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Subject:  Re: Brokerage account for child Date:  11/23/2020  11:15 AM
Author:  rnam Number:  131358 of 132652

Thanks 2gifts and all others who took the time to share their expertise.

I posted for advice on Tax Strategies board so that I can pass on any tax related considerations of opening an account for a minor. The cash to be invested is not the nephew's wage income from doing chores and so cannot be in a Roth IRA. The money is gifts from family for birthdays, Xmas and rewards for good grades.

The other reason was to find a brokerage account which has no minimums, no trading or account fees and allows purchase of fractional shares, and allows minors to be the holder.

I found that Schwab, Fidelity and Interactive Brokers allow standard brokerage accounts for adults which satisfy all of the requirements. Schwab allows fractional shares for only S&P 500 companies, while Fidelity and IB allow virtually all US exchange-traded stocks, ADRs and even some Pink Sheet stocks. So Fidelity and IB would be better choices for my nephew's purpose.

I am still researching if they offer UTMA/UGMA accounts with all of those futures.

Thanks again
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