It’s time to talk about how to open an investment account for your child with the $1000 you’ve set aside for this purpose.
What type of account should I open?
I opened a custodial account for my daughter. I currently control it. She will take over the account when she is 21.
I think this is a good place to start.
Here is a list of brokerage firms you may consider:
|Firm||Commission (Per Trade)||Minimum Account Balance|
|TD Ameritrade||$6.95||No minimum|
|Merrill Edge||$6.95||No minimum|
I, myself have accounts with TD Ameritrade.
I also have a personal account with Robinhood, although they don’t currently offer a custodial account for minors. I mention it here because Robinhood doesn’t charge a commission, and as such is a wonderful vehicle through which to start a personal investment account for yourself with very little money. (For more detail, please check out my short investment guide, The Stock Market is For Everyone.)
Watch this space tomorrow. I’m going to be sharing an episode of one of my favorite podcasts that is geared specifically toward beginning investors of all ages!