What Is The Stock Market And Can You Trade Stocks Under 18?

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.

Stock markets essentially act like auctions, where potential buyers name the highest price they’re willing to pay (called “the bid”) and potential sellers name the lowest price they will accept (called “the ask”).

What is the Stock Market?

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.

Can You Trade Stocks Under 18?

Stocks act as some of the best investments for teenagers because they tend to provide a long-term focus on growth and higher returns. They carry higher risks traditionally than investments like bonds, but young investors can tolerate this volatility due to their long investment horizons.

What is Stock Trading for Teens?

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.

Should Teenage Investing Include Individual Stocks?

By beginning with small amounts of money, teenagers can learn how to trade stocks in their portfolio before serious amounts of money get put at risk.

6 Apps that Show How Teenagers Can Invest in the Stock Market

Acorns is the signature app loved by Millennials and Gen-Zers because it allows users to start with very small amounts of money and grow their balance into larger figures through “Round-Ups”.

1. Acorns  ($10 bonus)

It’s easy to use and can double as a savings account for your teens. The app will teach you the basics of investing, how to trade stocks, ETFs, etc. with market capitalizations of $1 billion or greater. In other words, no small cap stocks, and more the stocks for kids with broader brand name appeal.

2. Greenlight App

This app provides a convenient and inexpensive way to gift money to a child, with funds available to go toward any expenses which benefit the child.

3. EarlyBird  ($10 Bonus)

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