Best Custodial Accounts
A custodial account is a savings or investment account an adult opens and administrates on behalf of a minor. The best custodial accounts offer features that matter most to both child and adult account owners: low fees, investment education and strong customer support.
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A custodial account is a common way for adults to start an investment account for a child, whether their own child, a grandchild or another minor. With custodial accounts, the adult — also known as the account custodian — manages and maintains ownership of the account until the child reaches the age of majority, which varies by state. At that point, the child is generally able to take control of the account and funds, though in some cases the adult may be able to continue to apply restrictions.
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 custodial accounts.
Not all brokers offer custodial 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 the range of accounts offered and how robust a broker's educational materials are.
Best Custodial Accounts
| Broker | NerdWallet rating | Fees | Account minimum | Promotion | Learn more |
|---|---|---|---|---|---|
4.8/5 | $0 per online equity trade | $0 | None no promotion available at this time | Learn moreon partner's site on Charles Schwab's website | |
5.0/5 | $0 per trade | $0 | None no promotion available at this time | Learn moreon partner's site on Interactive Brokers' website | |
4.4/5 | $0 per trade | $0 | None no promotion available at this time | Learn moreon partner's site on Vanguard's website | |
4.6/5 Reviewed in: Oct. 2024Period considered: Aug. - Oct. 2024 | $3 -
$12 per month | $0 | $10 sign -
up bonus | Learn moreon partner's site on Acorns' website AD Paid non-client promotion | |
4.3/5 | $0 per trade. Other fees apply. | $0 | Get up to $1,000 when you open and fund an E*TRADE brokerage account. Terms apply. | Learn moreon partner's site on E*TRADE's website |
Fees
$0
per online equity trade
Account minimum
$0
Promotion
None
no promotion available at this time
Our Take
Commission-free stock, options and ETF trades.
Five trading platforms with no minimums or fees.
Access to thinkorswim platforms.
Extensive research offerings.
Large fund selection.
Low interest rate on uninvested cash.
Charles Schwab has earned its strong reputation: The broker offers high-quality customer service, four free trading platforms, a wide selection of no-transaction-fee mutual funds and $0 commissions for stocks, ETFs and options.
Fees
$0
per trade
Account minimum
$0
Promotion
None
no promotion available at this time
Our Take
Commission-free stock, options and ETF trades.
Large investment selection.
Strong research and tools.
Huge selection of no-transaction-fee mutual funds.
High order execution quality.
High minimum to earn interest on uninvested cash.
Website can be difficult to navigate for beginner investors.
Don't let the name fool you: IBKR Lite offers commission-free stock trading (including international trade capabilities), more than 19,000 mutual funds, and a well-featured platform.
Fees
$0
per trade
Account minimum
$0
Promotion
None
no promotion available at this time
Our Take
Commission-free stock, options and ETF trades.
Leader in low-cost mutual, index and exchange-traded funds.
High interest rate on uninvested cash.
High order execution quality.
Basic trading platform only.
Limited research and data.
No fractional shares for stocks.
Vanguard is the king of low-cost investing, making it ideal for buy-and-hold and retirement investors. It offers a top-notch selection of proprietary, low-cost mutual funds, including many ESG options. Despite its $0 trade commission, active traders will find the broker falls short due to the lack of a strong trading platform.
Fees
$3 - $12
per month
Account minimum
$0
Promotion
$10 sign-up bonus
Our Take
Automatically invests spare change.
Cash back at select retailers.
Educational content available.
No account minimum ($5 required to start investing).
IRA match at some service tiers.
High interest rate on checking and savings at some service tiers.
Monthly fees can be significant for small balances.
$35 per ETF to transfer funds to another broker.
No tax-loss harvesting.
Acorns is known for its automatic roundups that make saving and investing easy. The downside? At small account balances, Acorns' fees can cut into investment returns. Acorns has great tools for kids at the most expensive tier, such as a bank account and debit card designed to help them learn about all things money. But Acorns has zero financial advisor access or tax tools and higher than average transfer fees.
Fees
$3 or $9
per month, depending on selected plan
Account minimum
$0
Promotion
Get $25
when you open a personal brokerage account and deposit at least $5. Subject to T&Cs.
Our Take
Both DIY and automated investing options.
Fractional shares available.
Values-based investment offerings.
No account minimum ($5 required to start investing through Smart Portfolios).
Option to round-up purchases and invest the change.
Smart Portfolios don't offer tax-loss harvesting.
No automated IRA management.
Monthly fees can be significant for small balances.
Stash offers both DIY and automated investing, meaning it's a good option if you're looking for more customization. Keep in mind that only a standard brokerage account can be managed automatically. If you want an IRA managed as a robo-advisor, you'll need to look elsewhere. Stash also has no tax strategy or human advisor access.
Want to compare more options? Here are our other top picks:
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Last updated on July 15, 2025
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