How Old Do I Have to Be to Invest in Stocks?
Updated July 21, 2023
You can be any age to invest in stocks but there is a catch — you have to buy or sell stocks under the supervision of your parent or other adults through what’s called a custodial account. (More information here for your parents:
Basics of Custodial Accounts
Custodial accounts are accounts for minors (generally those less than 18 years old) set up by parents, guardians, and other adults. Custodial accounts are important because they are the only way for minors to enter into any financial transactions such as opening bank accounts or buying stocks through online brokers.
Your parent/guardian or any adult that opens the account for you has control of it until you are between the age of 18 and 25 (depending on your state of residence and the type of account). In legal terms, your parent would be the custodian of the account and you would be the beneficiary of the account.
Incidentally, many parents use custodial brokerage accounts as a way to teach their kids how to invest in the stock market. If you’d like to know how you can easily learn to invest in stocks and exchange-traded funds, go to the TeenVestor Stocks Certification Course.
Opening Custodial Brokerage Accounts
To invest in the stock market, your parent (or any adult for that matter) can open up a special type of custodial account — the custodial brokerage or investment account. You may hear about the UTMA or UGMA variety of these accounts but the one your parent will choose generally depends on the state you live in.
Opening a custodial brokerage account through which you can buy stocks (under your parent’s supervision) is easy. We have more information here for your parents on custodial brokerage accounts: Custodial Brokerage Accounts for Your Kids.
To open an account, your parent would only need to submit an application which may require some or all of the following information:
Your contact information, birth date, and Social Security number.
Your parent’s driver's license number (if he or she has one).
Your parent’s Social Security Number.
Your parent’s employer's name and address (if applicable).
Your parent’s bank information so they can move money into the custodial brokerage account to be used for buying stocks.
Important Features of Custodial Brokerage Accounts To Look for
The things you have to look for when searching for an online broker include:
No stock trading fees – you should find online brokers that charge $0 to buy and sell stocks.
Low balance stock trading accounts – make sure the online broker does not require you to maintain a sizeable minimum balance in a trading account; there are many that offer $0 minimum balance.
Brokers that allow for fractional shares – if you want to invest as little as $1 in reputable companies with high stock prices, you can only do so if the online broker allows you to buy fractions of a share of stock.
Low or no monthly fees for signing up or for maintaining your account.
Custodial Brokerage Accounts Appropriate for Teen Investors
Here is a short list of a few of the custodial brokerage accounts brokers that are best for very young investors.
Fidelity Youth Account (not quite a custodial account but close enough)
Greenlightcard (charges monthly fees)