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Age Requirement: How Old Do You Have To Be To Open a Firstrade Account
Firstrade age limit in 2024. How old do you have to be to open a brokerage account at Firstrade?
Firstrade account for under 18 years old.
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Firstrade Age Requirement
Helping a child start with some financial savings can be very rewarding and provide them with a significant advantage. At Firstrade, you can choose between two types of accounts for this purpose: a custodial account and a college savings account.
Continue reading for more details.
Key Takeaways
• Firstrade offers both custodial accounts and Coverdell ESA accounts, both aimed at investing for minors.
• Firstrade has a wide selection of investment options, making it a strong choice for long-term investing.
• Firstrade has very low fees, making it great for long-term, minimal management investment strategies.
Custodial Account Structure
A custodial account at Firstrade is an investment account opened by an adult for a minor. Depending on your state, these accounts will comply with either the Uniform Transfers to Minors Act (UTMA) or Uniform Gifts to Minors Act (UGMA).
These accounts let parents and guardians manage and hold assets for a minor until they become adults. Unlike some other types of minor accounts, like Coverdell accounts, the minor gets full control of the custodial account once they reach a certain age, usually 18 or 21, depending on state laws.
Why Choose Firstrade for Custodial Accounts?
Firstrade's custodial accounts come with several advantages that make them popular among parents and guardians.
The platform is easy to use, which simplifies managing investments. Firstrade also offers many educational tools, like webinars and articles, to help families understand investing. Additionally, the platform charges no fees on trades, making it cost-effective.
Open Firstrade Custodial Account
Open Firstrade Account
Eligibility for Firstrade's Custodial Accounts
To open a custodial account, the custodian must be a U.S. resident and at least 18 years old. The minor can be any age but must also live in the U.S.
Both custodian and minor need a Social Security Number (SSN) or Taxpayer Identification Number (TIN). This ensures compliance with federal laws and proper tax reporting.
Accurate ID documents are also required during the application to verify identity.
Costs Associated with Firstrade's Custodial Accounts
Firstrade's low fees are appealing for long-term investing. There are no charges for account maintenance or inactivity.
The absence of trading commissions and a variety of mutual funds without fees further make Firstrade an attractive option for custodial accounts.
Managing a Custodial Account
Managing the account is straightforward. You can transfer money via bank transfers, set up regular contributions, and trade easily through the platform. The custodian controls the account until the minor is old enough to take over.
While the custodian manages the trades, all money, including any earnings from investments, belongs to the minor. The accounts are also on 'limited margin', meaning they are restricted to safer investments.
Firstrade Coverdell Education Savings Accounts (ESAs)
For saving for educational expenses, Firstrade offers the Coverdell Education Savings Accounts (ESAs). These accounts are tax-advantaged, letting you grow your savings without paying taxes on it.
You can use these accounts for various educational costs, not just college fees, but also for elementary and secondary school expenses, books, and even tutoring.
Firstrade Age Requirement Final Thoughts
Firstrade’s custodial accounts are a great way to invest in a child's future. With low fees, excellent customer service, and plenty of educational resources, Firstrade is highly regarded in the financial community.
Open Custodial Account
Open Firstrade Account
Updated on 7/4/2024.
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