Warren Buffett, the world’s most famous investor, is 90. But there are plenty of people much, much younger who are interested in stocks. Fidelity is going after that market.
The brokerage giant announced Tuesday that it is setting up a new Fidelity Youth Account plan for 13- to 17-year olds. The teens’ parents must already have Fidelity accounts, and the moms and dads will have full access to monitor their kids’ spending and investing activity. A spokesman for Fidelity said in an email to CNN Business that parents and children both must sign customer agreements but “ultimately the parent is responsible for the activity in the account.” Teenage investors will have some autonomy, however, as parental approval is not required to make transactions. Fidelity said that teenage clients will be able to buy and sell stocks, ETFs and mutual funds. They’ll also have the option to purchase fractional shares of higher-priced stocks for as little as $1. And once the teen turns 18, the youth account automatically transitions into a standard one. The new accounts will have no commissions or other fees, no minimum balance requirements and come with a debit card. The teens’ accounts don’t include any access or links to their parents’ accounts.
