation message with an order number. E*TRADE will also send you an email confirmation.

The shares do not appear in your account right away. Stock trades settle two business days after you place the order. Settlement is when the shares officially become yours and the cash is deducted from your account. So if you buy on a Monday, the shares settle on Wednesday. If you buy on a Friday, they settle on Tuesday (because the market is closed on weekends).

You can see your pending order in the "Orders" or "Activity" section of your E*TRADE account. Once settlement is complete, the shares move to your "Positions" or "Holdings" section, and you own them.

Placing an order outside market hours

If you try to place a market order when the market is closed (before 9:30 a.m., after 4 p.m., or on weekends), E*TRADE will ask if you want to place it as an after-hours order or wait until the market opens. After-hours trading happens from 4 p.m. to 8 p.m. Eastern Time, but prices can be much wider and less reliable than during regular hours. For a first purchase, it is usually better to wait for the market to open so you get a fair price.

If you place a limit order outside market hours, it will wait and execute whenever the price hits your limit, even if that happens after hours or the next day.

Common mistakes to avoid

The most common mistake is not having enough cash in your account. If you try to buy 100 shares at $150 each ($15,000 total) but only have $10,000, the order will be rejected. Check your available cash balance before you place the order.

Another mistake is confusing the ticker symbol. Make sure you are buying the stock you actually want — for example, there are many companies with similar names, and the ticker symbol is the only way to be sure. Take a few seconds to verify the company name and ticker before you submit.

A third mistake is placing a market order when the market is about to close. If you place a market order at 3:59 p.m., it may execute at a very different price than what you see on screen, because prices can move in the last minute of trading. If you are unsure, use a limit order or wait until the next trading day.

Frequently Asked Questions

Do I have to pay a commission to buy stock on E*TRADE?

No. E*TRADE does not charge a commission on stock trades. You pay only the price of the stock itself. Some other costs may explore in certain situations — for example, if you trade options or if you trade stocks on certain international exchanges — but regular stock purchases on U.S. exchanges have no commission.

What is the difference between a ticker symbol and a company name?

A ticker symbol is a short code that uniquely identifies a stock. Apple's ticker is AAPL, Microsoft's is MSFT, and Tesla's is TSLA. Company names can be similar or change, but the ticker symbol never does. Always search by ticker symbol if you know it, because it is the most reliable way to find the exact stock you want.

Can I buy a fraction of a share on E*TRADE?

Yes. E*TRADE allows you to buy fractional shares, meaning you can buy 0.5 shares or 2.3 shares instead of only whole numbers. This is useful if you want to invest a specific dollar amount but the stock price is very high. For example, if a stock costs $500 per share and you have $250, you can buy 0.5 shares.

What if I want to cancel my order before it executes?

If your order has not executed yet, you can cancel it from the "Orders" section of your account. Click the order and select "Cancel". If the order has already executed, you cannot cancel it, but you can sell the shares later. Cancellations are usually when ready during market hours.

How much money do I need to start buying stock on E*TRADE?

E*TRADE does not have a minimum deposit to open an account, but you need enough cash to buy at least one share of the stock you want. Stock prices vary widely — some stocks cost $10 per share, others cost $500 or more. You also need to have that cash in your account before you place the order.