How to buy stocks for free — Beginner’s Guide

How to buy stocks for free

Quick answer: "How to buy stocks for free" usually means placing US-listed stock or ETF trades without paying per-trade commissions. This guide explains the methods, trade‑offs, how to start step‑by‑step, hidden costs to watch, and safe ways to claim promotions — plus where Bitget fits as a recommended platform and Bitget Wallet for Web3 needs.

Last updated: 2026-01-15. Sources referenced include CNBC, Bankrate, NerdWallet, StockBrokers.com, The Motley Fool, E*TRADE, U.S. Bank, and Barchart reporting noted below.

Why this guide and what you'll learn

If you searched "how to buy stocks for free", you want practical, actionable information that a beginner can use without getting surprised by hidden fees or poor execution. In the first 100 words you got the keyword and a clear promise: this guide covers commission‑free options, fractional buying, sign‑up/referral free shares, DRIPs, bank perks, execution quality issues like payment for order flow (PFOF), tax treatment of free shares, and step‑by‑step setup. It also highlights Bitget as a recommended platform and Bitget Wallet for Web3 integration where appropriate.

Background and industry context

In the late 2010s and early 2020s, many US retail brokers shifted to $0 online equity and ETF commissions. Competition for retail order flow, the rise of mobile trading apps, and technological efficiencies made zero‑commission offers common. As of 2026-01-15, multiple industry guides and comparison sites list numerous commission‑free platforms for US stocks and ETFs.

As of 2026-01-15, according to CNBC and NerdWallet reporting, the dominant trend in retail brokerage is zero online commissions for US-listed stocks and ETFs, while other revenue sources (order routing payments, subscription tiers, interest on uninvested cash) remain important to brokers' business models. This context explains why "how to buy stocks for free" is a realistic goal — and why it requires nuance.

What "free" typically means

• "Free" most often refers specifically to $0 per‑trade commission for online orders of US‑listed common stocks and ETFs. It does not automatically mean there are no costs at all.
• Other charges may still apply: exchange or regulatory fees on certain sell orders, transfer‑out (ACAT) fees, broker‑assisted trade fees, margin interest, options contract fees, and account maintenance fees in rare cases.
• Execution quality matters: price improvement, spreads, and routing practices such as payment for order flow can affect the effective cost of a so‑called free trade.

Understanding those trade‑offs is central to figuring out how to buy stocks for free in a way that truly works for your goals.

Main ways to buy stocks for free

Commission‑free brokers and trading apps

Many retail brokers now offer $0 online commissions for US stocks and ETFs. Examples of common providers discussed in industry reviews include mainstream brokerages and mobile trading apps that explicitly advertise zero commissions for equities and ETFs.

Key features to check when selecting a commission‑free broker:

• Confirm $0 commission applies to US stock and ETF online orders for your account type.
• Check whether fractional shares are available and whether ETFs and mutual funds have transaction fees.
• Review research, educational tools, and trade execution disclosures.
• Verify account minimums and whether promotional free trades or bonus shares are time‑limited.

Brokers may differentiate with better research, no‑fee IRAs, managed account options, or additional services, so "free" on commission does not imply identical products or protections across platforms.

Fractional shares and low‑minimum investing

Fractional shares let investors buy a portion of one share, making expensive stocks accessible without paying full share price up front. Many brokers offer fractional shares with no commissions on purchases and recurring investment plans.

How fractional shares relate to "how to buy stocks for free":

• Fractional trading removes price barriers while often keeping $0 commissions intact.
• Execution for fractional trades may be batched and priced differently than whole‑share market prints; read execution disclosures.

Promotional free shares and referral bonuses

Brokerages and apps frequently run sign‑up promotions that award free shares or cash after opening and funding an account. Referral programs can also give both referrer and referee bonus stocks.

Typical rules and caveats:

• Promotions often require a minimum deposit, maintaining the account for a set period, or completing certain actions.
• Awarded free shares usually have a fair market value recorded for tax purposes and may be subject to vesting or restrictions.
• Promotion details change rapidly; always read the terms and conditions.

Bankrate and other personal finance sites summarize common free‑share promotion mechanics and list examples in their periodic roundup of offers.

Bank/broker bundled offers (free trades as account perks)

Some banks or wealth platforms include a number of free trades per month or year as a perk for maintaining qualifying deposit balances or linked checking accounts. For example, U.S. Bank and other institutions have offered bundled free trades as loyalty benefits.

If you qualify for such perks, this can be a cost‑effective way to meet "how to buy stocks for free" goals while keeping banking and investing under one provider.

Dividend reinvestment plans (DRIPs) and broker DRIPs

DRIPs automatically reinvest cash dividends into additional shares or fractional shares of the paying company. Many brokers offer broker‑facilitated DRIPs without commission for reinvestments.

Why DRIPs matter for "how to buy stocks for free":

• Reinvested dividends are typically executed without per‑trade commissions, allowing cost‑effective compounding.
• If a company offers a direct DRIP, it may let investors buy new shares directly from the company (direct stock purchase plans) sometimes at low or no fees.

Commission‑free ETFs and mutual funds

Many brokers provide access to commission‑free, no‑transaction‑fee (NTF) ETFs and a roster of no‑load mutual funds. For investors seeking diversified exposure without per‑trade commissions, these funds can be an efficient option.

Note that ETFs have spreads between bid and ask; even with zero commission, spread costs remain.

Step‑by‑step: how to get started buying stocks for free

1) Choosing a broker

Checklist to evaluate prospective brokers:

• Confirm $0 commissions on US stock/ETF online trades for your account type.
• Check fractional share support, recurring investment features, and minimums.
• Read the broker's order execution policy and payment for order flow disclosures.
• Verify SIPC protection and cash sweep FDIC coverage options.
• Compare research, mobile app usability, and educational resources.
• Consider promotions, sign‑up bonuses, and referral programs but treat them as secondary to long‑term service quality.

For Web3 integration and wallet needs, consider Bitget and Bitget Wallet when you want a platform that combines centralized brokerage features with broader crypto/Web3 services. Bitget can be positioned as a recommended exchange for users who also seek crypto exposure alongside stock investing.

2) Opening and funding an account

Typical steps:

• Provide personal information (name, address, SSN/Tax ID) and ID verification.
• Choose account type: taxable brokerage, traditional/Roth IRA, or custodial account.
• Link a bank account via ACH and initiate a deposit. Verify timing and any funding minimums for promotions.
• If claiming a promotion, make sure you follow the exact deposit, promo code, or funding timeline requirements.
• Review hold periods: newly deposited funds may be subject to settlement rules before being fully tradeable.

3) Placing your first commission‑free trade

Basic order types:

• Market order: executes at the best available price; simple but may be less predictable in fast markets.
• Limit order: sets a maximum buy price (or minimum sell price); gives control over execution price.

If your broker supports fractional shares, choose fractional or whole share amount. Confirm estimated execution price and any potential fees before submitting.

Check the trade confirmation and order history after execution to verify fill price and size.

4) Using promotions and referrals safely

Best practices:

• Read the promotion terms, minimum deposit rules, timeframe, and any required holding period.
• Beware of temporary or marketing‑only offers that might later revert to higher fees.
• Keep records of awarded free shares for tax reporting: the platform will typically include their value on Form 1099.

Hidden costs and trade‑offs to watch for

Even when commissions are $0, several hidden costs can make trading more expensive than it appears.

Payment for order flow (PFOF) and execution quality

What it is:

• Some brokers receive payment for routing retail orders to market makers or venues that pay for that flow.

Why it matters:

• PFOF is legal and disclosed, but it may influence execution quality: the price at which your order fills can be slightly worse than the national best bid or offer.
• Regulators and industry reviewers track execution quality metrics; review your broker's execution quality reports.

Neutral note: PFOF does not automatically mean poor execution, but it is a factor to understand when evaluating how to buy stocks for free.

Spreads, markups, and odd‑lot/extended‑hours pricing

• ETFs and stocks with low liquidity can have wider spreads that increase cost even at $0 commission.
• Fractional share executions and extended‑hours fills may be priced differently than regular session prints.
• For very small or odd‑lot orders, execution venues might report slightly different pricing; check trade confirmations.

Account and non‑trade fees

Common potential fees to watch for:

• Outgoing transfer (ACAT) fees when moving accounts.
• Broker‑assisted trade fees for telephone orders or special requests.
• Margin interest for borrowed funds.
• Options contract or assignment/exercise fees when trading options.

Many modern brokers minimize or waive many of these, but fee schedules vary — always check the current fee table.

Regulatory and exchange fees

Small regulatory fees (SEC sale transaction fees, FINRA TAF) may apply on certain sell transactions. These are not broker commissions but pass‑through fees from regulators/exchanges.

Promotional limitations and tax consequences

• Free shares awarded as promotions are taxable: their fair market value is reportable as ordinary income when granted and will create a cost basis for future sale.
• Some promotions restrict selling free shares for a holding period — read the T&Cs.

Comparison of common brokers and apps (examples)

Below is a neutral, high‑level comparison of commonly referenced providers in industry guides (as of 2026-01-15). This is informational, not a recommendation.

• Broker A: $0 online commissions for US stocks/ETFs, fractional shares, strong mobile UX, basic research tools. Often highlights promotions or free shares for new accounts.
• Broker B: Full-service broker with $0 online commissions for equities, advanced research, and robust desktop platform; good for long‑term investors who value research.
• Broker C: Mobile-first app with $0 commissions and easy fractional recurring investments, geared to beginners.
• Broker D: Bank‑broker hybrid offering a limited number of free trades as a perk for deposit balances.

Industry sources (CNBC, StockBrokers.com, The Motley Fool, NerdWallet) publish detailed, frequently updated comparison tables; check those sources and each broker's disclosures as of 2026-01-15 before deciding.

Note: For users wanting a platform that also supports crypto and Web3 wallets, Bitget offers integrated services and Bitget Wallet provides Web3 custody and interactions — useful if you plan to manage both crypto and equity exposures with a single ecosystem.

Best practices and investor protections

Check fine print and fee schedules

Always review the broker's pricing, order execution policy, and promotional terms before opening an account. Fine print often contains exceptions that matter.

Security, SIPC/FDIC coverage, and account types

• SIPC protection: protects against broker failure up to specified limits for securities and cash claims; it does not protect against market losses.
• FDIC coverage: applies to bank accounts and sometimes to cash sweep programs used by brokers (check whether sweep accounts are FDIC insured).
• Choose the appropriate account type (taxable vs IRA) based on your goals and tax situation.

Diversification, fractional shares, and cost averaging

Fractional shares and recurring investments can make diversification and dollar‑cost averaging inexpensive and accessible even when buying individual stocks. Use commission‑free ETFs as an alternative for broad diversification.

Monitoring execution quality and reviewing statements

Periodically review trade confirmations and monthly/annual statements to verify fills, fee assessments, and dividend treatments. Compare quoted prices to fill prices and report any anomalies to the broker.

Taxes and reporting

• Selling shares triggers capital gains or losses; short‑term gains are taxed at ordinary income rates, long‑term gains at preferential rates depending on your jurisdiction.
• Dividends are taxable when received (qualified vs non‑qualified rules may affect rates in the US).
• Free shares awarded through promotions are generally taxed as ordinary income equal to the fair market value on the grant date; platforms will include this in year‑end tax forms (Form 1099 in the US).

Keep precise records of purchase dates, amounts, and the fair market value of promotional shares for accurate tax reporting.

Alternatives to "buying stocks for free"

If your goal is low cost rather than strictly zero commission, consider:

• Robo‑advisors: typically charge a low management fee but handle diversification and rebalancing.
• Commission‑free ETFs and mutual funds: provide diversified exposure without per‑trade commissions.
• Direct DRIPs or direct purchase plans from companies that offer low‑cost direct investing.

Each alternative has trade‑offs in control, cost transparency, and services provided.

Market context (selected news references)

As of 2026-01-15, markets have continued to evolve under macro influences and trading dynamics reported in industry news. For example:

• Barchart analysis (reported as of early 2026) discussed options activity and probabilistic trade frameworks around specific names, illustrating how derivatives trading and unusual activity can indicate directional expectations in the short term. That coverage highlights the importance of execution and timing when moving from a commission‑free purchase to more advanced strategies.

• Market commentary in early 2026 noted that some beaten‑down stocks can show mean‑reversion behavior absent new negative information. This informs why long‑term investors may use fractional buying or DRIPs to accumulate attractively priced shares without incurring visible commission costs.

• Broader market data (jobs reports, Fed expectations, sector rotations) can change liquidity and spreads; these conditions affect the practical costs when you consider how to buy stocks for free. As of 2026-01-15, sources like Reuters and market briefings reported on US payrolls and sector performance that influence execution and volatility.

All such news is presented as factual market context and not as investment advice.

Frequently asked questions (FAQ)

Q: Is "free" truly free? A: Not always. "Free" commonly means $0 commission on a U.S. stock or ETF online trade, but other costs (spreads, regulatory fees, transfer fees, margin interest) can apply.

Q: Are promotional free shares taxable? A: Yes. Free shares from sign‑up promotions are typically taxable as ordinary income equal to the fair market value when awarded; they also establish your cost basis for later sales.

Q: Can I buy fractional shares for free? A: Many brokers offer fractional shares with $0 commissions, but execution mechanics differ; check the broker's fractional trading policy and execution disclosures.

Q: Will a free trade be executed at the same price as a paid trade? A: Price depends on market conditions, order type, and routing practices. A $0 commission trade can still experience price difference due to spreads or routing.

Q: How often should I check execution quality? A: Periodically — for example quarterly — compare a sample of your trade fill prices vs market prints and review your broker's execution quality reports.

See also

• Payment for order flow (PFOF)
• Fractional share investing
• Dividend reinvestment plan (DRIP)
• How to buy stocks (general)

References and further reading

• CNBC — Best Commission‑Free Stock Trading Platforms (as of 2026-01-15). Reported industry comparisons and annual updates.
• Robinhood — Platform disclosures and commission policy (referenced for zero‑commission trend illustrations).
• StockBrokers.com — 5 Best Free Trading Platforms (industry review, 2026 edition referenced).
• The Motley Fool — Best Free Stock Trading Apps (2026 roundup referenced).
• Bankrate — How To Get Free Stocks: common promotion mechanics (2026 update).
• NerdWallet — How to Buy and Sell Stocks; Best Brokers for Commission‑Free Trading (2025–2026 guides referenced).
• E*TRADE — product and pricing disclosures (illustrative of zero‑commission incumbent brokers).
• U.S. Bank — example of free trade perks bundled with banking (promotion mechanics referenced).
• Barchart — options and market behavior analyses (examples from early 2026 used to illustrate market context).
• Reuters — market and macro reporting cited for jobs data and Fed expectations (early 2026 context).

All references were reviewed as of 2026-01-15 for context and accuracy. Verify current details on each provider's official disclosures before acting.

External resources (regulatory)

• U.S. Securities and Exchange Commission (SEC) investor education pages on order execution and broker protections (recommended reading before choosing a broker).

Final notes and next steps

If your immediate goal is to learn how to buy stocks for free with minimal friction:

1. Choose a broker with $0 commissions, fractional shares, and transparent execution policies.
2. Open and fund an account, following promotion terms if you plan to claim free shares.
3. Start with a small test trade using limit orders to learn execution behavior.
4. Use DRIPs or recurring investments to build positions cost‑effectively.

Explore Bitget features and Bitget Wallet for integrated management if you also plan to manage crypto and Web3 assets alongside equities. For more detailed platform comparisons and up‑to‑date promotions, consult the brokers' current disclosures and the industry guides listed above.

Further exploration: keep this article's update date in mind — broker fees, promotions, and market conditions change frequently. Verify the latest pricing, tax forms, and terms before trading. This article is informational and not investment advice.