Teens can now trade stocks with Fidelity
Get smarter in just 5 minutes
Get the daily email that makes reading the news truly enjoyable. Stay informed and entertained, for free.
Sheeeeeesh Gen Z readers (did we use that right?), because Fidelity just launched trading accounts for 13-17 year olds. This means teens can open an account to make deposits, use a debit card, or trade stocks, mutual funds, and most ETFs. To sign up, they just need a parent with a Fidelity account, who will be able to keep tabs on their kids’ transactions but, unlike other products on the market today, won’t be able to block them.
If you feel like your fellow investors are still getting younger, that’s right: Investors opened 4.1 million new brokerage accounts on Fidelity last quarter, and 1.6 million were managed by people 35 and under, an annual increase of 223%.
- As young traders enter the market in droves during the pandemic, Fidelity wants to become the first and only active investment option for middle and high school students.
Looking forward…When teens with Fidelity youth accounts turn 18, their account switches to Fidelity’s standard brokerage offering for adults. So, this banking product is not just Gen Z’s first-class Finance 101, but a longer-term customer acquisition strategy.