NEW YORK (AP) — Looking to draw in the next generation of investors, Fidelity Investments is launching a new type of account for teenagers to save, spend and invest their money.
The account is for 13- to 17-year-olds, and it will allow them to deposit cash, have a debit card and trade stocks and funds. The teens can make their own trades through a simplified experience on Fidelity’s mobile app, with zero account fees or minimum balances, though the youth account requires a parent or guardian to have their own Fidelity account as well.
It’s the latest step in a broad push by the industry to draw more first-time investors into the market. Over the years, brokerages have slashed trading commissions to zero and offered easy-to-use apps in hopes of boosting the percentage of U.S. households that are in the stock market, which has climbed back above half. Holding stocks is one of the best ways to build wealth over the long term, but with that also comes risk.