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 a few 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).
You need two things before you can buy: an E*TRADE brokerage account that is already open and funded with cash, and the ticker symbol of the stock you want to buy. The ticker is a short code — Apple is AAPL, Microsoft is MSFT, Tesla is TSLA. If you do not know the ticker, E*TRADE's search tool will find it when you type the company name.
Key Takeaways
- You must have cash in your E*TRADE account before you can buy stock; the money sits in your cash balance until you place an order.
- Stock orders on E*TRADE execute during market hours (9:30 a.m. to 4 p.m. Eastern Time, Monday through Friday), and orders placed outside those hours will wait until the market opens.
- A market order buys at the current price when ready, while a limit order lets you set a maximum price you are willing to pay and waits for that price to appear.
- E*TRADE charges no commission on stock trades, but the bid-ask spread (the difference between what buyers offer and what sellers ask) is a real cost you pay at the moment of purchase.
- Once your order fills, the shares appear in your account and you own them; you can hold them, sell them, or receive dividends if the company pays them.
Funding your E*TRADE account before you buy
Your E*TRADE account has a cash balance, separate from any money you keep in a linked bank account. To buy stock, that cash balance must have enough money to cover the purchase. If your cash balance is zero, you cannot buy anything until you transfer money in.
You can fund your account by linking a bank account and transferring money electronically, or by depositing a check through the mobile app. Electronic transfers usually take one to three business days to arrive. Once the money is in your cash balance, it is ready to use when ready — you do not have to wait for a second settlement period.
How to search for and select a stock
Log into your E*TRADE account and look for the trade or invest section. You will see a search box where you can type either the company name or the ticker symbol. If you type "Apple," E*TRADE will show you AAPL and other results; if you type "AAPL," it will take you straight to Apple's stock page.
The stock page shows you the current price, the day's high and low, volume (how many shares traded today), and a chart of recent price movement. This is where you confirm you have found the right company before you place an order. Take a moment to double-check the ticker symbol and the company name — buying the wrong stock by mistake is straightforward and costs real money to fix.
Choosing between a market order and a limit order
E*TRADE offers two main order types for stock purchases. A market order buys when ready at whatever the current market price is. If the stock is trading at $150, your market order will execute at or very close to $150. Market orders fill fast, usually within seconds, but you do not control the exact price.
A limit order lets you set a maximum price you are willing to pay. If you want to buy Apple at $145 but it is currently $150, you can place a limit order for $145. The order waits in the market until the price drops to $145 or lower, then executes automatically. If the price never reaches your limit, the order never fills and you own no shares. Limit orders give you price control but no may provide the trade will happen.
For most people buying stock for the first time, a market order is simpler — you see the price, you buy at that price, and it is done. Limit orders are useful if you are willing to wait and want to avoid overpaying during a price spike.
Entering the order and reviewing before you submit
After you choose your order type, E*TRADE asks you how many shares you want to buy. Enter the number and E*TRADE will calculate the total cost (share price times number of shares). This is where you catch mistakes — if you meant to buy 10 shares but typed 100, you will see the cost is ten times higher than you expected.
E*TRADE shows you a review screen with all the details: the stock symbol, the number of shares, the order type (market or limit), and the estimated cost. Read this screen carefully. Once you click submit or confirm, the order goes to the market and you are committed to the purchase. If you spot an error, go back and fix it before submitting.
What happens after your order is submitted
If you placed a market order during market hours, it usually fills within seconds. E*TRADE will show you a confirmation with the exact price you paid per share, the total cost, and the number of shares you now own. The shares appear in your account when ready, and your cash balance decreases by the amount you spent.
If you placed an order outside market hours (before 9:30 a.m. or after 4 p.m. Eastern Time, or on weekends and holidays), the order waits in a queue and executes when the market opens. You will see the order status as "pending" until it fills. If you placed a limit order, it may wait for hours, days, or indefinitely until the price reaches your limit.
Once the order fills, you own the shares outright. You can hold them as long as you want, sell them at any time during market hours, or receive dividends if the company pays them to shareholders. E*TRADE tracks your shares, their current value, and your gain or loss compared to what you paid.
Understanding the real costs of buying stock
E*TRADE charges no commission on stock trades — you will not see a separate fee added to your purchase. However, there is a real cost built into every trade called the bid-ask spread. The bid is what buyers offer to pay; the ask is what sellers want to receive. When you buy, you pay the ask price (the higher one). The difference between the bid and ask is the spread, and it goes to market makers, not to E*TRADE.
For large, popular stocks like Apple or Microsoft, the spread is usually just a few cents per share. For smaller or less-traded stocks, the spread can be much wider — sometimes 50 cents or more per share. This spread is a real cost you pay at the moment you buy, even though you will not see it as a line item on your receipt.
Frequently Asked Questions
Can I buy stock if my account is not fully funded yet?
No. You must have enough cash in your account to cover the purchase before you place the order. If your transfer is still pending, you cannot buy. Once the money arrives in your cash balance, it is ready to use when ready.
What if I place an order after the market closes?
Your order will wait in a queue and execute when the market opens the next trading day. If you placed a market order, it will fill at the opening price (which may be different from the previous day's closing price). If you placed a limit order, it will wait until the price reaches your limit or the order is canceled.
Can I cancel an order after I submit it?
Yes, but only if it has not filled yet. If your order is still pending or waiting, you can cancel it through your E*TRADE account. Once the order fills and you own the shares, you cannot undo the purchase — you would have to sell the shares separately if you change your mind.
Do I have to pay taxes on stock I buy?
You do not pay taxes on the purchase itself. You pay taxes on the profit when you sell the stock for more than you paid, or on dividends if the company pays them. E*TRADE will send you tax documents at the end of the year showing your gains, losses, and dividends.
What is the difference between buying stock and buying a mutual fund on E*TRADE?
When you buy individual stock, you own shares of one company. When you buy a mutual fund or exchange-traded fund (ETF), you own a small piece of many companies at once. Mutual funds and ETFs are useful if you want when ready diversification without researching individual stocks.