The basic process: fund your account, search for a stock, and place a buy order

To buy stock on E*TRADE, you log into your account, deposit money, find the stock you want using its ticker symbol, enter how many shares you want to buy, and confirm the order. The stock settles in your account two business days later. The entire process from login to confirmation takes about five minutes once your account is funded.

E*TRADE handles the order through the stock exchange — you do not need to contact anyone or wait for approval. Your order executes during market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays) at the price shown when you submit it, or as close to that price as the market allows.

Key Takeaways

  • You must have cash in your E*TRADE account before you can buy stock; you can deposit money by bank transfer, wire, or check.
  • Stock orders placed during market hours execute the same day; orders placed outside market hours execute when the market opens the next trading day.
  • Your stock settles (officially becomes yours) two business days after the order executes, but you can sell it when ready after purchase if you choose.
  • E*TRADE charges no commission on stock trades, but the price you pay includes the bid-ask spread, which varies by stock.

Funding your account before you buy

E*TRADE requires cash in your account before you place a buy order. You can deposit money three ways: electronic bank transfer (takes one to three business days), wire transfer (same day or next day, but costs $10 to $15), or mailing a check (takes five to seven business days).

To start a bank transfer, log into your E*TRADE account, go to the Accounts section, select Deposit Funds, and choose Bank Transfer. E*TRADE will ask for your bank's routing number and your account number. The first transfer from a new bank account may take longer while E*TRADE verifies the account.

Once the money appears in your account, it is available to trade when ready. You do not need to wait for the deposit to fully clear.

Finding and selecting the stock you want to buy

On the E*TRADE website or mobile app, go to the Trade section and select Stock. Enter the stock's ticker symbol — a one- to five-letter code that identifies the company. For example, Apple's ticker is AAPL, Microsoft is MSFT, and Tesla is TSLA. If you do not know the ticker, type the company name and E*TRADE will show you matching results.

E*TRADE displays the stock's current price, the bid price (what buyers are offering), the ask price (what sellers are asking), and the bid-ask spread (the difference between them). The spread is how E*TRADE and other brokers make money on stock trades — you pay the ask price when you buy and receive the bid price when you sell.

Click on the stock to open its detail page. You will see charts, news, analyst ratings, and company information. None of this changes your ability to buy — it is there to help you decide whether you want to own the stock.

Entering your buy order and choosing order type

Click the Buy button on the stock detail page. E*TRADE opens an order form where you enter the number of shares you want to buy. The form shows the current ask price and calculates the total cost (number of shares × ask price). Review this total to make sure you have enough cash in your account.

Next, choose your order type. A market order buys the stock when ready at the current market price — this is the default and most common choice for individual investors. A limit order lets you set a maximum price you are willing to pay; the order only executes if the stock drops to that price or lower. Limit orders can take days or weeks to execute, or may never execute if the stock never reaches your price.

For a market order, E*TRADE also asks when you want the order to expire: Good for Day (expires at the end of today's trading session) or Good Till Cancelled (stays active for up to 60 days). Most investors use Good for Day.

Reviewing and confirming your order

Before you submit, E*TRADE shows you a summary: the stock ticker, the number of shares, the order type, the estimated cost, and any fees. E*TRADE charges no commission on stock trades, so the only cost is the stock price itself plus the bid-ask spread.

Check that the number of shares is correct — it is straightforward to mistype. Check that you have enough cash in your account to cover the total. Then click Confirm or Submit Order.

E*TRADE sends your order to the stock exchange. If you placed the order during market hours (9:30 a.m. to 4 p.m. Eastern, Monday through Friday), it executes within seconds to minutes. If you placed it outside market hours or on a weekend, it waits until the market opens the next trading day.

What happens after your order executes

Once your order executes, E*TRADE sends you a confirmation with the execution price (the actual price you paid, which may differ slightly from the ask price you saw), the number of shares, the total cost, and the settlement date. The settlement date is always two business days after the order executes.

Until settlement, the stock appears in your account as "unsettled" — you own it and can sell it, but you cannot withdraw the cash value. After settlement, the stock is fully yours and you can do anything with it: hold it, sell it, or use it as collateral for a margin loan.

E*TRADE sends you a monthly statement showing all your trades, holdings, and account value. You can also check your holdings anytime by logging in and viewing your portfolio.

Understanding bid-ask spread and market hours

The bid-ask spread is the gap between what buyers are willing to pay (bid) and what sellers are asking (ask). When you buy, you pay the ask price. When you sell, you receive the bid price. The spread varies by stock: large, popular stocks like Apple have tight spreads (sometimes just a penny), while smaller or less-traded stocks have wider spreads (sometimes 10 cents or more).

The spread is not a fee — it is straightforward the cost of buying and selling at market prices. E*TRADE does not set the spread; the market does. During market hours, spreads are usually tighter because more buyers and sellers are trading. Outside market hours, spreads widen because fewer people are trading.

Regular market hours are 9:30 a.m. to 4 p.m. Eastern time, Monday through Friday. E*TRADE also offers extended-hours trading (pre-market from 7 a.m. to 9:30 a.m. and after-hours from 4 p.m. to 8 p.m.), but spreads are wider and prices are less predictable during these times.

Frequently Asked Questions

Can I buy stock with money that is still being deposited?

No. You can only buy stock with cash that is already in your account. If you have a deposit in progress, you must wait for it to arrive before you can trade. Wire transfers and bank transfers both take at least one business day.

What if I want to buy a stock but the price keeps changing?

Use a limit order to set a maximum price you are willing to pay. The order will only execute if the stock drops to your price or lower. Keep in mind that limit orders can take days to execute, or may never execute if the stock never reaches your price.

Can I cancel an order after I submit it?

Yes, but only if it has not executed yet. Once the order executes, you own the stock and cannot cancel it — you can only sell it. To cancel a pending order, log into your account, find the order in your order history, and click Cancel.

Do I have to pay taxes on stock I buy?

You do not pay taxes when you buy stock. You pay capital gains tax only when you sell the stock at a profit. E*TRADE sends you a tax form (Form 1099) at the end of the year showing your gains and losses.

What is the difference between a market order and a limit order?

A market order buys the stock when ready at the current market price. A limit order lets you set a maximum price and only buys if the stock reaches that price. Market orders execute fast but at an unpredictable price. Limit orders give you price control but may not execute at all.