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Acorns Early / Custodial Accounts for Kids
Acorns Early is a custodial account that makes saving and investing for your child or any child in your life easy.
- Get started with $5 and set up recurring daily, weekly, or monthly investments.
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Ally Invest Robo Portfolios / Automated and Managed Investing
Ally Invest Robo Portfolio is a hands-off and automated investment service that creates and manages a diversified portfolio based on your financial goals and risk tolerance.
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Ally Invest Self-Directed Investing / $0 Commissions and No Account Minimum
Ally Invest Self-Directed Investing is an online brokerage account for trading stocks, bonds, ETFs, mutual funds, and options. No account minimums and $0 commission trades.
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E-Trade / Online Brokerage with $0 Commissions
E-Trade is an online brokerage account for frequent traders to buy and sell stocks, bonds, ETFs, mutual funds, options, and futures. No account minimums and $0 commission trades.
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Fidelity Investments / Full-Feature Online Brokerage with $0 Commissions
Fidelity Investments offers a self-directed online brokerage account for investors to trade stocks, bonds, ETFs, mutual funds, options, and fractional shares with no account minimums and $0 commission fees.
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M1 Finance / Self Directed Investing for Long-Term Goals
M1 Finance is an online brokerage that offers investors a pie-based approach to long-term investing.
- $0 account minimum. 100% commission-free trades and no hidden fees.
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Stash Invest / DIY Investing and Robo-advisor Portfolios for Beginners
Stash Invest is a robust investing app that allows you to start and grow your investments in stocks, ETFs, and fractional shares for as little as $5.
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Stockpile / Investing App Where Parents and Kids Invest Together
- Stockpile is an online brokerage helping parents and children invest together.
- No account minimums, zero-commission fees, and ability to purchase gift cards.
What is a custodial account?
A custodial account allows a parent, guardian, or other family members/friends to open an investing account for a minor. A minor’s age varies by state laws.
The custodian (adult) manages the money and investments until the minor reaches the “age of majority.” That age is usually 18 or 21 years old, depending on the Custodian’s state.
What happens when the child reaches the age of majority?
After reaching the age of majority, the minor assumes control of the account and can do as they wish with the funds.
Can the money be used before the age of majority?
In a custodian account, the parent or legal guardian can use the money for a purpose that benefits the child. This includes:
- Paying for education (preschool, secondary, private)
- Clothing and supplies
- Activities (sports, instruments, etc)