Robinhood for Kids?
- Robinhood does not allow investing for those under 18.
- Investing as a minor requires opening what is known as a custodial accounts.
- Until now custodial investing services have been expensive.
- Loved lets you invest for anyone under 18, commission-free.
Until now it’s been difficult to get started investing when young. Everyone knows the earlier you start the better off you will be when you are older. Adults have so many options - from free investing via Robinhood, to investing platforms like Stash, Acorns and roboadvisors like Wealthfront and Betterment. But if you’re a minor and under the age of 18, most providers, including Robinhood requirement, don’t offer custodial accounts, while those that do charge expensive fees. We have exciting news Loved now offers custodial investing that 100% free.
Kids deserve to benefit from investing too and that is why we created Loved, unlocking “custodial accounts” for every next generation. Custodial accounts are designed to start those under 18 as investors. Think of them like a flexible way to invest, much like you invest for yourself, but in a trust account that an adult controls until the child reaches the minimum age of majority, which is 18 or 21 depending on your state. They offer great flexibility to invest how you like and withdraw anytime so long as funds are used to benefit the child. At the age of majority, the account gets transferred into the young adults name. Because a child’s first $2,200 of annual unearned income is tax free there are advantages to using a custodial account versus other options depending on your personal circumstances.
Who Offers Custodial Accounts?
When investing your success is often impacted by the commissions, brokerage and fund fees charged by providers. This can impact sometimes more than the outperformance on your investments themselves. Until now providers of custodial accounts have charged trade fees of almost $10 per trade, monthly subscription charges like Stash or investment minimums that make getting started difficult source. Loved lets you invest for and on behalf of minors under the age of 18 with zero brokerage or subscription charges and you can start with as little as $1.
Loved Let’s You Invest for Minors Free of Charge, Start with just $5
With Loved you can open a custodial account and invest for anyone under 18 without brokerage, trading or subscription fees. You can start kids investing with just $5 and you just need an adult to start you off. Loved is now available on iOS and Android.