Trading account for minors: Good or bad idea? | Business| Economy and finance news from a German perspective | DW
US financial services firm Fidelity Investments has launched trading accounts for children between the age of 13 and 17, as it looks to capitalize on a largely social media-fueled trading craze among younger millennials and Generation Z.
The no-fee account is available to teens whose parents or guardians have accounts with Fidelity. The service allows them to buy and sell US-listed stocks, exchange-traded funds (ETFs) and Fidelity mutual funds.
Fidelity’s latest offering comes amid a trading frenzy that has seen 18-19-year-olds flush with stimulus money swarm zero-commission day-trading apps such as Robinhood in search of quick returns and thrill.
“Teenagers are getting exposed to investment conversations through social media posts, which has created a demand,” said Sarah Coles, personal finance analyst at Hargreaves Lansdown. “And once you have a demand, someone will…