How To Buy Stock On Fidelity
A premarket or after hours quote obtained from Fidelity.com is the best real-time quote for a stock eligible for tradingduring extended hours. Extended hours quotes reflect the best prices (top of book) available in the Arca order book.
how to buy stock on fidelity
If a stock that normally trades on the ECN closes on a trading halt in its primary market, or trading is later halted by itsprimary exchange or a regulatory authority, trading of that stock will also be suspended on the ECN. The rules of Nasdaq and thestock exchange governing stock halts apply to the extended hours trading sessions, as they do to other sessions.
You might be thinking, "But wait, shouldn't my first step be to find some hot, secret stock picks that I can ride to the moon?" But in truth, successful investing generally starts with what you're investing for, not what you're investing in.
Brokerage account: When people talk about trading stocks, they're typically talking about doing so in a brokerage account. You can think of a brokerage account as your standard-issue investment account. Here are the basics:
Target Date Funds are an asset mix of stocks, bonds and other investments that automatically becomes more conservative as the fund approaches its target retirement date and beyond. Principal invested is not guaranteed.
Stock markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. Investing in stock involves risks, including the loss of principal.
Here's how fractional shares or dollar-based orders work. Assume you have a diversified portfolio (or you are trying to diversify an existing portfolio), and you have $20,000 that you would like to invest. After doing your research, you find a stock or ETF that trades for $130 you would like to purchase. Previously, you would be able to buy 153 whole shares ($130 x 153 = $19,890) with this amount of investment money. With fractional shares or dollar-based orders, if you wanted to invest the entire $20,000, a broker that enables fractional shares would allow you to purchase 153.8 shares (assuming no trading or transaction costs).
Of course, all the risks associated with investing in whole shares of stocks and ETFs exist for fractional shares or dollar-based orders. The primary risk is your investment can go to zero. Additionally, each stock has its own unique risks, and investors should seek to build a diversified portfolio and try to avoid having a mix of individual investments that would constitute an undiversified portfolio.
With fractional shares or dollar-based orders, you can trade National Market System (NMS) exchange-listed stocks. This includes stocks listed on the NYSE or Nasdaq. Stocks and ETFs available for fractional shares or dollar-based orders can change at any time, and you will receive an error message if an investment you are trying to trade is not eligible.
Due to the unique risks of owning individual stocks, it is critically important to consider building a diversified portfolio of investments that align with your objectives and risk tolerance. When the time comes to make a new investment or manage an existing position, if you want to make trades on your terms, you may want to consider fractional shares or dollar-based orders.
When trading in fractions or dollars you can trade National Market System (NMS) exchange-listed stocks. This includes stocks listed on the NYSE or Nasdaq. You will receive an error message if a specific security is not eligible.
Who wouldn't want to have bought in at ground-floor prices of companies before they became big and successful? That's the hope of many penny stock investors. If you've never heard of penny stocks or are considering investing in them, here are some of the key things to think about.
A penny stock is loosely categorized by the Securities and Exchange Commission as one that trades for less than $5 per share and usually has a relatively small market capitalization (i.e., company value).
In practice, you might come across several definitions of a penny stock. Some investors consider penny stocks to be those that trade for less than $1 and/or over the counter on the OTC Bulletin Board. You may see penny stocks referred to as micro-cap stocks at Fidelity (or as "small companies" elsewhere).
Investors who like penny stocks perceive them as having several attractive features: the low stock price, which allows investors to buy a relatively large number of shares, and the potential for quick gains." Some penny stock investors may buy tens of thousands of shares for a relatively low amount of money, hoping that the price will rise sharply over a short period of time. But there is much more to think about when it comes to penny stocks.
It's important to know the risks of penny stocks because of the greater potential for loss associated with these types of investments, compared with established companies that trade on larger exchanges.
Less stringent disclosure requirements can make penny stocks particularly susceptible to illegal "pump-and-dump" schemes where unscrupulous investors buy the stock, actively promote only its virtues (e.g., "pump it up"), and then, if the stock price appreciates, sell it (e.g., "dump") at an artificially inflated price. Because they are often small in size, penny stock companies do not receive the same level of media and analyst coverage as larger, public companies, so it can be difficult for investors to determine the validity of claims made by pump-and-dump schemers. Unfortunately, those who bought the stock at the high end could be left high and dry.
Additionally, penny stocks can have low liquidity. Many penny stocks are thinly traded. When buying or selling a stock that has low trading volume, investors may not be able to do so at their desired price or time, and that can be costly. Low liquidity is a contributing factor to potentially high bid-ask spreads for penny stocks. This means that, relative to most stocks traded on the Nasdaq or the NYSE, the cost of trading these stocks is typically higher.
Of course, there is the potential to make money investing in penny stocks. However, penny stock investors are taking on a dramatic increase in potential price volatility and risk; there is an even stronger chance that investing in penny stocks could result in losing part or all of your investment. The bottom line is this: Investing in penny stocks entails significantly more risk compared with investing in established companies.
Note: All international stocks must be sold on the same exchange where you originally purchased the shares. For example, if you purchase 100 shares of Nestlé* on the French exchange and you decide to sell those shares, you must do so on the French exchange. This is true even if the company trades on more than one exchange in different markets. You can learn more on our International Stock Trading page and by reviewing the FAQs.
Other types of exchange-listed securities such as rights, warrants, or different classes of stock (e.g., Class A, Class B) may not be available. Security type availability is subject to change without notice.
Order DetailsInternational orders can be entered at any time but will only be eligible for execution during the local market hours for the security. International orders are limited to common stocks with the following order restrictions:
International stocks use a different symbology than domestic stocks. To quote, research, or trade international stocks, enter the stock symbol, followed by a colon (:) and then the two-letter country code for the market you wish to trade in. For example, the company Fiat SPA Torino in Italy would trade under symbol F:IT for its ordinary shares. In Germany, it would trade under symbol FIAT:DE. This symbology can only be used to buy or sell stocks on the international trade ticket.
QuotesReal-time quotes1 are available for international stocks using the Get Quote Tool along the top of Fidelity.com or within your International Stock Trading page. Although the real-time primary market quote is displayed, international orders may execute on the primary exchange, or they may execute on ECNs, ATSs or regional exchanges within the market.
Note: International stocks must be bought and sold in the same market. For example, shares of a stock purchased in Germany could not be sold in France even though the company may trade on one or more exchanges in different markets.
For example, the required board lot size for Canadian stocks trading between $0.10-0.99 CAD is 500 shares. To place an order to buy a Canadian security offered at $0.75 per share, your order quantity would need to be a multiple of 500 (the board lot size); e.g., 500 shares, 1,000 shares, 1,500 shares, and so on.
Currency exchange feesIf you choose U.S. dollars as the settlement currency for your international stock trade, a foreign currency exchange fee (in the form of a markup or markdown) based on the size of the currency conversion will be charged when the foreign currency exchange executes.
With international trading, most common stocks and exchange-traded funds (ETFs) listed in Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Singapore, South Africa, Spain, Sweden, Switzerland, and the United Kingdom are available to trade online directly in the local market.
An ADR is a security that trades in the U.S. and in U.S. dollars, but represents claims to shares of a foreign stock. The ADR is created by a bank that purchases foreign stock and then issues receipts of that company in the U.S. for trading on an exchange or over the counter (OTC) market. 041b061a72