![]() įractional shares are especially important for teenagers, who are likely investing only a few hundred or thousand dollars. Fractional shares allow you to purchase stocks based on the dollar amount you want to invest, so you may end up with a fraction of a share, a whole share, or more than one share” – Schwab. “A fractional share is when you own less than one whole share of a company. Īnother huge benefit that Stockpile provides is fractional shares. If you want to learn more, you can read my full review of Stockpile here. The only difference being that your custodian has to press “approve” for a trade to execute. Additionally, you can connect your bank account (if you have one) so that your custodial account is just like a regular investment account. Once you’ve purchased stock(s), you can track their price throughout the day and watch your money grow over time. ![]() Then they can Either approve or deny the request. Finally, your custodian will receive an email notifying them of your request. Once you’ve found and researched a stock to invest in, you can click “buy” and decide how much money to invest in it. Once your account is opened and funded, you can browse the thousands of stocks and funds Stockpile has listed. Then you can connect your bank account (or your parents) to the custodial account. How it works is while you and one of your parents are setting up your custodial account, you’ll create a separate login attached to your email. This means that you can decide what stocks to buy and sell with the approval of your parents. Stockpile’s most significant advantage over other brokerages is that it gives minors a separate login. Stockpile’s best feature is that it gives you a separate login, allowing you to conveniently monitor your investments over time. Using Stockpile, you can learn about what stocks are, how the market works, and make purchases with your custodian’s approval. What sets Stockpile apart is that it’s designed to help kids and teenagers learn about and invest in the stock market. This post will go over the three best brokerages based on my experiences and research. However, before you start doing any of that, you have to choose a brokerage to open a custodial account with. With approval from your custodian (the adult you set up your account with), you can buy, sell, and own stocks. Having a custodial account allows you to invest in the stock market, even as a teenager. ![]() Approval from the custodian is mandatory for the account to conduct transactions, such as buying or selling securities” – Investopedia. “The term custodial account generally refers to a savings account at a financial institution, mutual fund company, or brokerage firm that an adult controls for a minor (a person under the age of 18 or 21 years, depending on the laws of the state of residence). What is a custodial account?Ī custodial account is an account that allows kids and teenagers (minors) to invest in the stock market. That being said, all of the information in this article is applicable to both parents, and minors. I also want to start by saying that this article is meant for teenagers who want to be involved with their investments and choose the best brokerage to do that. There is no perfect brokerage that is the best option for everyone the right brokerage for you depends on your situation and priorities. In this post, I’m going to be ranking the best custodial accounts for teenagers in 2021!Ĭhoosing the right brokerage to open a custodial account with is an important, and often overlooked part of investing as a teenager.
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