Charles Schwab launched the Schwab Teen Investor account on March 26, opening the stock market to young people between 13 and 17 years old.
The account is structured as a joint brokerage account with a parent or legal guardian. It comes with no minimum deposit, no commissions on listed equity trades, and no account fees.
Teens who complete an online investing education course within 45 days of opening the account receive $50 in fractional shares split across the top five stocks in the S&P 500. That incentive is tied directly to finishing the course, not just signing up. It is a small but deliberate nudge toward learning before trading.
What the account allows and what it does not
The account gives teens access to a meaningful range of investment products. Here is what is available and what is off limits:
- Available: Stocks, fractional shares, most ETFs, mutual funds, and fixed income securities. Accessible through Schwab’s mobile app, Schwab.com, and the thinkorswim trading platform.
- Also included: Debit card access to cash held in the account, direct deposit funding, and live coaching sessions with Schwab Education Coaches.
- Not available: Margin trading, options, futures, FOREX, and leveraged or inverse ETFs. These are locked out by design.
- Parental oversight: Both the teen and parent can trade and move money in the account. Parents can monitor all activity and engage as needed.
- Support: 24/7 access to Schwab professionals by phone or chat, plus the Satisfaction Guarantee and Security Guarantee.
The account also includes a New Investor Content Hub with educational videos and resources from Schwab Moneywise, the Charles Schwab Foundation’s financial literacy program. Topics cover saving, trading basics, and personal finance essentials.
Why Schwab is launching a teen account now
The launch is backed by Schwab’s own survey data. The company surveyed 1,000 teens aged 13 to 17 and 1,000 parents of teens in October 2025.
The results showed that 70% of teens are “very” or “extremely” interested in investing. And 73% of parents said it is very important for their teenagers to learn about investing.
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The survey also found that 87% of teens want their parents involved in their investing activity. On the parent side, 91% want to be involved in setting up a brokerage account for their teen. That mutual enthusiasm is part of what Schwab is betting on with this product.
When teens were asked what they most want to invest in, the top answers were artificial intelligence at 34%, video games at 28%, and social media at 26%.
And 60% said they prefer investments that grow steadily over time rather than ones that move quickly up and down. That is a more cautious profile than the meme-stock narrative around young investors might suggest.
“Young people want to invest earlier than ever before,” said Jonathan Craig, Head of Retail Investing at Charles Schwab. “It’s critical that we help teens get off on the right foot by combining a teen-friendly experience with the education, tools, and support they need to develop a strong understanding of investing.”
Schwab also noted that Gen Z comprised nearly a third of all new retail client accounts the company opened in 2025. The teen account is a direct extension of that trend, aimed at capturing younger investors before they reach adulthood.
Teens are most interested in investing in artificial intelligence, video games, and social media.
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How this differs from custodial accounts
The Schwab Teen Investor account is not a custodial account like a UTMA or UGMA. In traditional custodial accounts, assets transfer irrevocably to the child once they reach adulthood, typically between 18 and 21, depending on the state.
The joint structure Schwab is using does not have that automatic transfer mechanism. Parents retain flexibility in how long they stay involved. There is no forced handover at 18.
That distinction matters for families who want to use this as a teaching tool without permanently transferring assets before the teenager is ready to manage them independently.
Craig framed the long-term vision clearly. “With the Schwab Teen Investor account, people can start investing at Schwab at a young age, build a solid foundation of knowledge and positive investing behaviors, and grow with us throughout their investing lifetime,” he said.
What this means for parents and teen investors
The account removes most of the practical barriers that have historically kept teenagers out of the market. No minimum deposit means a family can start with whatever amount makes sense. The education requirement tied to the $50 bonus creates an incentive structure that rewards learning before trading.
The restricted product list is also worth noting. Locking out options, margin, and futures is a meaningful guardrail. These are the products most likely to result in significant losses for inexperienced investors. Their absence makes the account far more appropriate for someone just starting out.
Schwab is also positioning this as the start of a longer relationship. Teen accounts are designed to feed into adult accounts, IRAs, and other Schwab products as users get older. For Schwab, acquiring a customer at 13 is a very different proposition than acquiring one at 30.
For parents looking to introduce their children to investing, the joint structure offers something custodial accounts do not: ongoing visibility without a hard handover date. The teen builds a portfolio and a habit. The parent stays in the picture, as long as both find it useful.