If you’re looking for a broker that doesn’t require a minimum deposit, Robinhood may be a good option for you. But what about custodial accounts? Can you use Robinhood to hold your investments?
Does Robinhood Have Custodial Accounts?
Robinhood does not offer options of custodial accounts yet. Robinhood is one of the leading platforms for all kinds of trading and several investing.
Ranging from stocks to cryptocurrency, Robinhood provides a large number of services and options for trading to professionals.
Not only professionals, but Beginners get a good advantage while trading on Robinhood, as the app provides an easy-to-use interface and small investment options.
Most of the investors are still wondering if they can open a custodial account with their friends Or any other family members, even including their kid or their teenager.
However, this is different from a normal account on Robinhood. First of all, it is important to understand what a custodial account is.
A custodial account is an account opened by any family member for their related individuals who still lie under the minor category as per the age rules stated by law. This account is generated and operated by the major individual in this agreement.
However, after a certain age, all the details and specifications of the custodial account are transferred to the minor. This account is usually maintained with the sole purpose of investments for the offspring or grandkids which can ensure their secured future.
There are two major types of custodial accounts namely Uniform gift to minor act abbreviated as UGMA and the uniform transfer to minor act called the UTMA accounts.
You can choose any of these types of accounts for your minor which is dependent on your choice and requirements from the account.
The procedure and basic requirements are somewhat the same for the two, the major difference is caused when the results are obtained.
As far as Robinhood is under this question, Robinhood does not offer options of custodial accounts yet. However, with time they might offer these services to their customers.
Also Read: Does Robinhood Affect Credit Score?
Can I Open A Robinhood Account For My Child?
If you are a parent with long sight in terms of investments and financial security, you might wonder if you can open an account for your child. And if you are an existing user of Robinhood, you would like to open that account on the same platform you trust.
To make it clear, it is not possible to open a Robinhood account for your child. Because the Robinhood app allows only the users in a major category to open and operate a trading account. The users must have a minimum of 18 years of age to operate an account on Robinhood.
All the accounts for your children are counted under custodial accounts and Robinhood does not offer the option of having a custodial account to any of their users.
As soon as your child becomes a major i.e. becomes an adult of 18 years and above, you can open their account on Robinhood.
All the dealings related to cryptocurrency, stocks, mutual funds, etc will be then done and monitored by your child. However, if you still want, you can monitor their actions by guiding them. But all the transactions and trades will be under their name only.
What Trading Apps Allow Custodial Accounts?
For the current Robinhood account holders, the next question is that if not Robinhood then what apps allow custodial accounts? The answer to this is many. Different apps allow their customers to open and trade from an account that is under their surveillance but belongs to their minors.
Also, for every different need and requirement that varies from person to person, there are different apps. For example, if you want a custodial account only for investment or only for study expenses purposes in your child’s future.
Some of the most famous trading apps which allow their customers to open a custodial account are:
Charles Schwab
Charles Schwab is one of the best apps for custodial accounts. Preferred by all the parents, it fits suitable on almost all the investment types and purposes. However, it charges a fixed amount for trading.
Loved
loved is another app for custodial accounts which does not charge any extra amount on trading and operations of a custodial account. It’s a commission-free app. Loved is famous for its education resources offered to minors via this custodial account once they turn 18.
Vanguard
Vanguard is a special app designed for custodial accounts for account holders interested in mutual funds. All the parents or guardians looking for an opportunity to invest in mutual funds find vanguard a good option to open a custodial account.
Stockpile
for investment-driven parents, stockpiling is one of the best available options. Stockpile allows you to invest in various available options on the behalf of your minor till they turn old enough to take over the custodial account.
Many other well-established names in this list are:
- Acorns
- Merrill Edge
- Fidelity
- Ally invest
- E-trade and many more
You can read about all these apps and platforms in detail before making a rational decision about a custodial account.
Also Read: How to Find Penny Stocks on Robinhood?
Can You Have Two Accounts On Robinhood?
No, you cannot make two accounts on Robinhood for the same person. Robinhood has a security policy of allowing only one account on details of a single individual. You can not make two or more accounts on the details of a single person on Robinhood.
The app allows you to only make a single account with a unique username such that your privacy and the authenticity of the app are kept intact.
Thus, for every security number, only one account is permitted by Robinhood. Once your security number is registered with the platform, it can not be used for another account even after applying.
In case you want a separate account because you forgot your login data, need not worry. You can easily log in to your lost account by going to the forget password option on the login screen.
After some small steps directed to you on the screen and changing pages, you will be able to reset your password. Once your new password is activated, you can easily log in to your existing Robinhood account.
In any case, Robinhood will not allow you to create another account on your security number which is already registered with a running Robinhood account.
So, if you wish to open a separate account, you will have to close the current one. You can also port the type of account you have on Robinhood.
Can I Have A Robinhood Account Under 18?
Robinhood doesn’t provide an option of custodial accounts and hence, has a policy or a rule for the account holders. The app allows only the individuals counted as majors who are above 18 years on the date of application. Account-holders who have an age bar less than required are not passed in the criterion for a valid account holder of Robinhood.
Also, the app ensures that once you provide all the details, it is cross-checked with the data books, and only the appropriate candidates are given a green flag.
So, if you are about to turn 18, you can start looking for options of investment once your account is made on Robinhood. Until then, Robinhood will not allow you to operate, trade, invest or even generate an account.
Also Read: Why Does Robinhood Need My SSN?
Conclusion
Robinhood is a fit option for those who wish to trade and invest in various ways. However, if you have a kid or someone minor, you will need a custodial account for them.
As of now, Robinhood does not provide a service of custodial accounts for their customers. There are many other platforms on which you can make a custodial account of any kind i.e. UTMA Or UGMA accounts for your minor.
Depending on various future goals, you can select any of these platforms as your best choice for opening and operating an account on behalf of your minors i.e. your custodial account.
