In this guide

How to Buy Bank of America Corporation (BAC) Stock for Beginners in 2024

Q: Is Bank of America stock overvalued?

There is no perfect way to value a stock. You can use financial metrics like the P/E ratio to compare share prices among Bank of America and its competitors, where a higher ratio indicates that a stock is more expensive. But lots of different factors play into Bank of America’s share price and the ‘right’ valuation is often a matter of opinion.

Q: Do I have to pay capital gains tax on any profits I make?

It depends on where you live but you do normally have to pay capital gains tax any time you make money from investing in Bank of America. Capital gains tax is often charged at 10-15% of your profit but there are ways to limit the amount you have to pay, by using tax-friendly stock market investment vehicles and writing off losses. Speak to an accountant or a tax professional and check the tax laws where you live to find out more.

Q: What is Bank of America’s ticker symbol?

Bank of America’s ticker symbol is NYSE:BAC. A ticker symbol, or stock code, is a publicly traded company’s unique identifier so that you can find them on stock exchanges.

Q: Does Bank of America pay dividends?

Yes, Bank of America pays a cash dividend. Dividend payments are made on a per share basis, so the more shares you own the more you receive in dividends. Cash dividends are normally paid directly into your trading account and some brokerage services allow you to reinvest dividends automatically.

Q: Is Bank of America ESG friendly?

Bank of America is a medium-risk ESG stock, according to SustainAnalytics. The bank ranks in the middle of all banking stocks, but above competitors like JP Morgan Chase and Wells Fargo.

Use our step-by-step guide to learn how to buy BAC stock, make an investment for the first time, and compare the best Bank of America Corporation trading platforms for beginners.

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Updated: Aug 14, 2024

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With technology today, you can buy BAC stocks from the comfort of your home. Bank of America (BAC) stocks are available through many online brokers, and it usually takes just a few minutes to buy shares in BAC when following our step-by-step guide.

In order to make an investment in Bank of America Corporation for the first time, you need to consider several important factors: is now the right time for me? how much should I invest? which trading platform is best for me? Furthermore, you’ll want the lowest fees, a user-friendly interface, and access to a wide range of other stocks.

That’s why we’ve compared the best places to buy Bank of America Corporation stocks. Our broker comparison below helps you make an informed decision on the best way to invest in Bank of America Corporation.

Let’s begin with where to get started, before moving onto setting up an account, and then placing your first Bank of America Corporation trade.

Where to buy Bank of America Corporation stock?

Based on our research, the best stock trading app to buy Bank of America Corporation stock is eToro .

We’ve ranked the top five brokers where you can buy Bank of America Corporation shares according to how easy they are to use, how low their fees are, their safety and security rating, and average customer reviews.

We found 4 online brokers for users based in

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How to buy stock in Bank of America Corporation in 3 steps

Buying Bank of America Corporation stock is quick, all you need is an internet connection, a copy of your photo ID, and the amount you wish to invest. Here’s how to do it.

Step 1. Sign up to an online broker

Our rankings suggest that eToro is the best stock trading platform for beginners.

When you sign up, you’re prompted to fill in your details to create an account, as you would with any online account creation process.

After that, you need to send a copy of your ID to verify the account before you can use it. This is because stock brokerages are required by law to comply with financial regulations, and these demand each customer confirm their identity before they can buy and sell shares on the stock market.

Step 2. Make a deposit

You can’t invest in Bank of America Corporation stock without any money in the account, so next you have to fund your trading account.

Head to the ‘bank’ or ‘account’ section of your dashboard and select the ‘deposit’ option. Transfer money to your new account via a debit or credit card, bank transfer, or an alternative payment method, like PayPal.

You can add as much as you like as long as you meet the minimum deposit threshold, which might be as low as $10, but is usually around $50-100 depending on your country of residence.

Top tip: consider how much you want to actually invest and over what period. You might need to deposit $200 or so in order to afford the shares, or $1,200 if you’re investing $100 per month for 12 months, for example.

Step 3. Buy Bank of America Corporation stocks

With funds now in your account, it’s time to make your first investment, aka place your first trade.

Search for Bank of America Corporation using the ticker symbol, BAC. Click the ‘trade’ button and enter the details of your investment, such as how many shares you want to buy or how much you want to spend.

Having entered the amount, you’ll see all the details of the trade to confirm its what you expected. Once ready, hit the ‘trade now’ button to invest in Bank of America Corporation, completing your purchase.

It’s as easy as that! You can buy Bank of America Corporation shares in just 10-15 minutes and now you’re a Bank of America Corporation shareholder.

Top tip: remember though, the process is easy, but making money can be much harder. You still need to do lots of fundamental research, create a budget, and design a strategy that’s suitable for you.

Compare the best platforms to buy Bank of America Corporation stock

We found 4 online brokers for users based in

1. eToro. Best for beginners, copy-trading & demo-account

Visit site

0% commission

Fees

$…

Minimum deposit

1500

No. assets

Yes

Demo/virtual account

Pros & Cons

Great for beginners, simple to set up and get started Competitive, industry-leading commissions Popular ‘Copy Portfolios’ function lets you follow top traders Excellent customer service, with live chat support provided

Comparatively high fees for withdrawals and account inactivity Does not integrate with the MetaTrader platform High spreads on some assets

Overview

We love eToro because it’s a trading platform built with beginners and casual traders in mind. The platform combines an interactive, social trading experience with an easy-to-use interface, making it ideal for novice traders.

The far-reaching catalog of more than 5,500 stocks and ETFs includes big names like Apple and Tesla, as well as smaller companies with high growth potential. You can start trading with as little as $10 using fractional shares if you’re on a tight budget.

One feature we particularly appreciate is the ability to interact with eToro’s 35 million users on any asset, market, or portfolio page. If you find traders whose strategies match your risk tolerance, you can copy their portfolios automatically using eToro’s flagship copy trading functionality. This is a great way to learn and potentially benefit from the expertise of more experienced traders.

If you don’t feel comfortable investing your cash straight away, you can use a free demo account, credited with $100,000 virtual dollars. This offers plenty of opportunities to try out a trading strategy that works for you across stocks, crypto, and options trading markets.

Highlights

Features	eToro summary
No. of tradable assets	3600+
Min. Deposit	$100
ID verification required	Yes
Free demo account	Yes
Supported assets	Stock CFDs, ETF CFDs, Forex CFDs, Crypto CFDs, Index CFDs, Commodity CFDs, NFTs
Mobile trading app	Yes
Web trading platform	Yes
Regulatory bodies	ASIC, FCA, CySEC, FinCEN
View more >	eToro >

Visit eToro eToro Review

2. Plus500. Best for international trading*

Visit site

From 0.08%

Fees

$…

Minimum deposit

2800

No. assets

Yes

Demo/virtual account

Pros & Cons

Free demo account for every user Secure broker, licensed by top-tier regulators Wide variety of CFDs to trade Several good risk management tools

No support on trading information and education Website isn’t brilliantly designed to help users find answers to their questions No MetaTrader trading platform compatibility

Overview

We love Plus500 because it is one of the industry’s most transparent and reliable brokers. Its fees are clear and you’ll know exactly what you will be paying before you make a trade. Its technology driven platform gives access to futures contracts for some of the biggest indices.

Plus500 has something for all types of traders, no matter what level of experience. Its low margin requirements (starting at $100) and different contracts make it a top choice for day traders. At the same time, its trading academy is packed with educational content, perfect for beginners just starting.

One of the features we like most about Plus500 is its bonuses. Not only does it have a low minimum deposit of $100, but you’ll also have the option to receive a bonus the first time you add funds to your account, so you can stretch your money a little further.

For accurate instrument availability, visit plus500.com.

The fees: Plus500 charges a commission of $0.49 per Micro contract and $0.89 per Standard contract (per side). There is an Auto-Liquidation fee of $10 per contract. Other exchange fees may be applicable and can be found on the CME group website.

*Based on a comparison of 60+ leading brokers and trading platforms.

Highlights

Features	Plus500 summary
No. of tradable assets	2800+
Min. Deposit	$100
ID verification required	Yes
Free demo account	Yes
Supported assets	Stock CFDs, ETF CFDs, Forex CFDs, Crypto CFDs, Index CFDs, Commodity CFDs
Mobile trading app	Yes
Web trading platform	Yes
Regulatory bodies	FSA, ASIC, FMA, FCA, CySEC
View more >	Plus500 >

Visit Plus500 Plus500 Review

3. Public. Best for AI analysis

Visit site

Spreads

Fees

$…

Minimum deposit

9,000

No. assets

Demo/virtual account

Pros & Cons

Commission free stock and ETF investing Share and compare your portfolio on a social trading platform Trade crypto, fractional shares, and alternative investments

You can’t trade on margin or use leverage No forex, options, funds, metals, or bonds

Overview

We love Public because it makes use of cutting-edge AI technology to enhance your trading and investing experience. Public’s AI-powered feature, Public Alpha offers personalized insights and recommendations through its natural language interface in real time.

Public’s AI technology helps you make more informed decisions by analyzing massive amounts of data and providing actionable insights. These AI-driven insights are easily accessible and give users access to the latest advancements in financial analysis and trading.

Not only do can you use AI to help your investments, Public is one of the lowest cost brokerage firms out there. You can invest in stocks and ETFs commission free. You can also buy and trade fractional shares and if you want to diversify, you can explore a range of alternative investments including music and film royalties.

The fees: There are no fees for investing in stocks during regular trading hours in the US – 9.30am-4pm EST. There is a $2.99 fee for trades outside of regular hours.

Highlights

Features	summary
No. of tradable assets	9,000 +
Min. Deposit	$20
ID verification required	Yes
Free demo account	No
Supported assets	Stocks, ETFs, Cryptocurrencies, Options, Bonds, Royalties
Mobile trading app	Yes
Web trading platform	Yes
Regulatory bodies	SEC, FINRA, SIPC
View more >	>

Visit Review

What are the fees for investing in Bank of America Corporation stock?

It depends on the stock broker. Some platforms charge a flat fee per trade, others charge a commission as a percentage of the total trade value each time you buy Bank of America Corporation stocks. These can range anywhere from $0.10 per trade, right up to 3% of the total amount you’re investing.

Consider that there may be other costs to trading too. Other fees can include deposit and withdrawal fees, or inactivity fees if you don’t use your account for three months or more.

These are the trading platforms that charge the lowest fees for buying stocks in Bank of America Corporation.

Asset	eToro fees	Plus500 fees	Public fees
Cryptocurrencies	1%	From 2%	1-2% (spread)
Commodities	From 2 pips	From 0.04%	–
Currencies	From 1 pip	From 0.8%	–
Indices	From 0.75 pts	From 0.7%	–
Stocks	0% commission	From 0.08%	Spreads
Stock CFDs	0.15%	–	–
ETF CFDs	0.15%	–	–
View more >	eToro >	Plus500 >	Public >

Are there other ways to invest in Bank of America Corporation?

Yes, you can invest in Bank of America Corporation stock in a few different ways. One option is to buy stock in Bank of America Corporation directly through an investment platform as laid out above, while another popular choice is to invest in a fund.

A fund buys stocks in lots of companies on your behalf, to create a diversified portfolio of different assets. Diversified portfolios are typically considered safer than investing in a single stock, because their values fluctuate at different times and their peaks and troughs can balance out.

Many of the best index funds contain Bank of America Corporation, while another option is to invest in an ETF. ETFs are similar to funds, except rather than someone choosing what to invest in, it buys stocks automatically according to a set of guiding principles. Bank of America Corporation is a popular choice in many of the top performing ETFs.

A third option is to use a social copy trading platform, like eToro . Find a trader who you like and copy their Bank of America Corporation trades directly to your own account.

This can be a good investment strategy for beginners and a way to learn how to buy Bank of America Corporation shares from someone with more experience.

How to sell Bank of America Corporation stock

When you decide the time is right to sell and lock in some profit (or cut your losses), the process is pretty much the same as having purchased the stock. The steps are as follows:

Log into your broker account and navigate to your portfolio.
From there, find your Bank of America Corporation stock and you’ll see a ‘sell’ option next to it.
Click that to set the details of the trade. You don’t have to sell all your stocks at once, you could choose to sell half for example.
Once you’ve decided accordingly, click the ‘sell’ or ‘close’ button to sell back to cash.

Should I buy Bank of America Corporation stock now?

It’s your investing goals and style that define whether now is a good time to buy. The current Bank of America Corporation stock price plays into it but ultimately it depends on your investment horizons.

If you’re a short term trader: the goal is to make money by buying and selling stocks regularly to secure a profit or avoid a loss. That can mean trading hourly, daily, or weekly but the focus is always on the near future. Traders learn how to buy stocks in Bank of America Corporation based on short term technical analysis and don’t hold shares for a long time, so any time can be a good time to buy Bank of America Corporation.
If you’re a long term investor: you’re more interested in long term price appreciation than whether a stock is up or down on any given day. The important thing is finding a stock with a strong foundation where you think the share price will be up over a period of months or years. If you think Bank of America Corporation’s fundamentals are solid then the best time to invest in Bank of America Corporation stock is after a dip or a pullback in price.

Most new traders sit somewhere between these two positions. Many investors don’t want to actively trade Bank of America Corporation stock all hours of the day, but nor do they want to wait years for a return either.

Top tip: investing small amounts regularly (known as Dollar-Cost-Averaging (DCA)) over a long period of time is proven to be the most successful investing strategy for normal people without trading skills.

Either way, following Bank of America Corporation price news and analysis will help you decide when to dip your toe into the market.

Fundamental analysis of Bank of America Corporation shares

Overall, BAC is -100.00% over the last week. The BAC share price is -100.00% in 2024 so far.

Is Bank of America a good investment for me?

The right answer is different for each person, so here is some information to help you decide whether to buy stocks in Bank of America.

Bank of America is one of the oldest banks in the United States. The bank has been around in some form since 1904. It’s one of the Big Four banks, along with JP Morgan Chase, Citigroup, and Wells Fargo, and it’s second only to JP Morgan Chase in terms of size.
The bank has strong financials and a diverse range of products. Large banking institutions are forced to maintain large capital reserves and to limit risk. That offers downside protection, while a range of mortgage, personal and business loans, and investments mean that there are plenty of ways for Bank of America to make money in any economic climate.
High interest rates make for larger margins on loans. The Federal Reserve has been raising interest rates to combat high inflation, which means that banks raise their own rates on loans. Higher rates allow for a larger gap between the interest they charge on loans and the interest they pay on deposits, which is one way Bank of America makes money. Obviously, this works both ways: if rates reduce, the profitability may be impacted.
There’s the potential for dividend growth. Bank of America regularly pays out a dividend, and is likely to increase it if the underlying financial position continues to improve. Financial or banking stocks are often good, stable prospects for dividend investors.
The financial sector can add diversity to your portfolio. Large investment bank stocks offer lower prospects for growth but fewer prospects of large losses than companies in growth industries like tech. Including some financial stocks and earning dividends from them can help sustain your portfolio in tricky economic times.
Bank of America is just one of many Wall Street banks. The rest of the Big Four, along with other major financial institutions, like Goldman Sachs, are locked in intense competition for customers. That competition can cut margins and impact profitability over the long term.
The financial sector is heavily regulated. There is no chance of Bank of America ever coming to dominate the sector or generating large profits through risky speculation. There’s also the chance that banks could experience further regulation which cuts into their profit margins.

It’s always a good idea to think about any potential risks there might be as well. Use this summary of Bank of America’s pros and cons before you make a final decision on whether to buy Bank of America stock.

Pros

A well-established bank with reliable revenue streams
Higher interest rates mean higher margins
A healthy dividend yield and the potential for growth

Cons

Interest rates may start to fall
Lots of competition for customers from other Wall Street banks
More regulation is always a possibility

FAQs

Is Bank of America stock overvalued?

Do I have to pay capital gains tax on any profits I make?

What is Bank of America’s ticker symbol?

Does Bank of America pay dividends?

Is Bank of America ESG friendly?

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Sources & references

Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.

Risk disclaimer

James Knight

Editor of Education

James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.

In this guide

How to Buy Bank of America Corporation (BAC) Stock for Beginners in 2024

Where to buy Bank of America Corporation stock?

How to buy stock in Bank of America Corporation in 3 steps

Step 1. Sign up to an online broker

Step 2. Make a deposit

Step 3. Buy Bank of America Corporation stocks

Compare the best platforms to buy Bank of America Corporation stock

1. eToro. Best for beginners, copy-trading & demo-account

2. Plus500. Best for international trading*

3. Public. Best for AI analysis

What are the fees for investing in Bank of America Corporation stock?

Are there other ways to invest in Bank of America Corporation?

How to sell Bank of America Corporation stock

Should I buy Bank of America Corporation stock now?

Fundamental analysis of Bank of America Corporation shares

How has Bank of America Corporation’s share price performed in recent years?

Is Bank of America a good investment for me?

Pros

Cons

FAQs

More stocks to buy