How to Buy and Sell Stocks and ETFs on Fidelity

Fidelity is one of the most trusted and widely used investment platforms in the United States. Whether you’re a beginner investor or someone looking to diversify their portfolio with Exchange Traded Funds (ETFs), Fidelity offers a robust set of tools to buy and sell securities easily. In this guide, we’ll walk you step-by-step on how to buy and sell stocks and ETFs on Fidelity, and we’ll also touch on the platform’s analytics and trading features.

Getting Started: Logging into Fidelity

Before you can begin trading, you’ll need to log into your Fidelity account. Make sure that your account is fully set up and funded. If you have multiple accounts (e.g., individual, retirement, joint), make sure you know which one you want to use for trading.

Step 1: Navigating to the Trade Button

Once you’re logged in, look at the top left corner of the Fidelity dashboard. You’ll see a “Trade” button. It’s not very prominent, so you may need to look closely to find it. Click on this button to begin placing a trade.

A popup window will appear, which you can move around freely. This is where all trading actions happen.

Step 2: Choosing Your Stock or ETF

In the popup window, you can select a stock or ETF that you want to trade. For demonstration purposes, let’s take SCHD (Schwab U.S. Dividend Equity ETF), which is a popular choice for dividend investors.

Also, make sure you’re selecting the correct account for the trade, especially if you have more than one account with Fidelity.

Step 3: Buying Stocks or ETFs

To purchase an asset:

1. Choose Action: Set the action to Buy.
2. Enter Quantity: Specify how many shares you want to buy.
3. Order Type: Select Market Order if you want to buy at the current market price. You can also choose a Limit Order if you want to specify a price.
4. Preview Order: Click this to review your selections.
5. Place Order: If everything looks good, click Place Order to complete the purchase.

Once confirmed, your stock or ETF will be added to your account’s holdings.

Step 4: Selling Stocks or ETFs

Selling is just as straightforward as buying:

1. Return to the Trade button.
2. Select the asset you wish to sell.
3. Set the action to Sell.
4. Enter the number of shares you want to sell.
5. Choose Market or Limit order type.
6. Click Preview Order.
7. If everything looks right, click Place Order to sell your asset.

Again, ensure you’re operating within the correct account and double-check the quantity and order type before executing the sale.

Exploring Your Portfolio and Performance

Fidelity offers a suite of features to help you track your investments. To see your current holdings, click on the Positions tab.

What You Can View in Positions:

• Stock or ETF name
• Last traded price
• Total gain or loss
• Percentage gain or loss
• Account allocation

This section gives you a quick overview of how your investments are performing at any given time.

Reviewing Past Activity

To keep track of all your past trades, head over to the Activity & Orders section.

This feature provides:

• A detailed summary of past transactions
• Filters for time periods (e.g., last 30 days, 1 year, or even custom date ranges up to 5 years)
• Clarity on which trades were executed and when

This is a very useful tool for record-keeping, tax planning, and general portfolio evaluation.

Viewing Detailed ETF or Stock Information

Fidelity provides detailed insights when you click on a particular stock or ETF in your portfolio. For example, clicking on SCHD (the ETF we bought earlier) will bring up a detailed overview including:

• Daily price movement
• Net expense ratio
• Value of net assets
• Last dividend distribution date
• Top holdings in the ETF

These insights are invaluable for evaluating the health and strategy behind your investments.

Using Fidelity’s Trading Dashboard

Fidelity also offers a more dynamic view of your investments through its internal trading dashboard. This interface shows all your positions in a tabular format and offers fast access to trading actions.

By clicking on an asset, the Buy and Sell buttons appear on the right-hand side, allowing you to trade more quickly than through the standard popup method.

Creating a Watchlist

Keeping an eye on potential investments is easy with Fidelity’s Watchlist feature.

To create one:

1. Click on Create Watchlist.
2. Add stock or ETF symbols using the Add Symbol button.
3. For instance, if you want to watch Pepsi (PEP), just type in the symbol and it will be added.

Clicking on an item in the watchlist gives you immediate access to its buy/sell options and shows you a basic chart of its recent performance.

Trading Options on Fidelity

For those interested in options trading, Fidelity provides a feature-rich experience.

Option Chain

Clicking on Option Chain brings up a structured interface where you can view different strike prices, expiration dates, and option types (calls/puts).

Option Statistics

If you select Option Statistics, you can explore:

• What the majority of other traders are doing
• The Top 20 trades of the day for a given stock

These analytics can be very useful for active traders seeking momentum-based or sentiment-driven strategies.

Fidelity’s Desktop Platform: Active Trader Pro

While the web platform is suitable for most investors, day traders or very active investors may prefer Active Trader Pro, a downloadable trading platform offered by Fidelity.

This advanced tool provides:

• Real-time data and analytics
• Enhanced charting capabilities
• Faster execution speeds
• Customizable dashboards

If you’re planning to engage in high-frequency trading or complex strategies, downloading Active Trader Pro may be worth your while.

How to Buy and Sell Stocks and ETFs on Fidelity – Final Thoughts

Fidelity offers a comprehensive yet user-friendly platform for buying and selling stocks and ETFs. From placing basic trades to analyzing ETFs and building a watchlist, the tools are all there. While the trading interface may not be as flashy as some competitors, it more than serves the needs of long-term investors.

Here’s a quick recap of what we covered:

• How to buy and sell stocks and ETFs
• Viewing current positions and trade history
• Exploring stock and ETF analytics
• Using the trading dashboard for quick actions
• Creating a watchlist
• Introduction to options trading
• Using Active Trader Pro for more advanced needs

With these features at your fingertips, Fidelity makes investing both accessible and powerful.