Frequently asked questions

The Schwab Teen Investor account is a taxable joint brokerage account for teens aged 13–17 and their parent or guardian. The account provides a hands-on teen investing experience, with the oversight of and controls provided by the parent or guardian. Teens can access their account on Schwab platforms, make investments, manage funds, and use a debit card with the approval of the parent or guardian. They can also improve their financial literacy with teen-friendly financial education.

The Schwab Teen Investor account allows a teen to own a joint account with their parent or guardian. Teens can make investments and manage their money in the account, while the parent or guardian is able to supervise and support their teen.

A custodial account is set up and managed by a custodian. The custodian is responsible for investing and disbursing assets for the benefit of the minor. The minor does not have account access until it is turned over to them when the custodianship terminates, per state law.

We're dedicated to protecting the account. The Schwab Teen Investor account has the same protections in place as other Schwab brokerage accounts. Learn more about SchwabSafe^® including the Schwab Security Guarantee. 

The Schwab Teen Investor account is accessible on all Schwab platforms including Schwab.com and our mobile app, as well as our powerful trading thinkorswim^® platform (desktop, mobile, and web). The teen does not need a smartphone to access their account.

No. The teen creates and maintains login credentials for the Schwab Teen Investor^TM account that are separate from those of their parent or guardian, and the teen cannot see any other Schwab accounts outside of the Schwab Teen Investor account. This includes other youth-related accounts of which the teen is the beneficiary (e.g., custodial accounts, 529s).

The parent or guardian will need to provide standard personal information for both the parent or guardian and the teen as clients of Schwab, including Social Security number, contact details (email and phone number), and employment status. To verify the identity of the teen, the parent or guardian will need to upload a valid form of identification on behalf of the teen. Acceptable documents include the teen's birth certificate, driver's license, state ID, or passport. The parent or guardian does not need to upload any documents for themselves.

To get started, navigate to the account open page on Schwab.com or the account open page on Schwab's mobile app. The parent or guardian must be the one to initiate account opening.

Teens are unable to open an account on their own. The parent or guardian will initiate the account open process and enter in the required information for both themselves and their teen. The teen will also participate in the application process by creating their credentials and reviewing the information entered before submitting the application.

Yes. The parent or guardian can open a Schwab Teen Investor^TM  account even if they don't have other Schwab accounts.

To ensure a smooth account opening process, we encourage the parent or guardian to have the necessary documents on hand before starting the application. For new-to-Schwab parents or guardians without any existing Schwab accounts, their progress will be saved after they create a login ID and password. If a parent or guardian leaves the application before submitting, they will receive reminder emails from Schwab to complete the application. Parents and guardians that already have existing Schwab accounts will need to start their application over.

As a client of Schwab, we use the teen's information to open the account and verify their identity as we do with all other clients. Once the account is opened, Schwab will be able to send account-related materials, onboarding information, and educational resources to the teen to support their investing journey.

Yes. The parent or guardian will need to open separate accounts for each eligible teen because each account is limited to one adult and one teen.

Each Schwab Teen Investor account is limited to one teen and one adult owner. If desired, the parent or guardian can add an Authorized Viewer to the account with View Only Authorization.

At this time, both the parent or guardian and the teen must be U.S. residents to open the Schwab Teen Investor account. Eligibility includes residents of the 50 U.S. states as well as residents of Puerto Rico and the U.S. Virgin Islands.

We offer multiple ways to fund and withdraw cash or assets from the account. The parent or guardian and the teen can fund the account through direct deposit, online transfer from an eligible Schwab account, wire transfer, and check deposit. The parent or guardian has the additional funding option of online transfers from a non-Schwab bank account. The parent or guardian and teen can withdraw funds using online transfer to an eligible Schwab account and check request. The teen has the additional option of a debit card and check writing (both with parental or guardian approval), and the parent or guardian has the additional option of online transfers to a non-Schwab bank account.

Yes. Family members or other adults who have Schwab accounts can transfer funds directly into the account. Contributors who are not Schwab clients can write a check that the teen or the parent or guardian can then easily deposit into their account through mobile deposit. We encourage anyone considering gifting funds to consult with a tax professional to discuss gift and other taxes prior to making the gift. Schwab does not provide tax advice on this account.

Yes. Recurring deposits into the account can be set up either from an outside bank account or via an internal transfer from another eligible Schwab account. Visit the Online Transfer page on Schwab.com for options to set this up.

Yes. As this is a jointly owned account, both the parent or guardian and the teen can withdraw money and/or assets from the account. Tax considerations may exist; a parent or guardian should speak with a tax professional regarding withdrawals from the account.

Primary investment products are available including most U.S. equities, Exchange-Traded Funds (ETFs), mutual funds, fixed income products, fractional shares, and Schwab Investing Themes^®. Schwab offers commission-free equity trading online with, with no account or trade minimums and no hidden fees. See our full pricing details here. 

The following investment products and features are not permitted on the Schwab Teen Investor account: margin, trading on unsettled funds, options trading, futures, FOREX, individual cryptocurrencies, leveraged and inverse Exchange Traded Funds (ETFs), alternative investments, lending products, American Depositary Receipts (ADRs), Over-the-Counter (OTC) stocks, Initial Public Offerings (IPOs), single-stock ETFs, volatility-linked ETPs, and exchange traded notes (ETNs). The account is also not eligible for Schwab's advice solutions.

Some of these restrictions are enforced using best-effort systematic controls, and discrepancies may occur. Parents should regularly monitor and supervise the account and talk to their teens about the risks of all investing products.

The Schwab Teen Investor account allows investing in Exchange-Traded Products (ETPs) that invest directly in various spot cryptocurrencies. A spot cryptocurrency ETP provides exposure to the price movement of the underlying cryptocurrency. The Schwab Teen Investor account does not allow for direct trading of individual cryptocurrencies. Cryptocurrency-related investments can be volatile and involve significant risk.

Yes. As a jointly owned account, both the parent or guardian and the teen can independently place trades within the account.

There are no minimum balance requirements to open the account and no minimum trade requirements.

There are no experience requirements. This account will meet the teen at their experience level. From beginners to more advanced investors, we have education materials to support the teen's journey every step of the way.

Upon opening the account, the parent or guardian will receive a welcome email with tailored resources to help them and their teen get started. The teen will also receive an onboarding education series focused on four foundational content themes: Personal finance essentials, Investing 101, How to invest in stocks, and How to trade at Schwab.

Yes. The teen can participate if applicable and Schwab will provide notifications and information to help make informed decisions for any such event.

Normal market hours are 9:30 a.m. to 4 p.m. ET. After-hours trading occurs after the markets close. Schwab clients can trade after hours from 4:05 p.m. to 8 p.m. ET on Schwab.com or on the Schwab Mobile app. While trading in the after-hours session can offer opportunities, there are unique risks to be considered, such as uncertain prices, lower liquidity, and no index values. Learn more about the rules, risks, and benefits.

The parent or guardian and their teen will receive tailored educational resources, designed to support their teen's path to financial literacy and help navigate the account offerings. This onboarding education series will focus on four foundational content themes: Personal finance essentials, Investing 101, How to invest in stocks, and How to trade at Schwab.

In addition to the tailored educational resources for teens, we provide various tools and resources to support diverse financial goals and varying levels of financial literacy. During onboarding, both the parent or guardian and the teen will receive helpful information and resources to help them get started.

When the teen account owner reaches the age of 18, he or she will be eligible to open a fully featured individual brokerage account. Assets in the Schwab Teen Investor account can be transferred over to the new account by the teen. If they desire, the parent or guardian and the teen can continue to use the Schwab Teen Investor account until the teen reaches age 21. Upon reaching the age of 21, the account will be restricted from all activities, including trading, funding, and withdrawals, until the former teen completes Schwab's new account terms and conditions.

As long as the account remains open, the parent or guardian will retain access, visibility, and ownership. If the teen chooses to open a new individual brokerage account once eligible at age 18, the parent or guardian will not have ownership of the new account if it is opened in the teen's name only. Alternatively, a new joint brokerage account may be opened, if desired. This would allow both the parent or guardian and the teen to maintain ownership over the account moving forward after both parties agree to new terms and conditions.

An account can be closed at any time via verbal or written request to Schwab. Only the parent has the authority to request account closure.

The parent or guardian must initiate and approve the opening of the account. Once the account is open, the parent or guardian will have full visibility and authority on the account as a joint account owner. This includes visibility into all transactions, statements, trade confirmations, and account activity. The parent or guardian has the authority to order or cancel a debit card on behalf of the teen and can close the account at any time.

The parent or guardian on the account assumes responsibility and oversight, on behalf of them and their teen, for all activities and actions taken in the account. Please reference the Schwab Teen Investor account Adult Supplemental Agreement for more information.

Yes. Parents or guardians can opt in to real-time trade notifications (via email and push notifications) by navigating to "Alerts" under the "Profile" tab on Schwab.com after logging in. Additionally, deposit and transfer notifications can be set up by navigating to "Alert Settings" under "Profile" on Schwab.com.

Schwab will contact the parent or guardian should any security or fraud-related items arise. Similarly, the parent or guardian should contact Schwab if they see any suspicious account activity.

The parent or guardian will be designated as the recipient of primary account communications from Schwab, including statements, tax docs, and trade confirms. Both the parent or guardian and the teen will be able to access this information via Schwab.com. Additionally, both the parent or guardian and the teen can sign up for real-time trade notifications and other alerts as desired.

To change the adult owner on the account, an eligible parent or guardian will need to open a new Schwab Teen Investor account with the teen. The parent or guardian on the original account will then need to transfer the assets to the new account.

If there is activity or any transactions on the account that are taxable events, tax reporting and forms will be issued under the teen's name and Social Security number. For general information regarding tax considerations, please visit our tax center.

Schwab does not provide tax advice on this account. Parents and guardians are encouraged to speak with their own tax professionals prior to depositing money in a Schwab Teen Investor account.

The parent or guardian can opt in to having a Schwab One^® Visa^® debit card issued to their teen during the account open process. The debit card will allow the teen to make purchases and withdraw cash using available funds from their account. A $100 funding requirement must be met before the debit card is issued. Once the funding requirement is met, the card will be delivered within ~7 business days.

Since there is no margin feature on the Schwab Teen Investor account, debit card transactions will be limited to available cash in the account.

The parent or guardian can set up Visa debit card alerts to stay updated on debit card activity. Alerts are managed through Visa. Please contact Visa for instructions.

No. Debit cards through the Schwab brokerage accounts can't be added to a mobile wallet at this time. Please check back for future updates.

Yes, the parent or guardian can call in to cancel the teen's debit card at any time. The parent or guardian is the only account holder who can authorize the issuance of a debit card and cancel the debit card for their teen.