Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
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
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.