How to Buy Stock on Fidelity

Buying stocks has become a common method for individuals looking to invest in the stock market and build their personal wealth. Fidelity, one of the leading brokerage platforms, offers a robust and comprehensive system for purchasing stocks. Navigating this platform might seem daunting at first, especially for beginners, but with guidance, buying stock on Fidelity can be a straightforward process.

Understanding Fidelity's Platform

Fidelity provides a wide array of investment options including stocks, mutual funds, ETFs (Exchange-Traded Funds), and bonds. It stands out due to its low-cost trading, advanced research tools, and excellent customer service. To buy stock on Fidelity, you'll first need to have a brokerage account with them.

Steps to Buy Stock on Fidelity

1. Open a Fidelity Brokerage Account

To start buying stocks, you need to first open a brokerage account if you don't already have one. Follow these steps:

• Visit Fidelity's Website: Start by visiting www.fidelity.com.
• Account Selection: Choose the type of account you wish to open. For stock trading, the most common choice is an individual brokerage account.
• Fill Out Application: Complete the online application form, providing your personal information like your Social Security Number, employment details, and financial status.
• Review and Submit: After filling in the necessary details, review your information and submit your application. You'll receive confirmation once your account is successfully created.

2. Fund Your Account

Before you can buy stocks, you need to deposit funds into your newly created Fidelity account:

• Link Bank Account: Link your bank account to your Fidelity account for easy transfers.
• Transfer Funds: Use Fidelity's interface to transfer funds from your bank account to your brokerage account. This generally takes a few business days to process.
• Verify Your Account: Make sure the funds have been successfully credited to your Fidelity account before proceeding to buy stocks.

3. Research Stocks

Fidelity offers extensive research tools to help you make informed decisions:

• Stock Screener: Use Fidelity’s stock screener to filter and research stocks based on various criteria like market capitalization, sector, and price.
• Reports and Analysis: Access analysis from Fidelity’s in-house analysts, as well as third-party analysis, to gain insights into potential stock performance.
• Historical Data: Review historical stock performance to understand trends and potential future movement.

4. Place a Stock Order

Once you've chosen the stocks you want to invest in, it's time to place an order:

• Log Into Your Account: Access your brokerage account through Fidelity’s website or mobile app.
• Search for Your Stock: Use the search bar to find the stock you wish to purchase by entering the company name or ticker symbol.
• Select Buy: Click on the “Trade” or “Buy” button next to the stock.
• Order Type: There are several types of orders you can place:
  • Market Order: Buy the stock at the current market price.
  • Limit Order: Set a specific price at which you'd like to buy.
  • Stop Order: Set an order to buy once the stock reaches a certain price.
  • Stop-Limit Order: Combines both stop order and limit order, giving more control over the buying price.
• Enter Quantity: Specify the number of shares you want to purchase.
• Review Order: Before finalizing, review your order details for accuracy.
• Submit Order: Once satisfied, submit the order. You’ll receive a confirmation once the transaction is complete.

5. Monitor Your Stocks

After purchasing, it’s important to regularly monitor your investments:

• Portfolio Overview: Check the performance of your stocks through the portfolio section of Fidelity’s platform.
• Set Alerts: Fidelity allows you to set alerts for specific stock price movements, helping you stay updated.
• Review Financial News: Stay informed about market news that may affect your stocks.

Important Considerations

• Fees and Commissions: While Fidelity offers competitive rates, be sure you understand any potential fees associated with buying stocks.
• Risk Tolerance: Understand your risk capacity before investing. Stocks can be volatile, and it’s important to balance risk with potential returns.
• Diversification: Avoid putting all your money into one stock. Consider investing in a diverse portfolio to mitigate risk.

Frequently Asked Questions (FAQs)

Is there a minimum amount needed to open a Fidelity brokerage account?

Fidelity does not have a minimum for opening a standard brokerage account, but you’ll need funds to start trading.

What is the typical cost of trading stocks on Fidelity?

Fidelity offers $0 commission for online US stock trades. However, some other trading fees may apply.

Can I buy international stocks through Fidelity?

Yes, Fidelity offers access to international markets, but the process and fees may differ from domestic trades.

How long does it take for a stock order to execute?

Market orders typically execute immediately during market hours, while limit or stop orders execute based on your specified conditions.

Additional Resources

• Fidelity Learning Center: Explore in-depth tutorials and webinars on investing and trading.
• Investor Forums: Engage with other investors to share insights and strategies.

Enhancing Your Investment Skills

Investing in the stock market is a journey that involves continuous learning. As you become more comfortable with the Fidelity platform and stock investing in general, take the opportunity to explore advanced strategies such as options trading and margin trading, offered by Fidelity.

While this guide provides a comprehensive understanding of how to buy stock on Fidelity, remember that each investor's journey is unique. Your trading strategies should align with your financial goals, risk tolerance, and investment horizon. Feel confident in exploring the diverse investment opportunities available, and happy investing!