Charles Schwab Age Requirement
The minimum age to open a Charles Schwab investment account in the U.S. by oneself
(without a custodian) is 18. Before age 18, Schwab offers other ways to invest, but a
parent, guardian, or custodian must be involved. Read on for more details.
Age of Majority
The age of majority is the legal term for becoming an adult, at least in the eyes of the government. This is typically 18 in most U.S. states, although some jurisdictions have different ages for different activities. For opening a regular taxable brokerage account, the age requirement is 18.
Different brokerage accounts have different requirements, and this is where it becomes possible for people under the age of majority to have investment accounts. Some brokerage firms based in the United States may have a higher age requirement to open a foreign account.
Free Charles Schwab Account for a Child
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Custodial Accounts
There are two common custodial account types in the United States: the Uniform Transfers to Minors Act (UTMA) account and the Uniform Gifts to Minors Act (UGMA) account. Both are very similar and generally receive the same tax treatment. The UTMA account is newer and can hold physical property like real estate, while the UGMA is generally limited to financial assets such as cash, securities, and insurance policies. Most states have adopted the UTMA, although there are a few holdouts.
To open a custodial account, two people are needed: a custodian (as the name implies), who is the adult overseeing the account, and a minor under the age of majority. This is one way legal minors can have brokerage accounts.
The custodian does not necessarily have to be the person who contributes assets to the account. The grantor does that, and there can be multiple grantors. The custodian can be both a grantor and a custodian.
In all of these potential scenarios, the assets that go into the account belong to the minor, whose name and birthday are listed on the account. When the minor reaches the age of majority, the assets in the account belong to the child, and the custodian loses access to the account.
If the grantors ever change their mind and want to withdraw the contributions they made before the minor reaches the age of majority, they’re out of luck. Deposits into a custodial account are irrevocable gifts.
For the purposes of custodial accounts, the age of majority can be anywhere from 18 to 25, depending on the state. This is when the account is turned over to the minor.
Funds inside a custodial account can be used for many types of expenses, not just education costs, but any withdrawals before the age of majority must be used for the sole benefit of the minor. For this reason, parents and grandparents may prefer other types of investment accounts.
Where to Open a Custodial Account
Charles Schwab is probably the most popular choice for a brokerage custodial account. There are no account fees,
online commissions on U.S.-listed stocks and ETFs are $0, and you get a huge list of benefits by investing with one of
the largest brokers in the world.
Open Charles Schwab Account
Visit Schwab Website
Coverdell Education Savings Plan
Enter the Coverdell Education Savings Plan. Assets in a Coverdell account can only be used for qualified education expenses, including certain K–12 and higher education costs. As with UTMA/UGMA accounts, there must generally be a beneficiary under the age of 18 when contributions are made, although special rules apply for beneficiaries with special needs.
Although parents and grandparents are usually the people opening Coverdell accounts, organizations can contribute to them. There are no income limits on institutions doing this, although individuals do face income limits on Coverdell contributions.
529 Plans
Next up is the 529 plan, which is one of the most popular investment accounts for minors nowadays. This one
differs from the Coverdell because 529 assets can be used for a broader range of qualified education expenses, including college costs, certain apprenticeship expenses, limited student-loan repayment, and up to $20,000 per year for K–12 tuition under federal rules. Unlike a custodial brokerage account, a 529 plan has an account owner and a beneficiary, and the beneficiary does not have to be a minor in most states. As with the other account types, a 529 plan comes with various tax advantages
(and possible disadvantages) compared to regular brokerage accounts.
Opening a 529 plan might be a little more cumbersome than the other two account types already mentioned,
as many online brokerage firms don’t offer them.
Minor IRA
The final account we’re going to mention here is an IRA for minors. This is similar to any other Individual Retirement Account, with the exception that the account has a custodian and a beneficiary under the age of 18 (like the custodial accounts mentioned already).
The one caveat with this IRA is that the legal minor must have earned income in order to make contributions to the account. Contributions generally cannot exceed the minor’s earned income for the year or the annual IRA contribution limit, whichever is lower. This, of course, is the same basic rule that regular IRAs have.
Finding Brokerage Accounts for Minors
Many, but not all, brokerage firms today offer some of the accounts listed above. To open one, you can usually fill out an online application just as with a regular brokerage account, although some of the minor accounts listed here are so uncommon that a brokerage house may require a paper form.
Some broker-dealers may have one or two of the above accounts, but not all. For example,
M1 Finance
offers custodial taxable accounts, but not a 529 plan. tastytrade offers none of the custodial accounts mentioned in this article. Vanguard has the 529 but not the Coverdell account.
Nowadays, most brokerage accounts for minors have the same pricing schedule as regular brokerage accounts. This means very low fees and zero commissions on online equity trades. Learning materials for investing, however, can vary significantly.
Some broker-dealers may also allow a custodial account to be set up as an automated investing account, which takes a big part of the guesswork out of the equation.
The lesson here? Do your homework before opening an account.
Updated on 6/9/2026.
I work in investment analytics and have been investing in the market since I was in high school. I enjoy anything that involves lots of strategy (i.e. a good game of chess), which is why I was naturally drawn to investing and researching companies. Outside of investing, I’m a big fan of the outdoors. In summer, you’re most likely to find me kayaking, camping, and hiking in the mountains.
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