Schwab Teen Investor™ account–Supplemental Parent and Legal Guardian Agreement

THIS SUPPLEMENTAL AGREEMENT CONTAINS IMPORTANT TERMS AND CONDITIONS REGARDING YOUR OBLIGATIONS WITH RESPECT TO THE SCHWAB TEEN INVESTING ACCOUNT. PLEASE CAREFULLY REVIEW THIS DOCUMENT PRIOR TO OPENING THE ACCOUNT. NOTWITHSTANDING THE TERMS AND CONDITIONS IN THIS SUPPLEMENTAL AGREEMENT, YOU AND YOUR TEEN REMAIN BOUND BY THE TERMS AND CONDITIONS OF THE SCHWAB ONE® ACCOUNT AGREEMENT AND ALL OTHER AGREEMENTS GOVERNING THE ACCOUNT.

The Schwab Teen Investor™ account (the "Account") is a jointly owned brokerage account between the parent or legal guardian ("You") and your 13- to 17-year-old child ("Teen"). The Account must have one parent or legal guardian and one Teen. You must be the parent or legal guardian of the Teen to open the Account.

Through this Supplemental Agreement, you authorize your Teen to open a joint brokerage account with you. The Account allows your Teen to buy and sell securities. You and your Teen will decide what securities to invest in and when to buy and sell those securities. Investing in securities has risks and the account value will fluctuate. You and your Teen could lose some or all the money in the Account.

Consistent with applicable law, you authorize Schwab to share personal information about you and your Teen with third parties, including third-party service providers. We share information about you consistent with our Corporate Privacy Notice: For more information about our privacy practices and notices, please visit the Charles Schwab Privacy Center.

You also authorize Schwab to speak with your Teen regarding Account-related items and to send marketing materials to your Teen relating to the Account.

You are responsible for notifying Schwab if you or your Teen notices any incorrect or suspicious activity in the Account. You are required to initiate trade disputes or claims of unauthorized electronic funds transfers on behalf of you and your Teen, and all parties agree to resolve all disputes through FINRA arbitration. You agree to indemnify and hold Schwab harmless from any losses related to trading or money movement activity initiated by your Teen in the Account.

1. Schwab Teen Investing Account Features

The Account is a joint brokerage account between you and your Teen. Through the Account, you and your Teen will be able to:

  • Trade stocks (including fractional shares) exchange traded funds (ETFs), mutual funds, and fixed income.
  • Invest in the trends, ideas, or personal values that interest your Teen in over forty different Schwab Investing Themes.
  • Choose whether to transact in the Account on the Schwab Mobile App, on Schwab.com, or on thinkorswim.
  • Choose to transact in after-hours trading.

The Account also provides you and your Teen with the ability to monitor the account, make trades, and move money in and out of the Account. If you choose to do so, you can order a debit card for your Teen to make purchases or cash withdrawals from the Account.

The Account does not permit:

  • Trading on margin;
  • Option trading;
  • Futures trading;
  • Forex trading;
  • Trading of Over the Counter (OTC) securities;
  • Trading of certain leveraged and inverse ETFs; and
  • Pledging account assets as collateral for a bank loan;

2. Your Role in the Schwab Teen Investing Account

Please complete all the information on the account application, both on your behalf and on your teen's behalf. By completing the account application, you are affirming that you are either the parent or the legal guardian of the Teen. By completing the account application, you agree:

  • To all of the terms and conditions contained in the Schwab One Account Agreement, as well as all other applicable agreements related to the account.
  • To be responsible for supervising all the activity in the Account including your Teen's trading and money movement.
  • To authorize Schwab to speak to your Teen regarding the Account and to authorize Schwab to send electronic communications, including marketing communications, financial educational and account-related materials to your Teen.
  • To promptly review all trade confirmations, account statements, and other account-related communications and to notify Schwab if you believe there is an error.
  • To make updates or changes to account information, as needed. You can update both your contact information as well as the account level email address and mailing address on Schwab's website. Your Teen can update their contact information on Schwab's website.
  • To remain as a joint tenant on the Account for as long as the Teen Account remains open.
  • To order a debit card for your Teen (if you choose to do so), and if you do order a debit card, to indemnify Schwab for all debit card charges made by your Teen. You also agree to notify Schwab in writing if you want to terminate your Teen's account-related debit card.
  • To provide Schwab with a "trusted contact, "if you wish, for the Teen.
  • To promptly notify Schwab of any account-related disputes, and, if you wish to do so, to initiate disputes against Schwab which will be resolved through FINRA arbitration on behalf of all account holders, as provided in the Schwab One Account Agreement.
  • To instruct Schwab to close the Account.
  • To pay any fees, expenses, or amounts due related to the Account.
  • To indemnify and hold Schwab harmless in connection with any losses incurred in the Account, any transactions in the Account, and any actions by your Teen relating to the Account or to their relationship with Schwab.

3. Deposits Into the Account and Tax Considerations

Your teen will be listed in Schwab's records as the primary taxpayer on the Account, and your Teen may be required to file tax returns for activity in the Account. Schwab will provide you and your Teen with tax reporting information concerning activity in the Account. Please consult with your tax professional before depositing money into the Account to discuss gift and other tax implications and to discuss the taxation of income or capital gains or losses in the Account. You agree that Schwab will not review the Account for tax issues and does not provide tax advice on this Account.

4. Age Eligibility and Account Conversion

The Account can only be opened by one parent or legal guardian and one 13–17-year-old Teen. The Account is not available for children under the age of 13, or for teens who are 18 years old or more. The Account cannot have more than one parent or legal guardian. The Account must always have one parent or legal guardian and one Teen as joint tenants.

When your Teen reaches the age of 18, the Account will be eligible to be converted to a Schwab One Brokerage Account in the name of your Teen. Your Teen will be required to complete new account paperwork to convert the Account. If the Account is not converted by the time of the Teen's 21st birthday, the Account will be restricted until your Teen completes new account paperwork.

5. Account Closure

You can close the Account and/or terminate any account feature, including the debit card, by providing verbal or written notice to Schwab. Similarly, Schwab can close the Account and/or terminate any account feature at any time and without providing you or your Teen advance notice. Your Teen is unable to close this account nor terminate account features.

6. Death and Incapacitation

Your Teen must immediately notify Schwab if you become disabled, die, or are otherwise unable to monitor the Teen's activity in the Account. The Teen's parent or legal guardian is required to always be a joint tenant on the Account. You must immediately notify us if your Teen becomes disabled, dies, or there is a change in your relationship to your Teen that would affect your participation in this Account.

7. Other Account-Related Agreements

In addition to the Schwab One Account Agreement, the Teen Investing Account Application, and this Supplemental Agreement, there are other documents, agreements and terms and conditions that may be applicable to this Account. A list of additional terms and conditions can be found at https://client.schwab.com/secured/agreements. If you or your teen opts in to any additional account features that are subject to additional terms and conditions, you agree to review and accept the additional terms and conditions on behalf of all account holders.