Teaching teenagers about the market early on can be one of the best financial lessons a parent passes on, and both Fidelity and Charles Schwab have accounts built specifically for the job.
The Fidelity Youth Account, an individual brokerage account for teens, lets teens ages 13 to 17 invest in most U.S. stocks, ETFs, Fidelity mutual funds and fractional shares, with no account or subscription fees, plus no minimum deposit requirements. The teenager is the owner on the account.
Newer on the scene, the Schwab Teen Investor Account is a joint brokerage account for teens (also ages 13 to 17) and their parent or legal guardian with a similar fee-free structure. With Schwab, teens can trade stocks, ETFs, mutual funds and fractional shares.
Here’s how the two options stack up against one another, including a look at their investment options, fees, parental controls and educational tools.
Fidelity® Youth Account
Minimum deposit and balance
Teens aren’t tied to any account minimums and there are no monthly fees
Fees
$0 commissions for online U.S. stocks*
Bonus
For a limited time: When you (parent or guardian) initiate the opening of a new Youth Account and your teen (aged 13 to 17) downloads the Fidelity Mobile® App and activates the new account, your teen will receive a $50 deposit as a reward1
Investment vehicles
Investment options
Stocks, ETFs and mutual funds
Educational resources
Teens can access a financial curriculum made just for them to learn about saving, spending and investing
Pros
- No account minimums or monthly fees
- Educational investing resources customized for young teens
- Requires parental oversight: In order for a teenager to sign up, their parent or guardian must already have an existing Fidelity account. Parents can monitor their child’s account activity and set up notification alerts for trades, transactions and spending
- Teen users get access to a free debit card with no subscription fees, no account fees, and no minimum balances
Cons
- Only available to teens aged 13 to 17
- In order to sign up as a teen, parent or guardian must already have an existing Fidelity account
*$0.00 commission applies to online U.S. equity trades and Exchange-Traded Funds (ETFs) in a Fidelity retail account only for Fidelity Brokerage Services LLC retail clients. Sell orders are subject to an activity assessment fee (from $0.01 to $0.03 per $1,000 of principal). Other exclusions and conditions may apply. See Fidelity.com/commissions for details. Employee equity compensation transactions and accounts managed by advisors or intermediaries through Fidelity Clearing & Custody Solutions® are subject to different commission schedules.
The Fidelity Youth Account can only be opened by a parent/guardian. Account eligibility limited to teens aged 13-17.
1Limited Time Offer. Terms Apply. Before opening a Fidelity Youth Account, you should carefully read the account agreement and ensure that you fully understand your responsibilities to monitor and supervise your teen’s activity in the…
Read More: Fidelity Youth vs. Schwab Teen Investor Account
