can i do stocks at 15 — Guide

Can I Invest in Stocks at 15?

can i do stocks at 15 — short answer up front: minors, including 15‑year‑olds, generally cannot open a standard, individual brokerage account in their own name. However, a 15‑year‑old can own and invest in stocks through several legal pathways — custodial UGMA/UTMA accounts, teen‑owner programs offered by brokers, a custodial Roth IRA if they have earned income, education accounts (529), or parent‑supervised accounts and apps. Parental or guardian involvement is typically required. This is general information and not legal, tax, or financial advice.

This guide is written for teens and parents who want clear, practical steps on how to start investing at 15, the legal and tax basics to know, common account types and platforms, how to choose investments, and what to check before opening an account. Throughout, we keep the tone beginner‑friendly and neutral, and we highlight Bitget when referring to trading platforms and Bitget Wallet for Web3 custody where appropriate.

Overview of How Teens Can Access the Market

There are several common ways a 15‑year‑old can invest in stocks or stock‑like instruments:

• Custodial brokerage accounts (UGMA/UTMA): an adult opens and controls the account for the minor until the state age of majority, but the assets legally belong to the child.
• Custodial Roth IRA: if the teen has taxable earned income (from a job or self‑employment), they can contribute to a Roth IRA set up by an adult custodian, subject to contribution limits.
• Teen‑owned brokerage programs: some brokers offer teen accounts where the parent opens the account, but the teen can learn, trade (with parental controls), and build investing experience.
• Kid/teen investing apps: apps aimed at education let teens research, propose trades, and use debit features with parental approval.
• 529 plans and other education accounts: not direct stock ownership by the teen, but tax‑advantaged vehicles for education savings set up by an adult.

Parental or guardian involvement is typical for account opening, funding, and compliance with tax rules. Each route has different investment choices, tax implications, and control rules.

Legal & Regulatory Basics

Age of Majority and Account Eligibility

Most U.S. brokerages require the account owner to be 18 (in some states 21). That means a 15‑year‑old cannot open a standard individual brokerage account in their own name at most firms. Brokers offer custodial accounts or teen‑supervised accounts to accommodate minors. Always read the brokerage’s terms: age and eligibility rules vary by provider and by state.

Custodial Law (UGMA vs UTMA)

UGMA (Uniform Gifts to Minors Act) and UTMA (Uniform Transfers to Minors Act) are custodial account structures that let adults gift or transfer assets to a minor. Key points:

• Ownership: Assets in a UGMA/UTMA belong to the minor but are managed by a custodian (usually a parent or guardian) until the custodial termination age.
• Control: The custodian controls trading and distributions for the minor’s benefit.
• Age of termination: Varies by state — commonly 18 or 21, though some states allow later transfer ages (e.g., 25) under UTMA.
• Investment choices: UGMA/UTMA accounts typically allow stocks, ETFs, bonds, and mutual funds. Brokerage policies vary on product availability.

UGMA accounts are generally limited to financial assets; UTMA is broader and can include real property and other assets in some states.

“Kiddie Tax” and Tax Filing Rules

Unearned income (interest, dividends, capital gains) in a child’s account may be subject to special tax rules commonly called the “kiddie tax.” Briefly:

• Thresholds change annually; small amounts of unearned income may be taxed at the child’s rate, but above certain limits, unearned income may be taxed at the parent’s rate.
• Capital gains from selling investments in custodial accounts may generate taxable events the custodian must track and report.
• If a teen opens a Roth IRA and contributes earned income, that Roth grows tax‑advantaged; withdrawals and rules differ from taxable accounts.

Because tax thresholds and rates change over time, and because reporting requirements vary, consult the IRS guidance or a tax professional for specifics.

Common Account Types and Platforms

Custodial Brokerage Accounts (UGMA/UTMA)

Purpose: Long‑term savings and investing for a minor’s benefit (education, first car, future spending). An adult custodian opens and manages the account.

Who controls the account: The custodian manages investments and transactions; the child is the legal owner and gains full control at the state‑specified age of majority.

Allowable investments: Many custodial brokerage accounts allow stocks, ETFs, bonds, and mutual funds. Availability of options, margin, or derivatives is typically restricted.

Transfer at majority: When the child reaches the legal age set by state law, the custodian must transfer assets to the beneficiary’s control.

Pros and cons:

• Pros: Flexibility in investment choices, clear ownership for the child, good for long‑term savings.
• Cons: Custodial assets are the child’s property (impact on aid), potential tax implications, irreversible gifts once funded.

Custodial Roth IRA for Minors

Eligibility: The teen must have earned income (reported wages or net self‑employment income). Contributions cannot exceed the teen’s earned income or the annual IRA limit, whichever is lower.

Contribution limits: Subject to annual limits set by the IRS (for example, an annual max for IRAs). Keep records of earned income (pay stubs, 1099s) to substantiate contributions.

Benefits and rules:

• Roth IRAs grow tax‑free and qualified withdrawals (subject to rules) are tax‑free in retirement.
• Contributions (but not earnings) can be withdrawn penalty‑free in many cases, which can be a teaching tool for teens.
• Roths encourage long‑term compounding from an early age.

Caveat: A Roth requires earned income. Passive gifts, trust distributions, or 529 money do not qualify as earned income for IRA contributions unless the teen actually performed work and earned wages.

Teen‑Owned Brokerage Programs (example: Fidelity Youth)

How they work: A parent or guardian opens an account on behalf of the teen. The teen often gets log‑in access and can place trades, with parental oversight and certain controls.

Features: Educational materials, mobile access, parental notifications, and restrictions on certain products. Policies vary by provider.

Control and visibility: Even if the teen places trades, the adult custodian typically retains legal control and full account visibility.

Kid/Teen Investing Apps (example: Greenlight)

Purpose: Education and safe early exposure to investing and financial responsibility.

Typical features:

• Research tools and simplified trading interfaces for teens.
• Parental approvals for trades, spending controls, and debit card features.
• Built‑in lessons and goal tracking.

Limitations: Investment selection and functionality may be limited compared to full brokerages.

529 Plans and Education Accounts

Purpose: Tax‑advantaged savings for qualified education expenses.

Who sets them up: Usually an adult (parent, grandparent) sets up the account and names a beneficiary (the teen). Investments are selected by the account owner.

Notes: Funds are intended for qualified education costs; non‑qualified withdrawals may incur taxes and penalties. 529 plans are not direct stock accounts for the minor but are an important part of a teen’s financial picture.

How to Start — Practical Steps

1. Learn the basics: Understand stocks, bonds, ETFs, diversification, fees, and the difference between taxable accounts and tax‑advantaged accounts.
2. Set goals and risk tolerance: Short‑term (car, college) vs long‑term (retirement) goals affect investment choices.
3. Choose the right account type: Custodial UGMA/UTMA, custodial Roth IRA (if earned income), teen brokerage program, or a 529 plan.
4. Open the account with a parent or guardian: Read provider terms and state custodial laws.
5. Fund the account: Gifts, earned income (for Roth), or transfers from other accounts can fund investments.
6. Select investments: For many teens, diversified index funds or ETFs are the simplest core holdings; small single‑stock positions can be used for learning.
7. Track progress and learn: Review statements, discuss performance and mistakes, and use simulated accounts for practice.

Practical tips:

• Start small. Investing early is more about habit and learning than immediate large gains.
• Use educational resources from reputable providers and neutral sources.
• Keep records (especially earned income and gift details) for tax purposes.

Funding, Contributions, and Recordkeeping

Funding sources for teen accounts:

• Gifts: Adults can gift cash to custodial accounts; once gifted, funds belong to the minor.
• Earned income: For Roth IRA contributions, a teen must have documented earned income.
• Transfers: Parents or other custodians can transfer funds into custodial accounts.

Recordkeeping essentials:

• Keep pay stubs and 1099s to verify earned income for Roth contributions.
• Maintain gift records (date, amount, donor) — gifts are generally irrevocable in custodial accounts.
• Track cost basis and transaction history for tax reporting.

Why records matter:

• Tax reporting for kiddie tax and capital gains requires accurate records.
• Roth IRA contributions must be supported by earned income documentation.
• Custodial transfers to the beneficiary at majority can trigger planning conversations; clear records help.

Investment Choices & Risk Management for Teens

Recommended approach for most teens:

• Long‑term focus: Teens have a long time horizon, so a growth‑oriented allocation (higher stock allocation) often fits long goals.
• Diversification: Consider broad index funds or ETFs that provide exposure to the overall market.
• Small positions for learning: Use limited funds to study individual stocks, but keep most of the portfolio diversified.

What to avoid:

• High‑risk trading: Options, margin, and complex derivatives are inappropriate or restricted for minors and novice investors.
• Short‑term speculation: Frequent trading is costly and risky for beginners.

Practice tools:

• Paper trading/simulated accounts let teens learn without real money.
• Educational features in teen apps or brokerage learning centers help build skills.

Example allocation ideas (illustrative, not advice):

• Very long horizon (teen’s retirement accounts): 80–90% stocks, 10–20% bonds.
• Balanced learning portfolio: 60–80% broad equity ETFs, 20–40% fixed income or cash equivalents.

Taxes, Reporting, and Financial Aid Considerations

Tax reporting:

• Custodial accounts: Custodial unearned income may be taxable. The custodian is generally responsible for filing if needed.
• Roth IRAs: Contributions are made post‑tax (with earned income), qualified growth and distributions follow IRA rules.

FAFSA and financial aid impact:

• Custodial assets are typically treated as student assets and can reduce need‑based financial aid eligibility more than parental assets in some circumstances.
• 529 plan ownership and custodial assets have different treatment; consult FAFSA rules and a financial aid advisor.

When to consult professionals:

• Complex trust distributions, large custodial balances, questions about kiddie tax thresholds, or aid planning should involve a tax professional or financial planner.

Transitioning at Age of Majority

What happens at majority:

• Custodial accounts: At the state‑specified age, custodial assets must be transferred to the beneficiary, who gains full control.
• Teen‑owned brokerage programs: Transfer rules depend on provider — some convert to a full account in the young adult’s name with parental removal of controls.

Planning suggestions:

• Financial education: Prepare the teen with budgeting, investing basics, and record review before the handover.
• Handover checklist: Provide account statements, passwords, investment rationale, and tax records.
• Consider staged distributions or education on responsible use to preserve long‑term goals.

Platform & State Variations — What to Check Before Opening an Account

Before you open any account, check:

• Broker/app policies: Age limits, parental controls, fees, product availability, and trade restrictions.
• Custodial rules: Whether the provider uses UGMA or UTMA, and state age of majority for transfers.
• Investment choices: Are ETFs, index funds, or mutual funds available? Are there commissions or account minimums?
• Security and custody: For Web3 assets or crypto, prioritize reputable wallets and custody solutions; recommend Bitget Wallet for Web3 custody and Bitget as the exchange if you discuss exchange services.

Remember: platform features and state laws vary. Read terms and the custodian agreement carefully.

Common Questions (FAQ)

Q: Can I open my own brokerage account at 15? A: No—usually not. Most brokerages require the account owner to be 18 (or 21 in some states). Instead, use custodial UGMA/UTMA accounts, teen brokerage programs, or parent‑supervised apps.

Q: Can I have a Roth IRA at 15? A: Yes, if you have earned income and a custodian (adult) opens the Roth on your behalf. Contributions can’t exceed your earned income for the year or the IRS annual limit.

Q: Can I trade options or use margin? A: Most brokers block minors and custodial accounts from options trading and margin. These tools are generally restricted to adult accounts and experienced investors.

Q: Will investing affect college financial aid? A: Custodial assets are generally counted as the student’s assets and can reduce need‑based financial aid eligibility more than parental assets. FAFSA rules change periodically, so check current guidance.

Q: Can I invest in crypto at 15? A: Most crypto exchanges require account holders to be adults. For Web3 exposure, families can use custodial arrangements or adult‑supervised accounts. If discussing wallets, prefer Bitget Wallet for custody.

Best Practices & Educational Resources

Beginner best practices:

• Start small and learn consistently.
• Focus on diversified index funds or ETFs for a long‑term core portfolio.
• Keep most capital away from high‑risk speculative trades; use a small portion for learning with single stocks.
• Use simulated trading for practice.
• Keep careful records for taxes and Roth IRA eligibility.

Recommended learning resources:

• Broker education centers (search brokerage learning hubs)
• Investopedia articles for foundational topics
• Bankrate for practical saving and investment guides
• The Motley Fool for beginner‑friendly stock investing basics
• App‑based educational tools in teen investing platforms

Call to action: Explore Bitget’s educational center and Bitget Wallet to learn more about custody and trading features available for families and young investors.

See Also / Related Topics

• UGMA/UTMA custodial accounts
• Roth IRA for minors
• 529 college savings plans
• Brokerage account basics
• Teen financial education and budgeting

References & External Links

As of January 15, 2026, according to MarketWatch reporting and commentary on custodial investing and long‑term allocations, trustees and custodians tend to favor a high equity allocation for young beneficiaries and emphasize tax‑efficient instruments like ETFs. This MarketWatch coverage included practical allocation examples and trustee guidance. (As of 2026‑01‑15, MarketWatch.)

Sources used to build this article (search names for reference; no external links provided here):

• Fidelity — Guides such as “Can kids invest in stocks?” and Fidelity Youth FAQs
• Bankrate — “How to invest as a teenager” and related guides
• Greenlight — Guides for kids and teens investing
• Investopedia — “How to Open a Brokerage Account for Your Child” and “Stock Market for Teens”
• TIME Stamped — Coverage on opening accounts for minors
• The Motley Fool — “How to Start Investing as a Teenager”
• MarketWatch reporting referenced above (trust/portfolio management piece, Jan 2026)

Recommended official sources to consult for tax and retirement specifics: the IRS guidance on IRAs, publications on taxable income reporting, and your chosen broker’s custodian agreements.

Notes on coverage and limitations: This article is informational and not legal, tax, or investment advice. Rules, tax thresholds, and broker policies change over time. For personalized guidance about large custodial balances, trust distributions, tax filing, or financial aid impacts, consult a licensed tax professional, attorney, or financial advisor.

Further exploration: For families and teens ready to explore trading platforms and Web3 custody, review Bitget’s platform features and Bitget Wallet offerings to determine whether their teen‑friendly controls and custody solutions align with your family’s needs.