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Robinhood has expanded its product offerings significantly in recent years, but unfortunately, it's not yet possible to open a custodial account with this broker. However, the broker has stated that it plans to offer more account types in the future, so it's quite possible that a custodial account will eventually be available.
In the meantime, here are a couple of excellent alternatives if you're looking to open a custodial account, as well as some important facts to know about these financial tools before you get started.
On Robinhood's Secure Website.
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A top pick for beginners, Robinhood combines $0 commission trades, an easy-to-use app, and a rare retirement deposit match.
$0 on trades of stocks, ETFs and their options. Other fees may apply.
$0
1 Free Stock after linking your bank account (stock value range $5.00-$200)
On Robinhood's Secure Website.
Robinhood doesn't offer custodial accounts yet, but there are some top choices to explore instead.
Acorns can be a great option for people who want to open a custodial account but want to put the account's investments on autopilot. It offers a variety of account types, including UGMA and UTMA accounts for minors.
After opening an Acorns account, you can fund it with one-time contributions, or by setting up recurring deposits. You can also use a feature that rounds up purchases you make on a debit or credit card and invest the difference. Once you contribute money, Acorns will allocate it to a portfolio of investment funds that are tailored to your (or the minor's) risk tolerance and financial goals.
Acorns has an easy-to-use investing app and charges a flat fee of as little as $3 per month for its services. The biggest drawback is that you can't buy individual stocks and funds, but if you're looking to simplify the investing process, Acorns can be a top choice.
Fidelity is one of the largest and most feature-packed brokerage firms in the United States and gives investors the chance to open a custodial account. With a Fidelity UGMA or UTMA account, you can invest on behalf of a minor and buy virtually any stocks, bonds, ETFs, or mutual funds that you want.
Fidelity has no trading commissions on stocks and ETFs, as well as on thousands of mutual funds. It has a top-rated app and an excellent trading interface. Plus, it offers extensive educational resources and stock research reports that can help you make wise investing decisions for the new account.
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:
The exact process varies by broker, but opening a custodial account is a quick and easy process. You'll fill out a short application, provide some basic information, and fund the account.
To open a custodial account, you'll need some basic information, including:
Be sure you have this handy for yourself as well as the minor who will be the legal owner of the account.
You'll also need information for your successor custodian, who is the person or entity who will oversee the account if something happens to you before the minor comes of age. Depending on your situation, you might need an additional form -- for example, if you're planning to name a trust as the custody agent.
As mentioned, the process varies from broker to broker, but there are four general steps involved with setting up a custodial account.
We aren't going to get into specific investment recommendations, trading strategies, or anything about what specifically to invest in. But if you're using a UGMA or UTMA account, there are a few basic strategies that can be helpful.
First, be sure you're focusing on long-term potential. The biggest advantage the minor has is time, so the best plan is to buy investments you (or they) can potentially hold for many years. There are appropriate places for speculation and short-term trading, but a custodial account for a minor isn't typically one of them.
Second, be sure to diversify. This can be as simple as buying a few broad-based index funds, or if you're a more seasoned investor, creating a portfolio of many different stocks.
Finally, focus on tax efficiency. One key point to know is that money in a custodial account is the legal property of the minor. With rare exceptions, minors often have no income tax liability for dividend income or capital gains (unless they get a lot of them), so it can be a tax-efficient way to hold income investments.
A custodial account is a taxable brokerage account with one key feature. It is designed for an adult -- the custodian -- to invest on behalf of a minor child. This can be your child, a grandchild, a niece/nephew, a friend's child, or any minor.
There are two main types of custodial accounts: Uniform Gift to Minors Act (UGMA) account and Uniform Transfers to Minors Act (UTMA) account.
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 2026.
| Broker | Best For | Commissions | Learn More |
|---|---|---|---|
5.00/5
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 |
Full-service investing at every experience level | $0 commission for online U.S. stock and ETFs*. No account fees****. |
Learn More for Fidelity
On Fidelity's Secure Website. |
4.90/5
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-cost investing with a full-featured platform | $0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares. |
Learn More for Charles Schwab
On Charles Schwab's Secure Website. |
4.80/5
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 on trades of stocks, ETFs and their options. Other fees may apply. |
Learn More for Robinhood
On Robinhood's Secure Website. |
As of September 2024, Robinhood does not offer custodial accounts. However, Robinhood's management has said that it plans to roll out additional new account types over time, so it's possible that one will be offered in the future.
The age at which the custodianship ends depends on the rules of the specific account. Some states require the custodianship to terminate when the minor turns 18, while the age of majority is 21 in other states. In some cases, you can choose an age. It depends on the rules of the particular state.
A 529 plan is designed specifically for the purpose of saving money for educational expenses, while money in a custodial account can be used for any purpose. A 529 plan remains the legal property of the adult who opened the account, while custodial accounts are the legal property of the minor. Finally, 529 plans have certain tax advantages, such as tax-free withdrawals for college, while custodial accounts are standard (taxable) brokerage accounts.
Motley Fool Stock Disclosures
Matt Frankel has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Robinhood disclosure
Margin borrowing increases your level of market risk, as a result it has the potential to magnify both your gains and losses. Before using margin, customers must determine whether this type of strategy is right for them given their investment objectives and risk tolerance. Regardless of the underlying value of the securities you purchased, you must repay your margin loan. Robinhood Financial can change its maintenance margin requirements at any time without prior notice. If the equity in your account falls below the minimum maintenance requirements (varies according to the security), you’ll have to deposit additional cash or acceptable collateral. If you fail to meet your minimums, Robinhood Financial may be forced to sell some or all of your securities, with or without your prior approval. For more information please see Robinhood Financial’s Margin Disclosure Statement, Margin Agreement and FINRA Investor Information.
Margin trading involves risk and may not be suitable for all investors. Borrowing on margin increases your level of market risk and can amplify both gains and losses.
Robinhood Financial may change maintenance margin requirements at any time without prior notice. If the equity in your account falls below minimum maintenance requirements, you may need to deposit additional cash or collateral. If those requirements are not met, Robinhood Financial may sell securities in your account without prior approval.
The 3% matching on annual contributions requires a subscription with Robinhood Gold ($5/mo) and customers must stay subscribed to Gold for 1 year from the date of the first eligible deposit to keep the full Gold match. The funds that earned the match must be kept in the account for at least 5 years to avoid a potential Early IRA Match Removal Fee. Match rate subject to change. Non-Gold customers receive a 1% match. Offer only applies to self-directed IRAs. For more information refer to the IRA Match FAQ.
You must have compensation (wage income) in order to contribute to an IRA. Funds being contributed into or distributed from retirement accounts may entail tax consequences. Contributions are limited and withdrawals before age 59 1/2 may be subject to a penalty tax. Robinhood does not provide tax advice; please consult with a tax adviser if you have questions.
The Robinhood IRA is available to any U.S. customer with a Robinhood brokerage account in good standing.
The 3% matching on annual contributions requires a subscription with Robinhood Gold ($5/mo) and customers must stay subscribed to Gold for 1 year from the date of the first eligible deposit to keep the full Gold match. The funds that earned the match must be kept in the account for at least 5 years to avoid a potential Early IRA Match Removal Fee. Match rate subject to change. Non-Gold customers receive a 1% match. Offer only applies to self-directed IRAs. For more information refer to the IRA Match FAQ.
You must have compensation (wage income) in order to contribute to an IRA. Funds being contributed into or distributed from retirement accounts may entail tax consequences. Contributions are limited and withdrawals before age 59 1/2 may be subject to a penalty tax. Robinhood does not provide tax advice; please consult with a tax adviser if you have questions.
The Robinhood IRA is available to any U.S. customer with a Robinhood brokerage account in good standing.
Robinhood Strategies charges an annual management fee of 0.25% on the net portfolio value of each managed account. Eligible Robinhood Gold subscribers pay no management fees on the portion of their managed account net portfolio value that exceeds $100,000, thereby limiting the annual management fee to $250. Other fees apply.
All investments involve risk and loss of principal is possible.
Brokerage services are offered through Robinhood Financial LLC, ("RHF") a registered broker dealer (member SIPC) and clearing services through Robinhood Securities, LLC, ("RHS") a registered broker dealer (member SIPC).
RHF and RHS are not banks. All are separate but affiliated entities. Securities offered by RHF are not FDIC insured and involve risk, including possible loss of principal.
Robinhood Gold is a subscription-based membership program of premium services offered through Robinhood Gold, LLC.
Portfolio management of managed accounts by Robinhood Asset Management, LLC (“Robinhood Strategies”), an SEC-registered investment advisor.
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before trading options.
Cryptocurrency trading is offered through Robinhood Crypto, LLC (NMLS ID 1702840). Trading and holding digital assets involves significant risk, including the risk of substantial loss. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected.
*Trading and owning digital assets involves significant risk, including the risk of substantial loss. Cryptocurrency trading is offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the
New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected.
** Network fees may apply. Availability may be subject to regulatory approval in certain states.
Fidelity disclosure
Investing involves risk, including risk of loss
* - $0.00 commission applies to online U.S. equity trades and exchange-traded funds (ETFs) in a Fidelity retail account only for Fidelity Brokerage Services LLC retail clients. Sell orders are subject to an activity assessment fee (historically from $0.01 to $0.03 per $1,000 of principal). Other exclusions and conditions may apply. A limited number of ETFs are subject to a transaction-based service fee of $100. See full list at Fidelity.com/commissions. Employee equity compensation transactions and accounts managed by advisors or intermediaries through Fidelity Institutional® are subject to different commission schedules.
**Fidelity Crypto® is offered by Fidelity Digital Assets®. Investing involves risk, including risk of total loss. Crypto as an asset class is highly volatile, can become illiquid at any time, and is for investors with a high risk tolerance. Crypto may also be more susceptible to market manipulation than securities. Crypto is not insured by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation. Investors in crypto do not benefit from the same regulatory protections applicable to registered securities. Fidelity Crypto® accounts and custody and trading of crypto in such accounts are provided by Fidelity Digital Asset Services, LLC, which is chartered as a limited purpose trust company by the New York State Department of Financial Services to engage in virtual currency business (NMLS ID 1773897). Brokerage services in support of securities trading are provided by Fidelity Brokerage Services LLC (“FBS”), and related custody services are provided by National Financial Services LLC (“NFS”), each a registered broker-dealer and member NYSE and SIPC. Neither FBS nor NFS offer crypto as a direct investment nor provide trading or custody services for such assets. Fidelity Crypto and Fidelity Digital Assets are registered service marks of FMR LLC.
***Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read Characteristics and Risks of Standardized Options. Supporting documentation for any claims, if applicable, will be furnished upon request.
****Zero account minimums and zero account fees apply to retail brokerage accounts only. Expenses charged by investments (e.g., funds, managed accounts, and certain HSAs) and commissions, interest charges, or other expenses for transactions may still apply. See Fidelity.com/commissions for further details.
