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How to Buy an ETF for the Very First Time: Step by Step

5 min readCompound

Key takeaways

Buying an ETF for the first time takes just a few minutes — all you need is a broker account, choose a fund, and press the button.

What you will need

Before you start, you need three things: a verified investment account with a broker, funds in your broker account (a few hundred CZK is enough), and the name or ticker of the ETF you want to buy. Not sure how to choose a broker? Read how to choose a broker from the Czech Republic.

Step by step: from login to purchase

Tip: On your very first purchase, try buying just 1 share. You'll go through the whole process without stress and without much risk. Next month you can add more.

What is a market order and why use it

A market order tells the broker: "Buy at the best available price right now." It is the simplest to understand. There is also a limit order — it says "buy only if the price drops below X." That is for more experienced investors. As a beginner you don't need it.

What happens after the purchase

The transaction settles within two business days (T+2). The money disappears from your cash balance and the ETF appears in your portfolio. From that moment your fund rises and falls together with the thousands of companies in the index. For a more detailed look at choosing a fund, see the article how to choose your first ETF.

FAQ

Do I have to buy a whole share of an ETF, or can I buy a fraction?

It depends on the broker. Some allow you to buy so-called fractional shares, so you invest an exact amount in CZK or euros. Other brokers require a whole share. Check your broker's terms and conditions.

What is the best day or time to buy?

For a long-term investor it doesn't matter much. Stock exchanges are open Monday to Friday roughly from 9 a.m. to 5:30 p.m. CET. Avoid the very first and last minutes of trading, when prices tend to be less stable.

What should I do if the purchase fails or doesn't appear in my portfolio?

First wait a few minutes — systems can have short delays. If the ETF is not in your portfolio after an hour, check the "Orders" section. If you see the status "Pending," the order has not been executed yet. If in doubt, contact your broker's support.

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