Top 10 Custodial Brokerage Accounts for Minors
Updated July 21, 2023
Top 10 Custodial Brokerage Accounts
Overall, the best custodial brokerage accounts for minors are listed below. We explain our criteria for putting this list together at the end of this short article.
Putting Custodial Accounts to Use
Custodial brokerage accounts are great but parents should teach their kids how to invest in stocks at the same time. If teens want to know how to invest using a custodial brokerage account, check out our course at this link ( TeenVestor Stock Certification Course) or click on the image below.
With our course, teens can start building wealth now by learning how to steadily invest over a long period of time. And they will also understand that investing can be risky.
In short, we can provide them with investing training wheels!
How To Open Custodial Accounts
As you know, minors (generally those less than 18 years old) can only invest through custodial accounts — specifically custodial brokerage accounts. These accounts are generally set up by parents but the assets in the accounts belong to the minors. For more information about how parents can open custodial brokerage accounts for their young investors, please go to this link: How To Open Custodial Accounts.
MOTHER AND SON
Explaining Our Criteria for The Top 10
In choosing the top 10 companies that offer custodial brokerage accounts we use the following critera:
Companies that charge very little (if anything at all) for buying and selling stocks
Companies that don’t require a large minimum balance in the brokerage account before being allowed to buy and sell stocks
Companies that allow the owner to buy fractions of a share of stock (so that a broke young investor can invest as little as $5 to buy a fraction of any stock)
Our top 10 list is a combination of 1) well established companies that offer custodial brokerage accounts (companies 1-5 on the list) and 2) newer companies (companies 6-10 on the list) that specifically target young investors or parents who want to encourage their teens to invest.
We put these companies in this order because nearly all the traditional companies are well established so they will likely be around for a long time. We are not necessarily saying that these companies are better that the newer companies that offer custodial brokerage accounts.