How To Buy Facebook Stock – A Step By Step Guide

How To Buy Facebook StockFacebook stock (FB) has now been public for more than four years and it remains one of the most actively traded stocks on any exchange. The average number of shares that are bought and sold every day is about 17,000,000 at the time I write this.

If you want to know how to buy Facebook stock, this step by step guide will show you how. This guide is meant for investors from the United States as I am not familiar with how to buy stocks if you live in other countries.

1) You Need To Open An Online Discount Broker Account

The first thing you need to do in order to buy Facebook stock (or any stock) is to sign up and open a broker account. It can all be done online and will take approximately 30 minutes.

I recommend TD Ameritrade for investors of all levels and it is the broker for my portfolio that you can see on the front page of this website. There are many other online discount brokers to choose from and some of the bigger names include E*Trade, Scottrade, Fidelity, Merrill Edge, and Charles Schwab. But TD Amertrade is great for investors of all levels and it came in 3rd place in Barron’s 2017 broker rankings. You can open a new account with any amount of money as there are no minimum requirements and I have been very satisfied with my account and level of service they provided in the couple of times I have need it. In the end though, any one of those brokers listed above is a good option and you can buy Facebook stock with an account at any one of them. **Generally you must have a United States Social Security number and be living in the U.S. to open an online broker account**


2) You Need To Fund Your Account

Signing up for a new online account with an online broker is only the first step. Just as important is the act of “funding” your account. Funding encompasses the different ways you can put money into that account. After all, you can’t buy stock with a zero balance!

Many brokers have a $2,000 minimum to open a new account. That is why I like TD Ameritrade and you can open your account with whatever dollar amount you have. That’s great for anyone who is just starting out and doesn’t want to commit too much right away.

Most, if not all, online brokers have the same funding methods available and each will have a detailed section on how to do it. The two most popular ways are 1) electronic funding from a bank account to your new broker account and  2) to just write a check and send it to them. A check may take a week to get delivered and processed while the electronic option will only take a day or two to complete.

Other ways to fund most broker accounts are by transferring money from another brokerage account, a wire transfer, and cashing in stock certificates. Again, for every option available there should be clear and concise instruction on how to do it. Additionally, you will probably see a toll free phone number you can use to talk to a real person if you have further funding questions. 


3) Waiting For Your Account To Be Funded

While you wait for the money you sent to actually be deposited in your new broker account, I suggest you sign up for a free account with Wall Street Survivor. You will get $100,000 of virtual currency and can practice buying and selling stocks on their simulated stock market. Much like the real thing, you will be able to get the feel of what trading stocks is like. Additionally, WSS has a variety of videos and courses (you have to pay a membership fee to access those) that will take any beginner and teach them the basics of investing and demystify much of the jargon that can be intimidating. All in all, Wall Street Survivor is a user friendly place to get started learning how to invest your money in stocks.

4) Buying Facebook Stock

Once your money shows up in your broker account, you will then be able to buy stock in any company that is publicly traded on the NASDAQ and New York Stock Exchange. With a few clicks of your computer mouse, the number of shares of Facebook you desire to purchase can be yours. The ticker symbol for Facebook is “FB” and you will use that to place your order. 

Buying Facebook stock and all other stocks is real easy once you open that first broker account. Unfortunately, many potential young investors never get around to doing it and procrastination leads to them never having money in the stock market which is a huge financial mistake. The younger you are, the more important it is to put your money in stocks because you have time on your side: valuable time to wait out any market corrections and downturns because you don’t need that retirement money for many years.

Should you buy Facebook stock? It may or may not be a good investment and I can’t tell you whether you should buy it at the time you read this. As of October 2016, Facebook has become an extremely successful business and its purchases of Instagram and WhatsApp look like they will pay off many times over in the coming years. If Facebook had never bought them, those two companies would have undoubtedly gone public and we would all be wondering today whether Instagram stock and WhatsApp stock are worth buying. But now Facebook owns all three and is successfully starting to monetize them while continuing to sign up new users around the world. Its advertising business is doing exceptionally well and many analysts continue to rate the stock a “buy” even though the stock’s price is near an all time high in the $130’s.

Disclaimer: Please remember that you should always consult your financial planner or stock broker and the information on this website is my opinion and I never recommend you buy or sell any particular stock. I show you what stocks I am buying and selling but you should make your own decisions!


69 Responses to “How To Buy Facebook Stock – A Step By Step Guide”

  1. Jasna says:

    Hey Bruce,

    I’m Jas, I’m trying to start this process but I have a few questions, I have 1000 bucks I’m trying to invest in Facebook. First is that a good amount?
    I would like to go long term 5 + years and so on if I can…..but could I also use the money I invest for emergency cases If need be ? If so how soon is the money you invest available?

    Also how much did you first invest when you started?

    Also throughout your time investing how fast did you gain profit and how much?

    Did you go through OptionsHouse ? Or do you know people who did?

    After buying a stock are you charged the (fee from options house) right then and is it per stock you buy?

    How many stocks can you buy or should you stick to one first and later buy more ?

    How much of Facebook stock should I buy with my 1000 bucks?

    • Bruce Alan says:

      Jasna,

      1) Yes, you can start with $1,000. If you have all of your $1,000 in a stock (or several stocks) and you need it for an emergency, you will have to sell your stock(s) and the money will be available with a day or two.
      2) I started with $10,000 I think? I can’t remember for sure.
      3) I can’t answer that question. How much you will make or lose depends on whether you sell your stocks after they go up or down.
      4) I started with a broker that no longer exists (it was bought by a bigger company and the name has changed many times)
      5) Yes, the fee when you buy a stock is charged immediately. Same when you sell.
      6) You can buy as many as you want as long as you don’t run out of money. You could buy 1 share of Facebook or as many as $1,000 will allow. Or, you can put half of your money into FB and half into another stock. Or you could put 1/3rd of your money into FB and leave the rest for other stocks. Whatever you want to do.
      7) I try to stay away from recommending any stocks because I don’t want my readers to get upset if those stocks go down. I only show you what I am doing with my portfolio so you can see how it all works.

      Thanks for reading.

  2. Krystal says:

    Hi. Thanks for all the advice! I have a question?

    I have $5,000 in a SEP IRA ( my accountant told me to but I feel I dont full understand what it is yet). My plan in to contribute $5k per year to start and increase from there as I make more money. This is currently with TDAmeritrade. I funded the account but I have’t done anything with it. Am I supposed to pick my owns to stock to invest that money in ( i.e. buy a few Facebook shares) or do IRAs not work the same as just buying stocks. If would be great to use my retirement savings and put it to work in the stock market for me. Thanks!

    • Bruce Alan says:

      Krystal,
      I am not an expert on such matters but I believe you will need to pick the stocks (and any other investments) you want to buy yourself in that account. I suggest going to the TD Ameritrade website and finding out more information there and I think there will be an 800 number to call that will put you in contact with a real person. Hope this helps.

  3. Wanda j says:

    Hi Bruce,
    I just want to know if I can start buying stock with only $50.00? I also want to know exactly what I have to do to buy stock. I’m not young by no means but I would like to know more on buying stock BC I am interested in buying and learning how it works so that I don’t lose my money.

    Thank You,
    Wanda J.

  4. Jay Call says:

    Hi there.
    I was wondering if I may use a Finical advisor though Edward Jones to buy stock in Facebook? I like the ‘in person’ aspect rather than doing everything online.

    Is it a good idea to use Edward Jones when buy stock in Facebook?

    And are there any downfalls with using Edward Jones to buy Facebook Stock instead of an online website?

    Also what web page would you MOST suggest I use to buy Facebook Stock if I should not use Edward Jones?

    Thank you,
    Jay

    • Bruce Alan says:

      I believe Edward Jones is more of a full service broker and, like you say, sits you down in person and works with you to understand your exact investing goals. Of course for that very personal service you will have to pay more (probably a lot more) every time you buy or sell a stock.

      Yes, you will for sure be able to buy Facebook stock if you use them.

      If you decide you don’t want to pay for that type of full service broker and investment manager that they provide, there are many online stock brokers to choose from but OptionsHouse has one of the lowest fee structures ($4.95 per trade) and it came in third in Barron’s yearly review of online brokers.

  5. Daniel says:

    Hi Bruce, I am very new to this and have lost allot of money which is my own fault. I am using etoro to learn. I want to invest in facebook as it seems like a safe bet and is quite low right now. if I invest $1000 etoro will charge me $0.83 cents per day and $2.50 on weekends. is this normal

    • Bruce Alan says:

      Daniel,
      I don’t know what eToro is. It is NOT an online stock broker that is accessible to U.S. investors. The words “trading” and “traders” is everywhere on the site and so I would beware. I invest (meaning buy and hold for months/years) my money in different stocks, I don’t trade them. Personally, I would steer clear of eToro unless it lets you buy stocks and own and hold them for a set fee.

  6. Lonnie says:

    Hi Bruce,

    I’m really interested and new to investment.
    I want to make a career out of it. So do I actually receive ACTUAL spend money from this as far as paying my bills etc? If so how long would it take to receive money?

    • Bruce Alan says:

      Lonnie,
      It is VERY unlikely you can make a “career” out of it. The only way you can do that is to become a day trader which I am NOT and do NOT recommend. I am a long term investor who puts the money I have saved (through working at my job) into stocks of companies that I think will do well over time.

      If I want to take any of the money out at any time I can, but my goal is to not have to take money out of my portfolio for personal use. I am investing money that I hope I won’t need until I retire.

      • Asif says:

        Hello Bruce Alan, it’s my first mail or am asking someone first time about how to invest online via a broker, I will be very glad if you help me out plz. Here I try to putt my requests to …
        I would like invest for long term something like maybe more than 5 years, I live in Norway so plz kindly let me know any trustable broker or brokers so I can invest.
        I have found when we open some account they ask a American social security number, so I need a trustable broker who have a long history so I can safely invest some money.
        Could u tell me any broker for those ,y some friends who don’t live in Europe
        With Thanks
        Asif

        • Bruce Alan says:

          Asif,
          I’m sorry but I have no idea how someone who lives in Norway can buy stocks on the American exchanges. Have you done a search on Google to find out if any brokers in Europe allow you to do that? I just don’t have the information you ask and suggest you ask around and perhaps do more searching online to find out how it all works in Europe.

  7. Tadas says:

    Hello, do you own a stock when you buy it from online broker, or it is the online broker who owns a stock? How to own a stock yourself and be able to transfer it to any broker or sell it anywhere?

    Thank you very much.

    • Bruce Alan says:

      Tadas,
      Yes, you own a stock when you buy it from any online broker. The broker is just the intermediary and they hold it for you and print statements and tax reporting etc. If you ever want to change brokers, you can easily move all your stock holdings from one broker to another with no penalty. Again you ALWAYS own the stocks you buy in any online broker and stock ownership means you actually own a small part of the company.

  8. Michelle says:

    Hi Bruce
    Unfortunately I am late in life getting started with investing. I want to buy FB stock and wondered if ETrade has fees like you mentioned in previous comments.

    Can you explain what you mean when you state each stock trade?

    I appreciate your comments

    Thank you

    • Bruce Alan says:

      Michelle,
      It costs $9.99 to initiate each stock trade on E*Trade. It doesn’t matter whether you buy 1 share or 10,000 shares, each time you push the “Buy” button it costs $9.99. Likewise, each time you sell any amount of your stock and push the “Sell” button it costs $9.99. Each time you buy or sell any amount of stock it is called a “trade” and it costs $9.99.

  9. Lisa says:

    Hi Bruce,

    New to all of this. Questions:

    If I have 100. in my savings and want to try it in stock, I put that whole 100. in a broker account, can I use only $20. to $40 to buy stock? And, should I leave the other $60. – $80 in that account ?

    When stocks fall, do they take money out of our stock account? Or, do you get charged a bill?

    And do they pay us every three months into our account?

    • Bruce Alan says:

      Lisa,
      If you put $100 in a broker account, you can buy as little as 1 stock of any company. The rest will remain in the cash part of your account. The amount you use to buy stock is now in that stock, and the price of that stock will go up or down so the value of your stock(s) fluctuate daily. Money goes from the cash part of your account into the stocks you buy and then when you sell them, back out of the stock and into your cash. Everything happens on a second by second basis…the value of your account (if you own stocks) changes by the second when the market is open. I take a screen print of my account everyday and put it on the front page of this website so you can check it out to see how it changes to get a better understanding of this.

      If you only have $100, you will be paying $4.95 to $9.99 per stock trade which will eat away all your money very quickly. For that reason, I recommend saving at least $2,000 before you open an account with any of the discount online brokers. People with less money might open something at Robinhood which has free trading but I have no experience with it and cannot personally vouch for it.

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