Charles Schwab has launched a new joint brokerage account that allows teenagers and their parents to buy and sell stocks together. The Schwab Teen Investor account, announced on March 26, gives both teens and parents separate login credentials and shared control.
Unlike traditional custodial accounts, where parents manage funds on behalf of a child, this is a true joint ownership model. "The child is really a passenger" in custodial setups, said Jonathan Craig, head of retail investing at Schwab. "This is a true joint account."
Young Americans are starting to invest earlier. A 2024 Schwab survey found Gen-Z investors began at age 19, compared to millennials at 25 and Gen-Xers at 32. Seventy percent of teens express interest in investing, and 75% of parents say it’s very important for teens to learn.
The Schwab Teen Account has no minimum deposit, no fees, and zero commissions on online stock trades. Teens gain access to a debit card for cash and can fund the account via direct deposit. They can trade stocks, bonds, ETFs, and mutual funds-but not margin, options, or leveraged ETFs. Crypto ETFs are allowed; direct cryptocurrency is not.
Teens receive $50 in fractional shares after completing a financial literacy course. Schwab provides educational videos and 24/7 support from investment professionals.
Fidelity offers a competing product: the Fidelity Youth Account. It’s teen-owned, not joint, and requires a parent with an existing Fidelity account to open it. Parents retain oversight and can close the account at any time.