Fidelity Investments debuts brokerage account for teens
May 18, 2021 2:11 PM ETRobinhood Markets, Inc. (HOOD)HOODBy: Liz Kiesche, SA News Editor4 Comments
- Closely held Fidelity Investments introduces brokerage accounts for teens (13- to 17-years old) to help then save, spend, and begin investing.
- Parents and guardians can monitor the teen's activity in the Fidelity Youth Account, which combines educational content and tools with Fidelity's brokerage platform, mobile app, and simplified user experience. It also features zero subscription fees, zero account fees, no minimum balances, no domestic ATM fees, and zero online commissions.
- The account gives teens experience in saving and spending, including managing a debit card and having a choice of cash sweep options for any uninvested cash, the company said.
- The company is positioning the new account as a way that parents and guardians can teach teens about saving, investing and spending money.
- "Our goal for the Fidelity Youth Account is to encourage young Americans to learn through action and foster meaningful family conversations around financial topics," said Jennifer Samalis, Fidelity's senior vice president of acquisition and loyalty.
- When the teen turns 18 the account transitions to a standard brokerage account that offers more choice and flexibility.
- The new account may be a way Fidelity to get a younger customer base and compete with such fintechs as Robinhood (RBNHD), which has been criticized for the "gamification" of stock trading. In March, Robinhood said it would nix its "confetti design" that celebrates first trades and other actions in its app.