Fidelity Investments is launching a no-fee trading and saving accounts for 13- to 17-year old teens. The firm, which says it is the first in the industry to do so, aims to “educate and support the next generation of investors” with its Fidelity Youth Account, which have no investment minimums.
The accounts can be opened by teens whose parents have Fidelity accounts, and parents can monitor their teen’s account activity. Like the firm’s accounts for adults, there are no account fees or commissions for online trading.
In the accounts, teens can buy or sell most publicly traded securities and fractional shares, according to Fidelity. In addition, they can buy shares of Fidelity mutual funds, municipal bond funds, and money market mutual funds.
“Designed alongside teens and parents, the account is charting a new course by providing the ability for teens to build healthy money habits through learning by doing,” said Jennifer Samalis, senior vice president of acquisition and loyalty at Fidelity Investments, in a statement.
Teens cannot purchase non-Fidelity mutual funds, corporate bonds, municipal fixed income securities, certificates of deposit and Treasuries.