Can a minor open a brokerage account?

Like traditional brokerage accounts, many of these investment tools provide a way to buy and sell stocks, bonds, exchange-traded funds (ETFs), and other instruments. Because minors are not eligible to open their own brokerage accounts, parents and guardians can open and manage custodial accounts in a child's name.

What is a custodial brokerage account for minors?

Custodial brokerage accounts for minors provide parents and guardians a way to begin building the child's financial future while overseeing investment activity until the child reaches the age of majority. They can also be a valuable tool in teaching the child about investing.

Should a child open a brokerage account?

Helping your kid open an investment account can teach them valuable lessons about money and the power of investment growth. Depending on their restrictions, brokerage accounts for children are often called custodial accounts and labeled as UGMA or UTMA.