Teaching teenagers about the market early on can be one of the best financial lessons a parent passes on, and both Fidelity and Charles Schwab have accounts built specifically for the job.
The Fidelity Youth Account, an individual brokerage account for teens, lets teens ages 13 to 17 invest in most U.S. stocks, ETFs, Fidelity mutual funds and fractional shares, with no account or subscription fees, plus no minimum deposit requirements. The teenager is the owner on the account.
Newer on the scene, the Schwab Teen Investor Account is a joint brokerage account for teens (also ages 13 to 17) and their parent or legal guardian with a similar fee-free structure. With Schwab, teens can trade stocks, ETFs, mutual funds and fractional shares.
Here's how the two options stack up against one another, including a look at their investment options, fees, parental controls and educational tools.
Fidelity® Youth Account
Minimum deposit and balance
Teens aren't tied to any account minimums and there are no monthly fees
Fees
$0 commissions for online U.S. stocks*
Bonus
For a limited time: When you (parent or guardian) initiate the opening of a new Youth Account and your teen (aged 13 to 17) downloads the Fidelity Mobile® App and activates the new account, your teen will receive a $50 deposit as a reward1
Investment vehicles
Brokerage and trading: Fidelity® Youth Account
Investment options
Stocks, ETFs and mutual funds
Educational resources
Teens can access a financial curriculum made just for them to learn about saving, spending and investing
Terms apply.
Pros
- No account minimums or monthly fees
- Educational investing resources customized for young teens
- Requires parental oversight: In order for a teenager to sign up, their parent or guardian must already have an existing Fidelity account. Parents can monitor their child’s account activity and set up notification alerts for trades, transactions and spending
- Teen users get access to a free debit card with no subscription fees, no account fees, and no minimum balances
Cons
- Only available to teens aged 13 to 17
- In order to sign up as a teen, parent or guardian must already have an existing Fidelity account
*$0.00 commission applies to online U.S. equity trades and Exchange-Traded Funds (ETFs) in a Fidelity retail account only for Fidelity Brokerage Services LLC retail clients. Sell orders are subject to an activity assessment fee (from $0.01 to $0.03 per $1,000 of principal). Other exclusions and conditions may apply. See Fidelity.com/commissions for details. Employee equity compensation transactions and accounts managed by advisors or intermediaries through Fidelity Clearing & Custody Solutions® are subject to different commission schedules.
The Fidelity Youth Account can only be opened by a parent/guardian. Account eligibility limited to teens aged 13-17.
1Limited Time Offer. Terms Apply. Before opening a Fidelity Youth Account, you should carefully read the account agreement and ensure that you fully understand your responsibilities to monitor and supervise your teen's activity in the account.
Schwab Teen Investor™ Account
Minimum deposit and balance
No minimum initial deposit and no account maintenance fees
Fees
$0 commissions on online listed equity trades; no hidden fees
Bonus
Teens who complete the Quick Start to Stock Investing course within 45 days of opening their account receive $50 in fractional shares split across the top five stocks in the S&P 500. Terms apply.
Investment vehicles
Taxable joint brokerage account (Schwab Teen Investor™ Account)
Investment options
ETFs, mutual funds, fixed-income products (such as U.S. Treasury Bills and bonds), fractional shares, and Schwab Investing Themes (curated investments in specific sectors like cybersecurity or AI)
Educational resources
Teens get access to an education series covering four themes: personal finance essentials, Investing 101, how to invest in stocks, and how to trade at Schwab, plus ongoing access to Schwab's education hub with videos and articles for investing beginners.
Pros
- No account minimums or monthly fees
- Educational investing resources tailored for teen investors, including a New Investor Content Hub and an interactive “Quick Start to Stock Investing” course
- Joint account structure gives parents full visibility into all transactions, statements, trade confirmations and account activity, with the ability to set up alerts for trading activity and money transfers
- Teen debit card available; parents can set up spending alerts and must be the ones to open or close the debit card account
- Parent does not need to already have an existing Schwab account to open one for their teen
- 24/7 access to Schwab professionals by phone or chat
Cons
- Only available to teens aged 13 to 17
- Debit card won’t be issued until a $100 funding requirement is met
Fidelity Youth Account vs. Schwab Teen Investor Account
The Fidelity Youth Account is a teen-owned brokerage account that a parent opens for their kid. Parents must have an existing Fidelity account or open one at the same time. This is different from a joint or custodial account, where the account is usually set up and managed by an adult for the minor. With the Fidelity Youth Account, the teen is the legal owner and sole investment decision-maker.
The Schwab Teen Investor Account takes the opposite approach. It's a joint brokerage account where the parent and teen invest together; they're both owners and can both trade and move money in the account.
Investment options
The Fidelity Youth Account lets teens invest in most U.S. stocks, ETFs and Fidelity mutual funds. Fractional shares are also available. Though not an investing option, teens can access a debit card as well to make purchases from their brokerage account.
The Schwab Teen Investor Account gives teens access to most U.S. equities, ETFs, mutual funds and fractional shares. Teens can also invest in "Schwab Investing Themes," which are curated baskets of up to 25 stocks organized around trends or personal values such as active lifestyle, cancer research and discount/luxury lifestyles. Plus, teens can level up their investing experience with Schwab's "thinkorswim" trading software. Parents on the account can opt in for a debit card for their teen as well.
Bottom line: Fidelity and Schwab offer similar investment options, plus access to a debit card. Schwab is a bit more unique in that it has a thematic investing option for teens who are passionate about a certain industry, and it offers an advanced trading platform.
Fees
The Fidelity Youth Account offers commission-free trading, plus has no subscription fees, no account fees and no minimum balance to open.
The Schwab Teen Investor Account has no account minimum or maintenance fees, as well as offers $0 commissions on online stock and ETF trades.
Bottom line: Fidelity's and Schwab's teen investing accounts offer no-fee structures that are pretty in line with one another.
Parental controls and oversight
A parent or guardian must open the Fidelity Youth Account on behalf of their minor (and they can close the account at any time). From there, parents can view balances and transactions, monitor investing activity, as well as access account activity alerts. Parents cannot place trades or withdraw money from the account, since the teen is the owner. Parents can transfer money from their own Fidelity account into the Fidelity Youth Account. Once the teen turns 18, the Fidelity Youth Account can convert to a standard Fidelity brokerage account.
Parents and teens can open a Schwab Teen Investor Account together; a parent or guardian must initiate and approve the account (and can close the account at any time). As a joint account, parents and teens both have the ability to trade and move money in and out, with parents able to set alerts for trading activity and transfers. Parents also control whether the teen gets a debit card. The teen on the account can have full ownership once turning 18 or they can open an individual brokerage account and transfer assets (the latter which must be done at age 21 regardless).
Bottom line: Fidelity allows the teen to be in full control of their brokerage account, with parents having transparency and the ability to close the account whenever needed. Schwab offers more of a collaborative approach as the teen and parent/guardian invest together.
Educational tools and app experience
With the Fidelity Youth Account, teens have access to educational investing articles and videos. Within the app, teens can follow investments by sector and see what stocks are trending.
The Schwab Teen Investor Account incentivizes learning from the start. Teens who complete the "Quick Start to Stock Investing" course within 45 days of account opening receive $50 in fractional shares across the top five S&P 500 stocks. From there, teens can access Schwab's broader education hub with videos and articles for beginners like "Schwab Coaching" YouTube videos.
Bottom line: Fidelity and Schwab both offer educational articles and videos. Schwab gives teens a financial nudge to actually complete coursework.
Which account is right for your family?
Because Fidelity and Schwab offer similar investment options and fee structures, the biggest factor in deciding which account to go with is how involved you want to be.
The Fidelity Youth Account is the better pick if your goal is to give your teen genuine ownership and autonomy over their investing decisions, with you in a supervisory role rather than as a co-pilot.
The Schwab Teen Investor Account is built for parents who want to invest alongside their teen, guide trades in real time and stay actively engaged in the process.
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