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In the United States, you generally must be 18 to open and control a standard brokerage account on your own. If you’re younger, you can still invest through certain adult-managed accounts, but the account’s owner, rules and access to the money depend on the account type and state law.
Can a minor buy stocks?
Yes, but usually not by independently opening a standard brokerage account. A parent or another adult can manage investments for a minor through a custodial account. The adult-owned brokerage account, custodial account and custodial IRA are different arrangements; they do not give a minor the same ownership or control.
The age-18 rule is a general U.S. norm, not a guarantee that every broker has identical requirements or that the same legal rule applies everywhere. Confirm the broker’s current eligibility rules and the law where you live.
Ways to invest before turning 18
| Account | Who owns the assets? | Who manages it now? | Key condition |
|---|---|---|---|
| Custodial UGMA/UTMA brokerage account | The minor beneficiary | An adult custodian, who must act in the child’s interest | Assets are irrevocable gifts to the child; when control transfers depends on applicable state law and account structure. |
| Custodial IRA, including a Roth IRA when appropriate | The child | An adult custodian | The child must have taxable compensation, and contributions cannot exceed the child’s earnings. |
| Trump Account | The child | A parent or guardian serves as custodian until age 18 | For eligible U.S. citizens under 18; program and investment rules are new, and some investment provisions are proposed. |
| Adult-owned brokerage account intended for a child | The adult account holder | The adult account holder | The account remains in the adult’s name; it is not the child’s custodial account. |
Custodial UGMA or UTMA brokerage account
This is the most direct route for investing money for a child in a regular taxable brokerage account. The custodian manages the assets for the child, but the money belongs to the child: contributions are irrevocable gifts, and the custodian must act in the child’s interest. FINRA explains that control transfers at the age of majority, which varies by state. Its 2017 overview described the typical range as 18 to 21, but that range is not a state-by-state determination; check the law and account terms for your situation. FINRA’s current guidance on investing for children and its 2017 UGMA/UTMA overview explain the custodial structure.
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UGMA and UTMA accounts differ in the assets they can hold. FINRA describes UGMA accounts as generally covering cash, securities and insurance policies, while UTMA accounts can accommodate a broader range of assets. The exact account rules depend on the applicable law and provider.
Custodial IRA
A child with taxable compensation may be able to save for retirement through a custodial IRA, including a Roth IRA when appropriate. The IRS says there is no age limit for IRA contributions, but the contributor needs taxable compensation; investment income such as interest and dividends does not count as compensation. Contributions also cannot exceed the child’s earnings. This is a retirement-oriented account, not a flexible substitute for a standard brokerage account. See IRS Topic 451.
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Trump Account
Investor.gov describes Trump Accounts as an option for eligible U.S. citizens under 18, held in the child’s name with a parent or guardian as custodian until age 18. FINRA says no earned income is required and describes contributions as beginning July 4, 2026. Because the program is new, verify current eligibility, availability and official rules before relying on it.
An IRS release dated August 20, 2026, describes proposed eligible-investment rules for the growth period: generally, an unleveraged mutual fund or ETF tracking an equity index of primarily U.S. companies, with annual fees and expenses no greater than 0.1% of fund balance. These are proposed rules, not a reason to assume every detail is final. Read the IRS announcement on proposed Trump Account regulations and Investor.gov’s Trump Account overview for current official information.
Adult-owned brokerage account
An adult can invest through an account in their own name with the intention of using some of the money for a child. But the adult—not the child—owns and controls that account. It is legally and practically different from a UGMA/UTMA account, where the child owns the assets.
How to choose an account
Start with the purpose of the money and who should own it. Before opening an account, compare:
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- Ownership: Is the money the child’s property, or does it remain the adult’s?
- Control: Who can direct trades and withdrawals while the child is a minor, and when does control transfer?
- Use of funds: Is the account intended for general investing or specifically for retirement?
- Eligibility: Does the child need earned income, or does the account have other eligibility rules?
- Tax and state rules: What tax treatment applies, and what local law or account terms govern the arrangement?
There is no universally best choice. A custodial brokerage account makes the child the owner; a custodial IRA depends on the child’s taxable compensation and is retirement-focused; an adult-owned account keeps ownership with the adult. Trump Accounts have their own eligibility and investment rules. Consider your family’s goals and check the applicable tax and state rules rather than treating these accounts as interchangeable.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What young investors should know about risk
Stocks can rise or fall in value, and investments do not have a set rate of return. The SEC’s Investor.gov explains that asset allocation and diversification are ways to manage risk, and that an index fund seeks to track a market index. Neither diversification nor a long time horizon guarantees a profit or prevents losses. Learn the basics and understand the risks before investing money that may be needed soon.
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Investor.gov offers a hypothetical illustration using a 7% assumed annual return. That assumption is not a forecast or a promise of what an account will earn. Actual returns vary, and fees, taxes and investment choices affect results. See Investor.gov’s saving and investing guidance.
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