When teens invest, they don’t invest alone—parents legally need to be along for the ride. That’s why, whether you’re the teenager or the parent in this equation, you’ll want to be on the lookout for the best taxable brokerage accounts for parents and teens alike.
Teens crave many of the responsibilities (and rewards!) of adulthood. It’s common for teens to have jobs, many of them drive … and an astonishingly high number of them want to invest. While only 23% of teens currently invest, according to Fidelity’s 2023 Teens and Money Study, 91% of those who don’t invest say they want to start at some point, and 75% want to get going before they’ve graduated from college!
I highly encourage parents to indulge this interest—and they can do so by opening up a taxable brokerage account. Specifically, custodial or brokerage accounts can help teens accumulate wealth early while learning important investing and personal finance skills.
But which company should you open an account with?
Today, I’m going to talk to you about some of the best taxable brokerage accounts for teens and parents alike. (What makes them fitting for both parent and child? Well, in addition to typical investing capabilities, they have other useful features such as, say, educational resources or parental controls.) I’ll also spend some time answering common questions related to gift taxes, federal income taxes, contribution limits, and more.
How Can Minors Invest in the Stock Market Through a Taxable Brokerage Account?
Joint Brokerage Account
A joint brokerage account is a brokerage account that has two or more people on the account’s title. At least one of the account owners must be an adult—but a minor can be on the account as well, meaning a parent and child could share a joint brokerage account.
Both parent and child jointly own all of the assets in the account and are responsible for trading decisions. These accounts also boast the widest varieties of investment options, including stocks, bonds, mutual funds, ETFs, and more.
Custodial Brokerage Account
A custodial account is a financial account held in the name of a beneficiary (often a minor) by one or more custodians (often a minor’s parents).
The minor owns the account, but the custodian is legally responsible for the account and invests on behalf of the minor. That said, some custodians choose to involve the child in investment decisions to help them develop financial skills.
Assets in the account belong to the minor, and any withdrawals must directly benefit the child. Once the beneficiary reaches the age of majority, which varies by state, they gain legal control of the account.
Previously, different states used different types of custodial brokerage accounts. Some states offered Uniform Gifts to Minors Act (UGMA) accounts and others offered Uniform Transfers to Minors Act (UTMA) accounts. (If you’re curious, here’s the difference between UTMA and UGMA.) Now, anyone in one of the 50 U.S. states or the District of Columbia automatically uses UTMA accounts.
Parent Taxable Brokerage Accounts—Our Top Picks
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Best Debit Card for Kids
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Feature-Rich Teen App + Debit Card
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Primary Rating:
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Core: $5.99/mo. Max: $10.98/mo. Infinity: $15.98/mo. Family Shield: $19.98/mo. (Each account supports up to 5 children.)
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No subscription fees.
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Best Parent Taxable Brokerage Account Options to Help Kids Invest
1. Greenlight
- Available: Sign up here
- Price: Max: $10.98/mo. Infinity: $15.98/mo. Family Shield: $19.98/mo. (All plans include cards for up to 5 children)
Greenlight is a premier kids’ financial app and debit card that teaches minors the ins and outs of saving, spending, and financial responsibility—and with a Greenlight Max, Infinity, or Family Shield plan, they can start to invest, too!
It’s easy to use and can double as a savings account and banking apps for teens. The investing app will teach the basics of investing, how to invest in stocks and ETFs, and more.
It works best if parents and/or grandparents are involved in the process because it requires linked accounts from the adults’ banks or brokerages. Plus, parents and guardians will need to approve trades made in the investment account.
The all-in-one plan teaches them important financial skills like money management and investing fundamentals—with real money, real stocks and real-life lessons.
You can use the investing feature to:
- Start investing with as little as $1 in your account
- Buy fractional shares of companies you admire (say, kid-friendly stocks)
- No trading commissions beyond the monthly subscription fee
- Teens can only invest in U.S.-listed stocks and ETFs that have either a market capitalization over $1 billion or a three-month average daily dollar volume of more than $500,000
- Parents must approve every trade directly in the app.
Read more in our Greenlight Card review, check out plan pricing below, or sign up for Greenlight Max, Infinity, or Family Shield today.
- Greenlight is a financial solution for kids that allows them to spend with a debit card, earn money on savings, and even invest their money.
- Parents can use this app to teach kids how to invest with a brokerage account through Greenlight Max, Infinity, and Family Shield plans.
- Greenlight offers flexible parental controls for each child and real-time notifications of each transaction. And it's the only debit card that lets you choose the exact stores where kids can spend on the card.
- Greenlight also provides educational materials such as "Level Up" lessons that simplify investing concepts, as well as videos about their favorite companies.
- Families can earn 2% (Core), 3% (Max), 5% (Infinity), or 6% (Family Shield) per annum on their average daily savings balance of up to $5,000 per family. Also, Max and Infinity families can earn 1% cash back on their monthly expenditures.
- Unlike many apps that simply provide features and controls, Greenlight is also designed to spark discussions with children about spending, investing, and more, fostering a better educational experience.
- Best-in-class parental controls (can prohibit specific stores)
- Can add brokerage account to invest in stocks
- Intuitive Parent and Kid apps
- Competitive cash back and interest rates
- High price points
- No cash reload options
- No parent / child lending
Related: 8 Best Greenlight Alternatives [Cards for Kids & Teens]
Cash App Families (Cash App’s Debit Card for Teens)
- Available: Sign up here
- Price: Free* (no subscription fees)
Does your teen need to start learning smart saving, spending, and even investing habits? Cash App Families can accomplish all three—with no subscription fees—putting the power of Cash App into your teen’s hands while keeping their financial safety firmly in yours.
Teens get an account with a designable Cash App Visa® Card, which they can use to spend money where Visa is accepted. Meanwhile, access to Cash App allows them to save money toward specific goals, send money to friends, accept offers for instant discounts at their favorite places, earn high interest on savings³, and check out securely in stores and online by using a QR code.
If your teen direct-deposits $300 or more each month, they’ll also unlock a bevy of other features, including getting paid two days earlier, no ATM fees¹ when withdrawing from more than 40,000 in-network ATMs, and one waived out-of-network ATM withdrawal per month.
Cash App Families even has an investing feature with fractional shares, allowing kids to purchase as little as $1’s worth of stocks and Bitcoin (parent permission is required).²
Meanwhile, parents/guardians who sponsor the teen** enjoy some of the best oversight features among teen debit cards. You can monitor your teen’s activity from your own Cash App or receive real-time transaction alerts for their payments and purchases. You control which features—stocks, Bitcoin², sending money, the Cash App Visa® Card—your teen can access, and certain spending categories are auto-blocked for teens. Parents can also send money for allowance whenever they want, and built-in tools allow parents and teens to budget and save together.
Parents/guardians must download Cash App (also free), then invite their teen to create a sponsored account. Cash App Families can be used by teens ages 13-17. Use our link to learn more about or sign up with Cash App today.
- Cash App Families is a money app and debit card that helps teens ages 13-17** learn about, spend, save, and invest money while under the protection of a large suite of parental oversight tools.
- Teens get a customizable Cash App Visa® Card*, can make and receive instant person-to-person payments, can fund their account with direct deposit, and can even buy as little as $1's worth of stocks and Bitcoin.²
- Your teen can earn 3.25% interest on savings. No account minimums.³
- Pay your kids an allowance, and use Cash App's tools to save and budget together.
- Safety features such as real-time transaction alerts, account monitoring (from the parent's Cash App), alerts for teen payments to new contacts, contact blocking, feature control, and payments control. Also, Cash App auto-blocks certain spending categories to teens, and strangers can't find teens in Cash App search.
- Features such as two-day early payment, free in-network ATM withdrawals, and a monthly reimbursement for an out-of-network ATM withdrawal are unlocked when $300+ is direct-deposited each month.¹
- Free account and Cash App Visa® Card*
- Excellent parental controls (including feature lock and real-time transaction alerts)
- Stock and Bitcoin investing²
- Fractional shares²
- Allowance feature
- Customizable cards ($5+)
- FDIC insurance available on a pass-through basis (if certain conditions are met)***
- Certain benefits, such as free in-network ATM withdrawals¹, require direct deposit of at least $300 monthly
Related: 4 Best Ways to Save Money for Kids [Children’s Savings Plans]
3. Fidelity Youth™ Account (Top Investing App for Teens)
- Available: Sign up here
- Price: No account fees¹, no account minimum, no trading commissions*
- Platforms: Web, mobile app (Apple iOS, Android)
Is your teen interested in jumpstarting their financial future? Do you want them to build smart money habits along the way?
Of course you do! Learning early about saving, spending and investing can pay off big when you start on the right foot. And one tool that can help your teen get that jump is the Fidelity Youth™ Account—an account for teens 13 to 17 that’s designed to help them start their money journey. Teens own the account themselves and can start investing in most U.S. stocks, exchange-traded funds (ETFs), and Fidelity mutual funds for as little as $1!³
Your teen will also get a free debit card with no subscription fees, no account fees, no minimum balances, and no domestic ATM fees². And they can use this free debit card for teens to manage their cash and spend it whenever they need.
And as for building smart money habits? You and your teen can access the account through the Fidelity Youth™ app, which has a dedicated Learn tab packed with materials developed specifically to help teens develop good financial habits. Not only will Fidelity’s interactive lessons, videos, articles, tools, and calculators accelerate their learning—but for every level they complete, reward dollars will be deposited into their account to use however they want.
Controls parents want and need
A parent or guardian must have or open a brokerage account with Fidelity® to open a Fidelity Youth Account. For new Fidelity® customers, opening an account is easy, and there are no minimums and no account fees.
Having a Fidelity account gives parents and guardians access to plenty of tools they can use to monitor their teen’s activity: They have online account access, can follow monthly statements and trade confirmations, and can view debit card transactions made in the account.
To make it even easier, you can set up alerts to notify you of your teen’s trades, transactions, and cash management activity, keeping you firmly in the loop on actions your teen takes across the Fidelity Youth Account’s suite of products.
If your teen has an interest in learning about investing, becoming smarter about money, and taking their first steps toward building their financial journey, you should consider downloading the Fidelity Youth app and opening a Fidelity Youth Account. The account comes custom-built for their needs, which will help them become financially independent and start investing for their future.
Read more in our Fidelity Youth Account review.
- The Fidelity Youth™ Account is a free¹ account where teens can save, spend, and invest their own money.
- No monthly fees or account minimums to open.
- Your teen can learn to save and spend smarter with their own debit card, which features no domestic ATM fees.²
- Teens can invest in stocks for as little as $1 with fractional shares.³
- Parents can set up alerts and monitor their teen's account activity online, and through statements, trade confirmations, and debit card transactions.
- The Fidelity Youth™ app will have a dedicated Youth Learn tab to help jumpstart your teen's financial learning and build better money habits.
- No monthly account fees
- Investing feature
- Fractional shares
- Parental controls
- Comprehensive financial suite for teens
- Parent must be a Fidelity account holder
- Account balance doesn't accumulate interest
- No chore or allowance system
Related: 14 Best Investing Research & Stock Analysis Websites [2026]
Best Custodial Accounts for Parents to Invest With Their Children
4. Acorns Early (Formerly GoHenry)
- Available: Sign up here
- Price: Acorns Gold: $12/mo., includes Acorns Early for up to 4 children.
- Promotion: Earn $20 when you sign up with our link.
Acorns Early (formerly GoHenry) offers a custodial brokerage account for parents interested in opening an investment account, which is available by subscribing to Early through Acorns Gold.
An Acorns Gold subscription comes with a free Acorns Early account for up to four children. More importantly, it also allows you to open an Acorns Early Invest account—a custodial account that not allows you to invest for your kids’ future, but offers a 1% match on up to $7,000 in contributions. Acorns Early offers investment portfolios of various risk levels for kids, so you can feel confident in the account you’re opening up for your little one.
This micro-investing app can be a great way to teach minors how to invest money. Acorns Early also comes with a Mastercard debit card that can be used in stores and online; it allows you to give your children an allowance or pay them for chores; and it has myriad of security guardrails, including chip-and-PIN technology, Mastercard Zero-Liability Protection, and parental controls.
One of the best ways to invest $1,000 for their child‘s future is in a custodial account like the one offered by Acorns Early. Sign up with an Acorns Gold subscription today or learn more in our Acorns review.
- Acorns allows you to sign up for investment, retirement, and checking accounts for you and your family, learn how to earn more money, and grow your investing knowledge.
- Famous for investing spare change automatically through Round-Ups, this all-in-one financial app helps younger generations start investing earlier.
- Invest in expert-built portfolios made up of diversified ETFs.
- Silver tier includes perks such as a 25% match on Acorns Earn rewards (up to $200/mo.), generous APYs on Checking and Emergency Fund, and live Q&As with investing experts.
- Gold tier includes perks such as a 50% match on Acorns Earn rewards (up to $200/mo.), $10,000 in life insurance, and picking individual stocks for your portfolio.
- Gold also comes with a free Acorns Early account for up to four children. It's also the only tier to offer Acorns Early Invest: a UGMA/UTMA custodial account where you can save toward your kids' future and get a 1% match on up to $7,000 in contributions annually.
- Earn even more with Later Match: Acorns will match up to 1% (Silver) or 3% (Gold) of all new IRA contributions in your first year.*
- Special offer: Get a free $20 bonus investment when you sign up with our link and start making recurring investments.**
- Robo-advisor with affordable fees (on larger portfolios)
- Fixed fee model
- Round-ups
- FDIC/SIPC insurance
- IRA match (Silver and Gold)
- High fixed fees for small balances
- Limited investment selections
- Must subscribe to Gold for any self-directed investing options
Related: 10 Best Brokerage Promotions, Bonuses + Deals
Teen + Parent Taxable Brokerage Accounts: FAQs
How old do you have to be to invest in the stock market?
If you want to invest in the stock market without any assistance or supervision, you need to be at least 18 years old. However, minors can invest in the stock market through certain types of brokerage accounts and other investment accounts with the help from adult family members.
Can minors invest?
Yes, as mentioned above, minors can invest. But they need some help.
A minor can’t just stroll into their local Fidelity office or log on to Schwab and open up their own brokerage account. But they still have options as long as they have a parent or other trusted adult to help.
For instance, with an adult’s assistance, a minor can use a joint brokerage account alongside an adult. Or an adult can open a custodial brokerage account, custodial IRA, or custodial Roth IRA—accounts the child technically owns, but that the parent helps steer until their kid is old enough. Also, adults can open up educational accounts like 529 plans or Coverdell education savings accounts (ESAs) to invest on behalf of their minor, though again, the child doesn’t have final say in how those are run.
Still, these varying accounts allow minors (or parents on behalf of minors) to hold a wide range of investments, including stocks, bonds, mutual funds, exchange-traded funds (ETFs), and more.
Who owns the assets inside a taxable joint brokerage account?
When a parent and a child have a taxable joint brokerage account together, they jointly own all of the assets in the account. Both people can make investment decisions, so this is a great way for a parent to teach their child about investments, which is a valuable knowledge for a child’s future.
Who owns the assets inside a custodial account?
The money in a custodial brokerage account belongs to the beneficiary, which is the minor. They own any other assets in the account, as well. However, while the beneficiary owns the assets, the parent manages the custodial account until the child reaches the age of majority for their state, which is usually 18 or 21.
Do custodial accounts affect financial aid eligibility?
Yes, money stored in a custodial account can affect federal student aid eligibility. Since the assets in the account belong to the student, they are weighed more heavily than parental assets.
Parents trying to save money specifically for a child’s future educational expenses should consider using a 529 plan or Coverdell ESA. The assets in these accounts are owned by the parents and therefore don’t affect financial aid eligibility as much.
Do parents pay a gift tax for giving money to their kids?
When parents contribute funds to a child’s custodial account, it counts towards gift contribution limits. For 2026, the annual federal gift tax exclusion is $19,000 for an individual or $38,000 per married couple.
Anyone who exceeds that amount needs to fill out an IRS form so they can deduct the excess money from your lifetime gift tax exemption limit. Currently, the lifetime limit is $15 million, or $30 million for a married couple. Unless you expect to surpass the lifetime limit, you shouldn’t face any issues.
In the case of joint brokerage accounts with a parent and child where the only contributions are from the parent, half of the account value can count as a taxable gift.
How are earnings from taxable brokerage accounts taxed for kids?
The earnings from a custodial account are subject to “kiddie tax” rules. There are three phases to the kiddie tax. Each year, there is a portion that is exempt from federal income tax, a portion taxed at the child’s tax rate, and the rest is taxed at the parents’ rate.
For 2026, the breakdown for custodial account taxes is as follows:
- The first $0 to $1,350 of unearned income is tax-free
- The next $1,351 to $2,700 is taxed at the child’s rate
- Over $2,700 is taxed at the parents’ rate
Remember, this only applies to unearned income in a custodial account –not the account balance.
What type of investments can you hold in a custodial account?
A custodial account lets you invest in popular stock market investments, such as stocks, bonds, cash, mutual funds, and exchange-traded funds. It can be fun for teens to research and choose their own individual stocks. Mutual funds are an easy way to automatically diversify a custodial account.
An UTMA custodial account can also hold real estate, fine art, life insurance policies, and more. This is a great way to pass family assets to a minor.
There are some regulations, though. A custodial account doesn’t let you trade on margin or buy derivatives, futures, or any other highly speculative investments.
Do custodial brokerage accounts have contribution limits?
A custodial account has no contribution limits, so people can invest as much as they want for a child’s future. Parental contributions count towards gift contribution limits, but this isn’t an issue unless you’re likely to surpass the lifetime federal gift tax exemption limit, which is currently $15 million for an individual in 2026.
Money can be withdrawn from a custodial account at any time as long as the funds are used in a way that directly benefits the minor.
An exception is custodial IRAs. Since a custodial IRA is a type of retirement account, this type of custodial account is subject to the same contribution limits as any other IRA.
Related:
- Best Credit Cards for Teens [Build Credit]
- 7 Best Teen Checking Accounts [Bank Accounts for Teenagers]
- How to Invest as a Teenager [Start Investing as a Minor Under 18]
Disclosures
Cash App Families for Teens + Cash App Families for Kids
Cash App is a financial services platform, not a bank. Banking services provided by Cash App’s bank partner(s). Prepaid debit cards issued by Sutton Bank, Member FDIC. Cash App Visa® Debit Flex Cards issued by Sutton Bank, Member FDIC, and The Bancorp Bank, N.A., pursuant to a license from Visa U.S.A. Inc. Offers, Instant Discounts, Savings, and Direct Deposit provided by Cash App, a Block, Inc. brand. Offers may not be affiliated with third party merchants.
* Card use fees apply. Free Cash App Cards come in black, white, pink, or glow-in-the-dark.
** Teens 13 to 17 can use Cash App with sponsorship by an eligible parent or guardian. To view the eligibility requirements for sponsoring a teen, please visit the Sponsored Accounts section of the Cash App Terms of Service.
*** Parents and legal guardians can open a managed account for kids 6-12. To view the eligibility requirements for sponsoring a teen or child, please visit the Sponsored Accounts section of the Cash App Terms of Service.
**** With a Cash App Card, your money is eligible for FDIC pass-through insurance through Wells Fargo Bank, N.A., Sutton Bank, and/or The Bancorp Bank, N.A., Members FDIC, for up to $250,000 per customer when aggregated with all other deposits held in the same legal capacity at each bank, if certain conditions are met. See the Cash App Terms of Service.
Cash App is a financial services platform, and not an FDIC-insured bank. Prepaid debit cards issued by Sutton Bank, Member FDIC. Cash App Visa® Debit Flex Cards issued by Sutton Bank, Member FDIC, and The Bancorp Bank, N.A., pursuant to a license from Visa U.S.A. Inc..
1 Cash App reimburses ATM fees for all in-network withdrawals when you deposit at least $300 monthly of Qualifying Deposits into Cash App, or spend $500 or more in Qualifying Purchases using your Cash App Card or Cash App Pay in a calendar month. Service fees may apply. See terms for more details.
2 Brokerage services provided by Cash App Investing LLC, member FINRA/SIPC, subsidiary of Block, Inc. Bitcoin services provided by Block, Inc. Bitcoin services are not licensable activity in all U.S. states and territories. Block, Inc. operates in New York as Block of Delaware and is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Investing and bitcoin are non-deposit, non-bank products that are not FDIC insured and involve risk, including monetary loss. Cash App Investing does not trade bitcoin and Block, Inc. is not a member of FINRA or SIPC. For additional information, see the Bitcoin and Cash App Investing disclosures. Additional fees for securities may apply such as regulatory fees and fees to transfer securities externally. Please see our House Rules for more information. Fractional shares investing may involve additional risks such as non-transferability. For additional information regarding the unique risks and limitations of fractional shares, please see your Investing Customer Account Agreement.
3 Cash App will pass through a portion of the interest paid on your savings balance held in an account for the benefit of Cash App customers at Wells Fargo Bank, N.A., Member FDIC. To earn interest on your Cash App savings balance, you need to have sponsor approval. Exceptions may apply. Savings yield rate is subject to change.
Terms and Conditions for Fidelity Youth™ Account
The Fidelity Youth Account can only be opened by a parent/guardian. Account eligibility limited to teens aged 13-17.
* $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.
¹ Zero account minimums and zero account fees apply to retail brokerage accounts only. Expenses charged by investments (e.g., funds, managed accounts, and certain HSAs) and commissions, interest charges, or other expenses for transactions may still apply. See Fidelity.com/commissions for further details.
² Your Youth Account will automatically be reimbursed for all ATM fees charged by other institutions while using the Fidelity® Debit Card at any ATM displaying the Visa®, Plus®, or Star® logos. The reimbursement will be credited to the account the same day the ATM fee is debited. Please note, for foreign transactions, there may be a 1% fee included in the amount charged to your account. The Fidelity® Debit Card is issued by PNC Bank, N.A, and the debit card program is administered by BNY Mellon Investment Servicing Trust Company. These entities are not affiliated with each other, and Fidelity is not affiliated with PNC Bank or BNY Mellon. Visa is a registered trademark of Visa International Service Association, and is used by PNC Bank pursuant to a license from Visa U.S.A. Inc.
³ Fractional shares quantities can be entered out to 3 decimal places (.001) as long as the value of the order is at least $0.01. Dollar-based trades can be entered out to 2 decimal places (e.g. $250.00)
Fidelity Brokerage Services LLC, Member NYSE, SIPC 900 Salem Street, Smithfield, RI 02917
