Robinhood does not allow investing for those under 18. Investing as a minor requires opening what is known as a custodial accounts. Loved lets you invest for anyone under 18, commission-free.9 Jan 2020
Can you invest in stocks with a custodial account?
Once the custodial account is open and funded, the real fun begins: Investing the money. Within their brokerage account, your kids will be able to invest in individual stocks, as well as mutual funds, index funds and exchange-traded funds.6 Jan 2022
What trading apps allow custodial accounts?
- Best Overall: Charles Schwab. Sign Up Now.
- Best for College Savings: TD Ameritrade.
- Best for Custodial Bank Accounts: Ally Bank.
- Best for Teaching Kids About Investing: Stockpile.
- Best for Mutual Funds: Vanguard.
- Best Robo-Advisor: FutureAdvisor.
- Best Research Resources: Fidelity.
- Most Established Online Broker: E*TRADE.
Can you have a Robinhood account under 18?
Practically: Yes. Legally, you have to be over 18 to open a trading account. But here's what you can do: Ask your parent to open an account in their name, and then have them give you the password, trade, and then export the profits to your bank account.
Can you buy stocks in a custodial account?
There are two main types of custodial accounts. The Uniform Gift to Minors Act (UGMA) allows minors to own gifts including cash, stocks, bonds, mutual, funds, and securities.
Can you invest in Robinhood with a custodial account?
Robinhood does not offer UTMA/UGMA custodial accounts. As an alternative, we suggest a brokerage firm called TD Ameritrade that offers UTMA/UGMA custodial accounts as well as $0 commission on stocks, ETFs, and other investment classes. There are no account fees whatsoever.
What can a custodial account be used for?
A custodial account can be an excellent way to make a financial gift to a child—whether your own, a relative's, or a friend's. This type of account, established under the Uniform Gifts to Minors Act (UGMA) or the Uniform Transfers to Minors Act (UTMA), is set up by an adult for the benefit of a minor.
Can I open a stock account for my child?
To start investing in stocks on their own, your kid will need a brokerage account, and they must be at least 18 years old to open one. They can start earlier than this, but they'll need a parent or guardian to open a custodial account for them.6 Jan 2022
Does Robinhood have parental accounts?
The short answer: NO. Robinhood does not offer custodial accounts and many similar apps do not either. Adults on the other hand have many options - from free investing via Robinhood, to investing platforms like Stash and Acorns as well as roboadvisors like Wealthfront and Betterment.15 Oct 2020
How does a custodial account work for investing?
A custodial account is a means by which an adult can open a savings account for a child. The adult who opens the account is responsible for managing it, including making investment decisions, and deciding how the money is to be used, so long as it benefits the child in some way.