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How Old Do You Have to Be to Buy Stocks?

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Investing in stocks for children can be a great way to ensure their future. However, it is important to remember that opening a brokerage account as a child is not the same as opening one as an adult. Often, young people need the help of a parent or loved one to open an account.

In most states, you must be at least eighteen years of age before you can invest in stocks. There are exceptions to this rule, however, like custodial accounts, UTMA/UGMA accounts, and 529 investing plans. Regardless of the age limit in your state, there is one basic rule: you cannot open an account unless you are at least eighteen years old.

Investing in stocks when you are young is beneficial for many reasons, including compounding interest. If you can start investing when you are still a teenager, this allows you to invest more money for a longer period of time. Additionally, investing while you are young can help you build up your retirement fund.

In addition to owning a brokerage account, minors can also access the financial markets through a custodial account, which is owned by a parent or legal guardian. While these assets are in the minor’s name, the parent or guardian still controls the amount invested and can instruct the account’s custodian to buy and sell stocks.

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