The new teen brokerage accounts from Charles Schwab and Fidelity allow the kids to execute trades and withdrawals without prior parental approval

Teens can now navigate the stock market directly from their phones.

Financial companies in the US are giving adolescents as young as 13 access to trading with minimal parental involvement.

Firms like Charles Schwab and Fidelity Investments now offer accounts for ages 13 to 17 that give teens significant control over buying and selling investments.

Unlike traditional custodial accounts, where parents hold the reins, these new options put teens in the “driver’s seat,” allowing them to execute trades and withdrawals without prior parental approval.

The shift reflects rising interest in investing, fueled by mobile apps and social media.

However, safeguards remain. Teens cannot access high-risk tools like options or margin trading, limiting potential losses to the money in the account. Most platforms allow trading in US stocks, exchange-traded funds, and mutual funds.

Tax rules also matter: the first $1,350 of a child’s investment income is tax-free, the next $1,350 is taxed at a low rate, and earnings above $2,700 may be taxed at the parent’s rate under the Kiddie Tax. 

Control typically transfers to the child at age 18, 21, or 25, depending on state law.

A 2024 Schwab Modern Wealth survey shows that Gen Z Americans start investing at around age 19, compared with 25 for millennials and 32 for Gen X.