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Vote? Not yet. Invest? Yes. Fidelity launches teen accounts
May 18, 2021, 12:48 PM
NEW YORK (AP) Looking to draw in the next generation of investors, Fidelity Investments is launching a new type of account for teenagers to save, spend and invest their money.
The account is for 13- to 17-year-olds, and it will allow them to deposit cash, have a debit card and trade stocks and funds. The teens can make their own trades through a simplified experience on Fidelity s mobile app, with zero account fees or minimum balances, though the youth account requires a parent or guardian to have their own Fidelity account as well.
New Fidelity Account Lets Teens Invest in Stocks
The Fidelity Youth Account is an industry first.
Photo by ViDI Studio / Shutterstock.com
When you invest in stocks, an early start can make all the difference. Now, Fidelity is helping youngsters get a big jump on building their portfolios.
On Tuesday, the financial services corporation rolled out the Fidelity Youth Account, which is aimed at kids between the ages of 13 and 17.
Fidelity says it is “the industry’s first brokerage account designed exclusively for 13- to 17-year-old teens to save, spend and begin investing.”
The new youth account allows teens to buy and sell U.S. stocks, Fidelity mutual funds and many exchange-traded funds, or ETFs. Parents and guardians are able to monitor their teen’s account activity.
The teen must have a parent or guardian with an existing Fidelity account.
Teens will own the account and can trade most U.S. stocks, ETFs and Fidelity mutual funds, but are not permitted to trade options.
Deposits in the account are capped at $30,000 annually.
The service will not have subscription fees, account fees, minimum balances, debit card domestic ATM fees or commissions for online trading.
At age 18, the account will be transitioned to a retail brokerage account for free.
Parents or guardians will be able to have ongoing oversight by monitoring account activity through monthly statements, trade confirmations and by viewing debit card transactions. They can also set up alerts to be notified of trades, transactions, and cash management activity.
Fidelity Launches Trading Accounts For Teens As Battle For Next Generation Of Day Traders Heats Up zerohedge.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from zerohedge.com Daily Mail and Mail on Sunday newspapers.