Investment giant Fidelity will let your teens trade stocks for free
As interest in the stock market grows and stocks continue to soar, investment giant Fidelity said Tuesday that it will launch new investment accounts only for teenagers.
Offers for 13-17 year olds, limited to teens whose parents or guardians also invest with Fidelity, will include ways to save and deposit money, debit card and investment capabilities, all accessible on a mobile application.
Teens will be able to buy and sell US stocks, Fidelity mutual funds and ETFs without fees or commissions.
To open the account, the parent or guardian of a teenager must enter into a brokerage agreement with Fidelity, the the Wall Street newspaper reported, and after that, the account and the power to carry out transactions are transferred to the teenager.
Parents will be able to follow account activity and will retain the option to close the account at any time, on Newspaper reported, and teens will not be able to trade options or borrow money to fund trades.
âFidelity is committed to responsibly supporting young investors,â said Jennifer Samalis, senior vice president of acquisition and retention at Fidelity Investments, in a statement. âIt’s important to note that our goal for the Fidelity Youth Account is to encourage young Americans to learn by doing and foster meaningful family conversations about financial matters. “
$ 10.3 trillion. This is how much money Fidelity manages. It is one of the largest brokerage firms in the United States.
Old-fashioned brokerage firms and startups are actively seeking the next generation of investors. Greenlight, a startup that offers debit cards and investing services for children, was recently valued at $ 2.3 billion.
Fidelity’s new offering was in the works ahead of the memestock trading frenzy that spiked stocks and captivated investors earlier this year, the Newspaper reported. In January, retail traders from online communities, including Reddit’s r / WallStreetBets and the popular brokerage app Robinhood, which also aims to make investing easier for young investors, challenged Wall Street institutions that had bet that a handful of previously unpopular stocks would fall. This resulted in a short squeeze that skyrocketed Gamestock and other stocks and sparked a nationwide debate on regulation, risky trading and what some saw as commerce based on gamified apps.
Fidelity Pitch to American Teens: No-Fee Brokerage Accounts (The Wall Street Journal)
With debit cards and investments for kids, Fintech Greenlight start-up doubles valuation to $ 2.3 billion (Forbes)
It’s not just the crypto crash: here are all the market bubbles that have burst so far this year (Forbes)
Goldman Sachs says stock picking is getting harder, but Tesla, Twitter and Etsy have potential. here’s why (Forbes)