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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New Year's resolutions aren't just for grownups: If you want to help your kid accumulate some wealth in 2025, a custodial account is the way.
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 a custodial account, 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 you 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.
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 moreLearn more on Charles Schwab's website | |
5.0/5 | $0 per trade | $0 | None no promotion available at this time | Learn moreLearn more on Interactive Brokers' website | |
4.3/5 | $0 per trade. Other fees apply. | $0 | Get up to $1,000 when you open and fund an E*TRADE account | Learn moreLearn more on E*TRADE's website | |
4.4/5 | $0 per trade | $0 | None no promotion available at this time | Learn moreLearn more 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 moreLearn more on Acorns' website AD Paid non-client promotion |
Fees
$0
per online equity trade
Account minimum
$0
Promotion
None
no promotion available at this time
Fees
$0
per trade
Account minimum
$0
Promotion
None
no promotion available at this time
Fees
$0
per trade
Account minimum
$0
Promotion
None
no promotion available at this time
Fees
$3 - $12
per month
Account minimum
$0
Promotion
$10 sign-up bonus
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.
Want to compare more options? Here are our other top picks:
Last updated on January 3, 2025
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).
For more details about the categories considered when rating brokers and our process, read our full methodology.