Advertiser Disclosure
Many or all of the offers on this site are from companies from which Insider receives compensation (for a full list see here). Advertising considerations may impact how and where products appear on this site (including, for example, the order in which they appear) but do not affect any editorial decisions, such as which products we write about and how we evaluate them. Personal Finance Insider researches a wide array of offers when making recommendations; however, we make no warranty that such information represents all available products or offers in the marketplace.
Written by Rickie Houston; edited by Sarah Silbert
2022-04-18T15:33:30Z
- Is the Fidelity Youth Account right for you?
- Fidelity vs. Charles Schwab's custodial and youth accounts
- Fidelity vs. E*TRADE's custodial and youth accounts
- Ways to invest with the Fidelity Youth Account
- Fidelity: Is the brokerage trustworthy?
Our experts answer readers' investing questions and write unbiased product reviews (here's how we assess investing products). Paid non-client promotion: In some cases, we receive a commission from our partners. Our opinions are always our own.
Fidelity Youth Account
4.76/5
Account Minimum
$0
Fees
0%
Account Types
Individual accounts
Investment Types
Stocks, ETFs, and mutual funds
On Fidelity's website
Fidelity Youth Account
4.76/5
Account Minimum
$0
Fees
0%
Account Types
Individual accounts
Investment Types
Stocks, ETFs, and mutual funds
On Fidelity's website
Fidelity Youth Account
On Fidelity's website
Details
Account Minimum
$0
Fees
0%
Account Types
Individual accounts
Editor's Rating
4.76/5
Pros & Cons
Pros
No minimums or fees to use the account
Account includes savings and spending perks (plus a debit card); teenagers can invest in equities and funds
No deposit limits
Account automatically transitions to a standard brokerage account once minor reaches age 18
Cons
Parent/guardian must have an existing Fidelity account in order for minors to set up the youth account
No automated investing options for the account
Highlights
More Information
- Promotion: Teen gets a $50 reward when parent/guardian opens the account for them.
Overall rating
| Feature | Insider rating (out of 5) |
| Fees | 5.00 |
| Investment selection | 4.00 |
| Access | 4.78 |
| Ethics | 5.00 |
| Customer service | 5.00 |
| Overall score | 4.76 |
Is the Fidelity Youth Account right for you?
In 2021, online brokerage Fidelity became a pioneer in the investment space by launching the Fidelity Youth Account, an investment account that gives teenagers the power to make their own trading decisions.
Such accounts are uncommon amongst online brokerages and investment apps, since most mainly provide parent or guardian-managed vehicles like UGMA/UTMA custodial accounts, 529 college savings plans, and IRAs for minors. The Fidelity Youth Account, however, allows for both DIY trading and spending and savings perks.
You can also use the account with Fidelity's iOS and Android mobile apps.
Fidelity Youth Account
4.76/5
Account Minimum
$0
Fees
0%
Account Types
Individual accounts
Investment Types
Stocks, ETFs, and mutual funds
On Fidelity's website
Fidelity Youth Account
4.76/5
Account Minimum
$0
Fees
0%
Account Types
Individual accounts
Investment Types
Stocks, ETFs, and mutual funds
On Fidelity's website
Fidelity Youth Account
On Fidelity's website
Details
Account Minimum
$0
Fees
0%
Account Types
Individual accounts
Editor's Rating
4.76/5
4.76 out of 5 Stars
Pros & Cons
Pros
No minimums or fees to use the account
Account includes savings and spending perks (plus a debit card); teenagers can invest in equities and funds
No deposit limits
Account automatically transitions to a standard brokerage account once minor reaches age 18
Cons
Parent/guardian must have an existing Fidelity account in order for minors to set up the youth account
No automated investing options for the account
Highlights
More Information
- Promotion: Teen gets a $50 reward when parent/guardian opens the account for them.
Fidelity vs. Charles Schwab's custodial and youth accounts
|
|
Min. Investment $0 | Min. Investment $0 for all custodial accounts |
Fees 0% | Fees 0% for custodial account, IRA for Minors account, 529 plan, and Education savings account |
Investment choices Stocks, ETFs, Fidelity mutual funds | Investment choices Stocks, ETFs, options, futures, mutual funds, money market funds, CDs, and bonds |
| Open account | Open account |
Fidelity Youth Account and Charles Schwab offer many of the same products: self-directed brokerage accounts, automated portfolios (or robo-advisors) and advisor-managed accounts, IRAs, and much more. But when it comes to minor-related accounts, Fidelity is the better choice for teenagers who want to take things into their own hands.
Both brokerages offer a variety of custodial accounts that parents or guardians must themselves set up and manage, but Schwab doesn't currently offer the Fidelity Youth Account equivalent.
Fidelity vs. E*TRADE's custodial and youth accounts
|
|
Min. Investment $0 | Min. Investment $0 for custodial account, IRA for Minors account, and education savings account |
Fees 0% | Fees 0% for custodial account, IRA for Minors account, and education savings account |
Investment choices Stocks, ETFs, Fidelity mutual funds | Investment choices Stocks, ETFs, bonds, options, mutual funds, futures, and CDs |
| Open account | Open account |
As with Fidelity Youth Account and Schwab, the key difference between Fidelity and E*TRADE is that Fidelity offers a youth account that allows teenagers to make all of the investment decisions in the account. E*TRADE, however, offers several accounts designed to build wealth for minors, but parents/guardians must oversee these accounts.
Ways to invest with the Fidelity Youth Account
Individual investment accounts
The Fidelity Youth Account is free to set up and use, and it comes with a debit card. But while the account is teen-owned, the parent or guardian must have an existing Fidelity brokerage or cash management account in order for the minor to invest.
As for investment types, teens can purchase both full and fractional shares of stocks, ETFs, and Fidelity mutual funds. Investments in cryptocurrencies, penny stocks, international stocks, foreign currencies, and IPOs are currently prohibited.
And ownership of this account doesn't limit parents/guardians from utilizing other Fidelity accounts on behalf of their child. Even if you're currently investing with the youth account, your parent can still open a UGMA/UTMA account, Roth IRA for Kids account, or 529 plan on your behalf.
Once you turn 18, you'll have to transition the account to Fidelity's standard brokerage account. According to Fidelity, the debit card issued will still be valid until it expires, at which point it will issue a new debit card.
Fidelity: Is the brokerage trustworthy?
The Better Business Bureau gives Fidelity Investments an A+ rating; BBB ratings range from A+ to F, so this is the highest rating a company can receive.
As for its methodology, the bureau's ratings mainly stem from its opinion of how well a company interacts with its customers, but the BBB also takes into account several other factors when evaluating businesses. These include type of business, time in business, advertising issues, licensing and government actions, and more.
Keep in mind, however, that the bureau's ratings don't guarantee a company's reliability or performance, so it's equally important to do your own due diligence before opening an account.
Fidelity paid $28.5 million in 2020 to settle a 2018 lawsuit that accused the company of failing to adhere to its fiduciary duty by offering 401(k) plan investments that presented conflicts of interest. The company has closed more than 350 complaints in the last 12 months.
Fidelity Youth Account
4.76/5
Account Minimum
$0
Fees
0%
Account Types
Individual accounts
Investment Types
Stocks, ETFs, and mutual funds
On Fidelity's website
Fidelity Youth Account
4.76/5
Account Minimum
$0
Fees
0%
Account Types
Individual accounts
Investment Types
Stocks, ETFs, and mutual funds
On Fidelity's website
Fidelity Youth Account
On Fidelity's website
Details
Account Minimum
$0
Fees
0%
Account Types
Individual accounts
Editor's Rating
4.76/5
4.76 out of 5 Stars
Pros & Cons
Pros
No minimums or fees to use the account
Account includes savings and spending perks (plus a debit card); teenagers can invest in equities and funds
No deposit limits
Account automatically transitions to a standard brokerage account once minor reaches age 18
Cons
Parent/guardian must have an existing Fidelity account in order for minors to set up the youth account
No automated investing options for the account
Highlights
More Information
- Promotion: Teen gets a $50 reward when parent/guardian opens the account for them.
Fidelity — Frequently asked questions (FAQ)
What type of account is the Fidelity youth account?
The Fidelity Youth Account is a brokerage account for teenagers between the ages of 13 and 17. However, in addition to investing, the account also allows for spending and saving all under one umbrella.
Is Fidelity good for minors?
Yes. Fidelity offers a vast range of accounts that may be beneficial for those under the age of 18. These include its UGMA/UTMA custodial account, Roth IRA for Kids, and 529 plans. A parent or guardian must open and manage each of those accounts, but minors can set up and invest on their own using the youth account.
Can a 16-year-old open a Fidelity account?
Yes. The only account that Fidelity currently offers that allows teenagers to do DIY investing is the Fidelity Youth Account.
Rickie Houston
Senior Wealth-Building Reporter
Rickie Houston was a senior wealth-building reporter for Business Insider, tasked with covering brokerage products, investment apps, online advisor services, cryptocurrency exchanges, and other wealth-building financial products. Before Insider, Rickie worked as a personal finance writer at SmartAsset, focusing on retirement, investing, taxes, and banking topics. He's contributed to stories published in the Boston Globe, and his work has also been featured in Yahoo News. He graduated from Boston University, where he contributed as a staff writer and sports editor for Boston University News Service.
Top Offers From Our Partners
SoFi Checking and Savings Eligible customers can earn up to $250 with qualifying direct deposit through 12/31/2023. Plus, earn up to 4.30% APY on savings accounts with direct deposit.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
**Enrollment required.
Newsletter
Get the latest tips you need to manage your money — delivered to you biweekly.
Thanks for signing up!
Access your favorite topics in a personalized feed while you're on the go.
More...
