7 Best Custodial Accounts of August 2022
The best custodial accounts offer features that matter most to kid and adult account owners: low fees, investment education and strong customer support.
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Looking for a way to set your kid up with an investment account, but aren't sure where to start? Custodial accounts are a common way for adults to start an investment account for a child or grandchild, then hand the account off to them when they're legally an adult themselves. (Learn more about custodial accounts.) You may also see custodial accounts described as UGMA/UTMA accounts. This is based on the Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act — the legislature that allowed for the formation of these accounts.
To arrive at our list of the best custodial accounts, we looked at factors that matter most to both the adult who started the account, as well as the child who will eventually take control of it. These factors include how robust a broker's educational materials are, how strong its customer support is, and how low its fees are, among other criteria.
Looking for a way to set your kid up with an investment account, but aren't sure where to start? Custodial accounts are a common way for adults to start an investment account for a child or grandchild, then hand the account off to them when they're legally an adult themselves. (Learn more about custodial accounts.) You may also see custodial accounts described as UGMA/UTMA accounts. This is based on the Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act — the legislature that allowed for the formation of these accounts.
To arrive at our list of the best custodial accounts, we looked at factors that matter most to both the adult who started the account, as well as the child who will eventually take control of it. These factors include how robust a broker's educational materials are, how strong its customer support is, and how low its fees are, among other criteria.
Best Custodial Accounts
Broker | NerdWallet rating | Fees | Account minimum | Promotion | Learn more |
---|---|---|---|---|---|
![]() Merrill Edge Learn more on Merrill Edge's website | $0 per trade | $0 | Up to $600 when you invest in a new Merrill Edge® Self-Directed account. | Learn more on Merrill Edge's website | |
![]() TD Ameritrade Learn more on TD Ameritrade's website | $0 per trade | $0 | None no promotion available at this time | Learn more on TD Ameritrade's website | |
![]() Vanguard Learn more on Vanguard's website | $0 per trade | $0 | None no promotion available at this time | Learn more on Vanguard's website | |
![]() E*TRADE Learn more on E*TRADE's website | $0 per trade | $0 | Get up to $600 or more when you open and fund an E*TRADE account | Learn more on E*TRADE's website | |
![]() Ally Invest Learn more on Ally Invest's website | $0 per trade (on eligible US securities) | $0 | $100- in cash bonus with qualifying deposit. | Learn more on Ally Invest's website | |
![]() Charles Schwab | $0 per trade | $0 | None no promotion available at this time | Read review | |
![]() Fidelity® Youth Account | $0 | $0 | Get a $50 reward once your teen activates their Youth Account. | Read review |

on Merrill Edge's website
Merrill Edge

Fees
$0per trade
Account minimum
$0Promotion
Up to $600when you invest in a new Merrill Edge® Self-Directed account.
on Merrill Edge's website

on TD Ameritrade's website
TD Ameritrade

Fees
$0per trade
Account minimum
$0Promotion
Noneno promotion available at this time
on TD Ameritrade's website

on Vanguard's website
Vanguard

Fees
$0per trade
Account minimum
$0Promotion
Noneno promotion available at this time
on Vanguard's website

on E*TRADE's website
E*TRADE

Fees
$0per trade
Account minimum
$0Promotion
Get up to $600 or morewhen you open and fund an E*TRADE account
on E*TRADE's website

on Ally Invest's website
Ally Invest

Fees
$0per trade (on eligible US securities)
Account minimum
$0Promotion
$100-in cash bonus with qualifying deposit.
on Ally Invest's website
Fidelity® Youth Account

Fees
$0Account minimum
$0Promotion
Get a $50 rewardonce your teen activates their Youth Account.
Want to compare more options? Here are our other top picks:
More about best custodial accounts
The above star ratings give the custodial investing account provider's overall score across a range of categories. Below, you'll find additional details about how the providers are rated specifically for customer support, which includes factors such as customer service availability, broker-assisted trades, website usability and educational support. These are key factors for custodial accounts because the accounts are for minors, who likely are new to investing and may need support.
Merrill Edge
Customer support is a strength for Merrill Edge, it has 24/7 phone, chat, and email support. Appointments are available at Bank of America branches during business hours for those preferring face-to-face support.
The platform offers educational support via a library of videos, a podcast called "Merrill Perspectives," virtual client programs and events, tools and calculators for retirement, college planning, investing and personal finance, access to a library of content, and quarterly email updates.
Merrill Edge's customer support options: 4.5 out of 5 stars
TD Ameritrade
TD Ameritrade has expansive customer support. It offers a variety of mediums, including texting and social media, and support is accessible 24/7. For those needing in-person interaction, there are branches nationwide.
Customers of the TD Ameritrade custodial account can expect eight hours of educational webcasts every day, 150 live events at branches every year, three- and four-part series workshops (about 45 per year), a library of ideas, articles, courses, quizzes, coaching webcasts curated based on client needs, and dedicated content for new investors.
TD Ameritrade customer support options: 4.5 out of 5 stars
Vanguard
Customers will find lots of retirement planning tools and resources on Vanguard's website. They can learn about their investment options, how to prioritize their goals, use high-quality calculators and tools to forecast when is best to retire, estimate their retirement expenses, and explore the pros and cons of converting a traditional IRA to a Roth.
In addition, Vanguard shares educational information via its blog, news articles, social media, commentary, research papers and videos, as well as webcasts on investment products, retirement, industry news, financial planning and the economy. Both clients and non-clients can access this information.
Its customer support options include phone support 8 a.m.-8 p.m. Eastern time Monday-Friday, and email support.
Vanguard customer support options: 3.5 out of 5 stars
E*TRADE
E*TRADE offers customers phone, email and chat support 24/7. The platform also has some local branches for those who would like to pop in to talk to someone in person. As far as account fees are concerned, E*TRADE doesn’t charge an annual or inactivity fee.
In terms of educational resources, investors can explore live and on-demand webinars, online investing courses from Morningstar, webinars from Morgan Stanley, live webcasts, and a knowledge center blog.
E*TRADE customer support options: 4 out of 5 stars
Ally Invest
You can get help around the clock with Ally. The brokerage offers 24/7 support via phone, email and chat.
There are also a range of educational tools such as live webinars, learn content on its website, a weekly email campaign, quarterly digital conferences on YouTube, and a bi-weekly YouTube series.
Ally Invest customer support options: 4.5 out of 5 stars
Charles Schwab
Charles Schwab offers its customers solid support. Investors can expect access to phone, email and chat 24/7, and in-person support at branches 8 a.m. to 5 p.m. Monday-Friday, and some branches have Saturday hours. Charles Schwab holds learning events at branches, as well as trading events.
Investors can participate in thousands of educational workshops and webcasts, and Charles Schwab also has a knowledge center on its website.
Charles Schwab customer support options: 4.5 out of 5 stars
Fidelity Youth Account
Fidelity Youth Account investors can participate in live and on-demand webcasts, podcasts, workshops, coaching sessions, in-person meetings and investor seminars at branches, access the online learning center with articles, and watch informational videos and webinars on its website.
If account users need help, customer support is available via phone, email and live chat 24/7. There are local branches that offer support, too.
Fidelity Youth Account customer support options: 4.5 out of 5 stars
Last updated on August 1, 2022
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Methodology
NerdWallet’s comprehensive review process evaluates and ranks the largest U.S. brokers by assets under management, along with emerging industry players. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs. We adhere to strict guidelines for editorial integrity.
We collect data directly from providers through detailed questionnaires, and conduct first-hand testing and observation through provider demonstrations. The questionnaire answers, combined with demonstrations, interviews of personnel at the providers and our specialists’ hands-on research, fuel our proprietary assessment process that scores each provider’s performance across more than 20 factors. The final output produces star ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.
For more details about the categories considered when rating brokers and our process, read our full methodology.
To recap our selections...