My kids are young (just a few months and a toddler) and I currently have their gift money in a HYSA. I want to move that money into a custodial investment account for each and contribute $100 every month for long term investing.
Which brokerages are easiest to use (Fidelity, Schwab, Vanguard, etc.) for custodial accounts? And for a simple long-term approach, what are your favorite ETFs for kids, S&P 500 or total market funds?
Would love some quick tips or recent experiences. Thanks!
Custodial Account for Kids
byu/Honest-Acanthisitta3 ininvesting
Posted by Honest-Acanthisitta3
8 Comments
I use Merrill Lynch because that’s where I have all my accounts (brokerage, 529, savings, UGMA).
I have a mix of ETFs like QQQ and SPY and some individual FAANG holdings.
Schwab was pretty easy, applied online and set up in about an hour
Any consequences for having a relatively large amount of money in the names once they hit 18, re: college?
Fidelity is the best for this. Fractional VOO, set and forget.
We have our custodial with Vanguard, where we also have our 529 for our child.
Fidelity over Schwab due to the ability to purchase fractional shares. I also prefer fidelity’s app interface over Schwab
I recommend Fidelity over Schwab for custodial accounts. It is easier to buy fractional shares, they pay interest on cash, and they allow option trading. Schwab doesn’t pay interest on cash (at least nothing meaningful), and they don’t allow options trading with custodial accounts.
Doesn’t it count against them for financial aid though?