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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? Morgan Stanley 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: Key Points
• At E*Trade, you must be at least 18 years old to open an account.
• There are special accounts for minors that can be opened with a guardian's help.
• E*Trade does not charge any extra fees or require a minimum balance for minor accounts.
Since E*Trade is owned by Morgan Stanley in the U.S., the usual age to open a bank or investment account is 18. To open an account with E*Trade, you need a permanent U.S. address and a valid tax ID number.
Ways to Bypass the E*Trade Age Requirement
E*Trade’s age rule covers its securities and cash accounts. However, there are three types of investment accounts that a minor can open with an adult who is at least 18. These accounts are:
- Coverdell Education Savings Account
- Minor IRA
- Custodial Account
In each of these, a minor under 18 can open an account with guidance from a guardian who is 18 or older. The money in these accounts is meant for the minor’s benefit.
Even though E*Trade doesn’t offer 529 accounts, its parent company, Morgan Stanley, does. Like the other accounts, a 529 plan involves both an adult and a child (not necessarily the parent).
Steps to Open an E*Trade Account for a Minor
Opening a minor account at E*Trade is simple. Head to the broker’s website and scroll down to the Quick Links section to find the link for opening a new account. Ignore the purple button at the top, as it only shows the most common accounts.
After you click the right link, a new page will show all of E*Trade’s accounts. You’ll see several tabs at the top for different account types. Select Brokerage to find options for Custodial and Coverdell accounts.
Under the Retirement tab, you’ll spot a tile for the Minor IRA. Each tile has a Learn More link that explains the account details. You can click on the tile or the information page to start the application, which will take you to the form.
The Minor IRA and Coverdell account applications are handled through DocuSign and can be done online, just like the normal Custodial account application. Enter the details needed and verify them carefully.
You can also open these three accounts on E*Trade’s mobile app. Tap the Menu icon in the bottom-right corner and scroll to the link for opening a new account. You don’t have to sign in first.
No matter which method you choose, you must provide details for both the custodian and the minor, including tax ID numbers and birth dates.
Fees and Commissions on Minor Accounts
E*Trade does not add special fees or commissions on minor accounts. There are no yearly fees or low-balance penalties, and many products offer commission-free trading. There is also no minimum deposit.
Charles Schwab as an Alternative
E*Trade isn’t the only low-cost brokerage with options for minors. Charles Schwab also has all three minor accounts and offers a 529 plan. You can open any of these on Schwab’s website, and the custodial account can be opened using Schwab’s mobile app. Just tap the More icon in the bottom-right corner, then look for the link to open an account on the following page.
On Schwab’s website, find the orange-brown button in the top-right corner to start opening an account. On the next page, look for the link that shows all accounts (the minor ones won’t be on the initial list). After viewing all the account types, choose the one you want and begin.
Like E*Trade, Schwab does not charge commissions on U.S.-listed stocks and ETFs traded online in a minor account. Schwab also doesn’t have a minimum deposit for these tax-friendly accounts.
Learn more about the Charles Schwab custodial account.
Free Charles Schwab Custodial Account
Visit Schwab Website
Updated on 1/3/2025.
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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