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How Old Do You Have To Be To Open an E*TRADE Account?
E*TRADE age requirement limit. How old do you have to be to open an account at E*TRADE? E*TRADE age limit:
can you use it under 18 years old?
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What Is the Minimum Age to Open an E*Trade Account: Takeaways
• At E*Trade, the minimum age to open an account is 18.
• Adolescent accounts exist that allow minors to open an account with the help of a guardian.
• Accounts for juveniles at E*Trade have no special fees or minimums.
Because E*Trade is owned by Morgan Stanley, who is based in the U.S., the standard minimum age to open a financial account (bank or investment) is 18. Other requirements are in place to open bank and investment accounts with E*Trade; these include a permanent address in the U.S. and a valid tax ID number.
Circumventing the E*Trade Age Requirement
E*Trade’s age requirement is generally valid for the securities and cash accounts available at the firm. However, there are three investment accounts that can be opened by a minor with the help of a legal adult (someone who is at least 18 years of age). The accounts are:
- Coverdell Education Savings Account
- Minor IRA
- Custodial Account
In each of the above three cases, the brokerage account is opened by a minor under the age of 18 and a guardian at least 18. The assets in the account are for the ultimate benefit of the minor.
Although E*Trade does not offer 529 accounts, the broker’s parent company Morgan Stanley does. Like the other three accounts listed above, the 529 is a joint child-adult venture (and not necessarily a child-parent venture).
How to Open an E*Trade Account for a Child
It’s really easy to open a minor account at E*Trade. Just head to the broker’s website and scroll down to the bottom of the page to find the link to open a new account (it’s under the Quick Links section). Although it may sound counter-intuitive, you’ll need to ignore the purple button at the top to open a new account. This button only generates a list of the most popular accounts.
After clicking on the correct link, you’ll get a new page of all accounts available at E*Trade. There are several tabs at the top of the page with account categories. Click on Brokerage. This section will give you tiles for Custodial and Coverdell.
Under the Retirement tab, there is a tile for the Minor IRA. On any one of the three tiles, you can click on the Learn More link to generate a page with more details on the account type. A link to open the account appears on the tile and the information page. Click on this link to pull up the application page.
The application for the Minor IRA and Coverdell account is provided by DocuSign. As with the regular application for the Custodial account, it can be completed online. Just supply the requested information and double check your work.
Besides the website, E*Trade’s mobile app can also be used to open any one of the three accounts for minors. To find the account-opening page, tap on the Menu icon in the bottom-right corner of the app. Next, scroll down to find the link to open an account. A login on the app is not necessary to start an application.
For any of the three accounts opened through either channel, particulars on both the custodian and the minor must be supplied. Tax ID numbers and dates of birth, for example, must be entered for both parties.
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Fees and Commissions on Juvenile Accounts
E*Trade imposes no special fees or commissions on its adolescent accounts. This means there are no annual or low-balance fees. Commissions on many products (but not all) are now free, and there is no minimum-deposit requirement, either.
Charles Schwab as a Substitute
E*Trade isn’t the only discount brokerage firm with accounts for children. Charles Schwab has all
three of the adolescent accounts we found at E*Trade plus the 529 account. Any one of the four can be
opened on Schwab’s website, and the custodial account can be opened through Schwab’s mobile app. To
do just that, tap on the More icon in the bottom-right corner and find the link to open an account on the next page.
On Schwab’s website, find the orange-brown button in the top-right corner
to open an account. On the next page, find the link to display all accounts (the esoteric juvenile accounts won’t show up initially). With all account types displayed, find the one you want and begin the opening process.
Like E*Trade, Schwab does not charge commissions on U.S.-listed stocks and ETFs when traded online
inside an adolescent account. It also doesn’t have a minimum-deposit requirement for these useful
tax-advantaged accounts.
Charles Schwab Website
Visit Schwab Website
Updated on 7/26/2024.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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