Kids... Where's Robinhood?

By David Hannes December 04, 2018

Kids... Where's Robinhood?


  • Robinhood does not allow investing for those under 18

  • Investing as a minor requires opening as a custodial accounts

  • Until now custodial investing services have been expensive

  • Loved let's you invest for anyone under 18, free of charge

Investing for Someone Under 18

Until now, if you wanted to invest for or as someone under 18, there's never been an easy way to get kids started investing. Adults have so many options - from free investing via Robinhood, to automated investing with Acorns and roboadvisors like Wealthfront and Betterment. But if you're a minor and under the age of 18, most providers, including Robinhood, don't offer custodial accounts, while those that do charge expensive fees. We have exciting news that Loved now offers custodial investing, 100% free. ### What is a Custodial Account?

Kids deserve to benefit from investment too, that's why we created Loved for "custodial accounts". Custodial accounts are designed to start investing for those under 18 (and in some states 21). Think of them like a flexibile way to invest, much like you invest for yourself, but in a trust account that you control until they reach the 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 $1,050 of annual unearned income is tax free and the second $1,050 at the child's very low tax rate, there are advantages to using a custodial account versus other options, depending on your personal circumstances.

Custodial account have two varieties - Uniform Gifts to Minors (UGMA) and Uniform Transfers to Minors Acts (UTMA). The difference may become important only if you plan on contributing or transferring assets to the custodial accounts outside Wealthsimple, in which case a UTMA is a better option.

Who Offers Custodial Accounts?

When investing, your success is often impacted by the commissions, brokerage and fund fees charged by providers, more so than a small amount of outperformance you may be able to achieve. Until now, providers of custodial accounts have charged trade fees of almost $10 per trade, monthly subscription charges like Stash Invest or investment minimums that make getting started difficult (source). Well now, Loved let's 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 $5.

Loved Let's You Invest for Minors Free of Charge, Start with just $5

Now 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'll need an adult to start you off. Loved is coming soon. Sign up for early access to Loved today.


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