Stock Trading for Teens
Stock trading can seem like a daunting task for newcomers, especially teenagers learning about stock trading for the first time. And you might be happy to know it doesn’t have to be.
What is the Stock Market?
The stock market is a place for buyers and sellers to come together and trade shares in publicly-traded companies with each other.
Can You Trade Stocks Under 18?
Yes! If you are choosing to invest as a minor, (meaning you’re under 18 or 21, depending on your state of residence) you can invest in the stock market under 18. To do so, you’ll need to open a special type of investment account for minors called a custodial account.
Custodial brokerage accounts act as a great way to engage teenagers who wish to learn about the stock market and trade stocks under the age of 18. They require a custodian to open the account and oversee the investment decisions made within it for the benefit of the minor.
What is Stock Trading for Teens?
Stocks act as some of the best investments for teenagers because they tend to provide a long-term focus on growth and higher returns.
Should Teenage Investing Include Individual Stocks?
If you choose to start investing in individual stocks, try to stick to blue-chip stocks. Blue-chip stocks come from established, well-known companies that are generally more stable.
6 Apps that Show How Teenagers Can Invest in the Stock Market
The stock market can be a tricky place. It can be really rewarding if you choose wisely and your stocks go up – or devastatingly disappointing if they don’t. That doesn’t mean investing as a minor is off limits though!
1. Acorns ($10 bonus)
- Available: Sign up here - Price: Acorns Lite: $1/mo, Acorns Personal: $3/mo, Acorns Family: $5/mo
2. Greenlight App
- Available: Sign up here - Price: Free 1-month trial, $7.98/mo after for Greenlight Card + Invest
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