E*TRADE Custodial Account
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An E*TRADE from Morgan Stanley custodial account allows you to invest and save on behalf of the minors in your life. While the money invested belongs to the child, as the account custodian, you're in charge of managing it. Once a child reaches the age of 18 or 21 (depending on the state), the account is turned over to them to use as needed.
Keep reading to learn more about the E*TRADE custodial account, including how to open one for a child.
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Open and fund a brokerage account and get up to $1,000. Terms apply.
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The benefits of a custodial account are numerous, and include:
In addition, an E*TRADE custodial account offers tax advantages:
Our experts reviewed over 47 stock brokers, looking for low fees, great customer service, and more. Click below to go to our list of the best custodial brokers we've seen:
It's quick and easy to open a brokerage account for a child through E*TRADE from Morgan Stanley. Provide basic information about yourself and the child and set up a username and password. Once done, you'll need to link a funding source, like your bank account.
An account can be opened online, by phone, or by mail. Here's a list of documentation and general information you'll need to gather before opening a custodial account.
If you choose to fund the account by transferring money, be prepared to:
If you opt to link your custodial account by mail, your best move is to contact E*TRADE to request instructions. However, you may need to supply the following:
Setting up an E*TRADE custodial account is relatively straightforward. Here's what you'll need to do:
Without getting into specific investment recommendations, there are a few basic tips that can help when managing a custodial account:
Finally, you may want to speak with a financial advisor before making your final selections. They can help you consider issues like tax efficiency.
A custodial account is a type of investment account generally created by a parent or grandparent to benefit a minor child. Each dollar in a custodial account is a gift to the beneficiary (the minor). Although the minor owns the account from day one, it's not turned over to them until they reach the age of majority in their particular state.
E*TRADE also offers these types of youth accounts:
We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2025.
| Broker | Best For | Commissions | Learn More |
|---|---|---|---|
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Managing your finances under one roof | $0 for stocks, $0 for options contracts |
Learn More for SoFi Active Investing
On SoFi Active Investing's Secure Website. |
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Low mutual fund fees. | $0 per trade |
Learn More for J.P. Morgan Self-Directed Investing
On J.P. Morgan Self-Directed Investing's Secure Website. |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Low fees on stocks, ETFs, crypto, and options | $0 for stocks, ETFs, and options |
Learn More for Robinhood
On Robinhood's Secure Website. |
It does. Plus, E*TRADE offers thousands of investment options from which custodians can choose.
It depends on the state. In some states, a child reaches their majority at 18; in others, it's not until 21 (or older). When a minor reaches their age of majority, the custodial account is turned over to them.
An E*TRADE 529 plan is designed specifically to pay for a child's education, while the funds in a custodial account can be used for any purpose.
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E*TRADE services are available just to U.S. residents.
E*TRADE services are available just to U.S. residents.
E*TRADE services are available just to U.S. residents.
