How to Buy Stocks on E*TRADE | The Motley Fool (2024)

E*TRADE is a feature-packed broker with an easy-to-use trading platform. That makes it a popular choice with everyone from beginners to experienced investors. If you've decided to use it, the next step is learning how to buy the stocks you want.

In this guide, you'll learn how to buy stocks on E*TRADE step by step. We'll also cover how to sell stocks, deciding if this is the right broker for you, and some alternatives in case you want to compare your options.

To invest on E*TRADE, you need to open an account, transfer money to it, pick a stock, and place your order. Here's more information on each of these steps.

1. Open an E*TRADE account

You can set up an E*TRADE account online in about 10 minutes. Start by selecting the option to open an account, and then pick the type of account you want. E*TRADE offers standard brokerage accounts and individual retirement accounts (IRAs), including traditional IRAs and Roth IRAs.

You'll need the following information during the application process:

• Full name
• Date of birth
• Home address
• Phone number
• Social Security number

2. Fund your account

You have the option to transfer money to your E*TRADE account when you open it, or you can do it later. E*TRADE doesn't have a minimum balance requirement, so you don't need to fund your account right away.

Once you have an account, select "Transfer" to deposit money to it. You can then set up a bank account transfer or a money wire. Keep in mind that bank account transfers can take up to three business days, so you'll need to wait for that to process before you can start investing.

3. Choose the stock you want

Go to the Trading section of your account and enter the ticker symbol for the stock you want to buy. You can do this through E*TRADE's web platform or its mobile investing app. Once you choose a stock, you'll see a current price quote, a snapshot of its chart, and an order form.

Always spend some time researching a stock before you invest in it. E*TRADE has some excellent tools to help with this, including recent news, fundamentals, analyst research, and much more.

4. Submit your order

Here's how to submit an order on E*TRADE:

• Select "Buy" in the action menu.
• Enter the number of shares you want to buy.
• Select a type of order, such as a market order that executes immediately or a limit order that only executes at your designated price.
• Select an order duration.

Once you've done that, you can review and submit your order.

The process for selling stocks on E*TRADE is the same as buying stocks. The only difference is that you'll select the option to sell instead of buy. Here's exactly how it works:

• In your portfolio, select the stock you want to sell.
• Select "Sell" in the action menu.
• Enter the number of shares you want to sell.
• Select a type of order and an order duration.
• Review and submit your order.

Selling stocks has tax implications. You'll owe capital gains taxes if you made a profit, or if you lost money, you can use that as a deduction. For more information, check out The Ascent's guide to investing and taxes.

If you're looking for an online broker, E*TRADE is a great choice. You'll have no shortage of investment opportunities, as it offers stocks, exchange-traded funds (ETFs), mutual funds, options, and futures. It also has highly regarded user interfaces, including on its web platform, mobile app, and the Power E*TRADE platform.

E*TRADE doesn't have any major drawbacks, although it's missing a couple of features. Unlike many top stock brokers, E*TRADE doesn't offer fractional shares, so you need to buy entire shares of any stocks you want. It also doesn't offer cryptocurrency or forex trading.

None of those are huge issues, especially if you're primarily looking to invest in stocks, mutual funds, and ETFs. E*TRADE has everything you need for that, as well as ample research tools to help you decide where to invest your money.