How Old Do You Have To Be to Buy Stocks?

Updated: May 8, 2026

I get this question more than you’d expect, usually from a parent whose kid just asked why they can’t buy Apple stock with their birthday money.

The short answer is 18. That’s the age at which you can open a brokerage account, sign the required agreements, and start investing on your own.

But under 18 is not the same as locked out. There are real, legitimate ways for younger investors to get started, and some of them are actually better than waiting.

Why 18? The Legal Reason

Brokerage accounts require you to sign a contract. In the United States, minors cannot enter into legally binding contracts on their own.

That is not a rule invented by brokerages to annoy teenagers. It is the legal definition of the age of majority, and it applies to financial agreements the same way it applies to everything else.

At 18, that changes. You can open an account at Fidelity, Schwab, or any other major brokerage, fund it, and start buying stocks, ETFs, or whatever else you want to hold.

Before 18, you need an adult involved.

Investing Under 18: Custodial Accounts

A custodial account is an investment account opened by an adult on behalf of a minor. The adult manages it and makes investment decisions until the minor reaches the age of majority.

At that point, control transfers to the now-adult account holder. The custodian steps back entirely.

The assets belong to the minor from the moment they are deposited. The custodian does not own them — they just manage them.

There are two main types: UGMA and UTMA.

A UGMA account holds cash, stocks, bonds, mutual funds, and ETFs. It is available in all 50 states and is the simpler of the two structures.

A UTMA account allows everything a UGMA does, plus real estate, intellectual property, and other asset types. For most families investing in standard securities, the difference is not meaningful.

One important note before you open one: once money goes into a custodial account, it cannot come back out for the adult’s purposes.

The gift is irrevocable. Make sure the money going in is genuinely intended for the child.

The Custodial Roth IRA: The Account Nobody Talks About Enough

If a teenager has earned income from a job, freelance work, or a small business, they are eligible to contribute to a Roth IRA. A parent opens it as a custodial Roth IRA and manages it until the teen turns 18.

The contribution limit is the lesser of the annual IRS limit or the teen’s total earned income for the year. So if a 16-year-old earns $3,000 from a part-time job, they can contribute up to $3,000 to a custodial Roth IRA that year.

Roth contributions grow tax-free. Every dollar that goes in at 16 has decades of compounding ahead of it.

The math on starting at 16 versus 25 is not a motivational talking point. It is a real, computable difference in what someone ends up with at retirement.

Experience Transparency: In 2019 I worked with a client, a physician in her late 40s, who was doing serious retirement catch-up. She was disciplined, high-income, and investing aggressively.

In one of our early conversations she mentioned that her father had opened a small investment account for her when she was 14. She had completely forgotten about it.

When we tracked it down, a few thousand dollars invested in an S&P 500 index fund in the mid-1980s had grown to just under $190,000. She had done nothing.

The account had just sat there for 35 years. That conversation changed how I talk to parents about custodial accounts.

The amounts feel small when you open them. They do not stay small.

What Young Investors Should Actually Buy

This question comes up constantly and the answer is simpler than most people expect.

For a custodial account or a custodial Roth IRA, broad index funds and ETFs are the right starting point for almost every young investor. Something that tracks the S&P 500, like Vanguard’s VOO or Fidelity’s FZROX, gives exposure to hundreds of companies at extremely low cost.

No research required. No concentration risk in a single name.

Individual stocks are not off-limits, but they require research, attention, and a tolerance for volatility that most new investors underestimate. For a teenager just getting started, a low-cost index fund removes most of the ways to make an expensive mistake.

The goal at this stage is not to find the next great stock. It is to build the habit, understand how markets work, and let time do the heavy lifting.

Investment Platforms Worth Knowing

Fidelity and Schwab both offer custodial accounts with no account minimums and a strong selection of no-fee index funds. They are the most straightforward options for a parent opening an account for a child.

Fidelity’s Youth Account is specifically designed for teens aged 13 to 17. It lets the teen manage the account themselves under parental oversight, which is a solid option for a kid who wants to learn by doing.

For custodial Roth IRAs, Fidelity and Schwab are again the most practical choices. Both platforms have solid educational resources if the teenager actually wants to understand what they own.

Wall Street Reality Check: Most conversations I have with parents about investing for their kids get stuck on the wrong question. They want to know which stock to buy.

The better question is how much time the child has before they will need the money, and whether the account is structured to take advantage of it.

I have seen parents open custodial accounts, pick a handful of individual stocks based on brands their kids recognize, and sell everything two years later when the market corrected and the account was down 15 percent.

The structure was fine. The behavior killed the return.

A boring index fund left alone for 20 years beats an exciting stock portfolio that gets sold at the first sign of trouble almost every time.

The account type matters. The behavior inside it matters more.

The Real Advantage Young Investors Have

It is not insider knowledge. It is not a better strategy. It is time.

A 16-year-old who starts investing has roughly 50 years of compound growth before a standard retirement age. A 35-year-old starting from zero has 30.

That 20-year gap is not a minor difference. At the same contribution rate, it produces dramatically different outcomes at 65.

The most important investing decision a young person can make is not which stock to buy. It is to start before they feel ready, with whatever amount they can actually commit to, and leave it alone.

Frequently Asked Questions

At what age is it legal to start trading stocks?

18 is the minimum to open and manage a brokerage account independently in the United States. Under 18, a parent or guardian needs to open a custodial account.

The minor owns the assets but cannot manage the account until reaching the age of majority.

What is the minimum age to open a brokerage account?

18 for a standard individual brokerage account. For custodial accounts, there is no minimum age for the minor.

A parent can open one for a newborn if they want to. The custodian manages it until the child reaches adulthood, then steps back entirely.

Can minors legally own stock?

Yes. Minors can own stock through a custodial account. The assets belong to the child from the moment they are deposited.

A parent or guardian manages the account until the minor turns 18, at which point full control transfers over.

What should parents do to invest on behalf of their children?

Open a custodial account, either UGMA or UTMA, through a brokerage like Fidelity or Schwab. Fund it, choose a broad index fund as a starting point, and contribute regularly if you can.

If the child has earned income, a custodial Roth IRA is worth setting up alongside or instead of a standard custodial account. The tax-free growth over a long time horizon is hard to beat.

Are there platforms that allow users under 18 to trade?

Fidelity’s Youth Account allows teens aged 13 to 17 to manage their own investments under parental oversight. It is one of the better options for a teenager who wants hands-on experience rather than just watching a parent execute trades.

Most other platforms require a standard custodial structure where the adult makes the actual investment decisions.

How can a teenager get started with investing?

Ask a parent to open a custodial account, or a custodial Roth IRA if you have earned income. Start with a broad index fund and contribute whatever you can consistently.

Learn enough to understand what you own and why. Then leave it alone.

The hardest part is not picking the right investment. It is staying out of your own way long enough for compounding to do its job.

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Updated: May 8, 2026. This article has been fully rewritten with current market context and reflects Jenna Lofton’s 15+ years of experience in financial markets.

Disclaimer: Nothing in this article constitutes financial or investment advice. All investing involves risk including the potential loss of principal. Always conduct your own research and consider consulting a licensed financial professional before making any investment decisions.