Are you an under 18 who is worried about the future and ambitious enough to start planning for expenses you may need to incur to fulfill your goals or a guardian looking for ways to give more responsibility and learning to your ward? In either case, we assure you are in the right place to learn more about how to invest in stocks under 18 and get all your questions answered as we have prepared an exclusive article on the topic of how to invest in stocks under 18 to give special focus to the future of the United States of America and its under 18 population who are looking to become financially stable and self-independent from an early age.
For any teenager, the period below the age of 18 is a very crucial and important juncture in life when he or she has to focus on education, growing needs, peer pressure, and understanding their ambitions in life. With multiple things to plan and focus financing the needs becomes the crux of all the problems an under 18 may go through, from buying your first bike to taking admission in a reputed college one needs money for funding their goals, and hence it is of paramount importance that one starts early.
As an under 18 you might be earning and saving through part-time jobs, freelancing, and pocket money received from your parents but that might not be enough to pay for your requirements and hence you need to also start looking to grow your saved money at a rate of interest more than what bank deposits provide.
One of the best ways to grow your saved money at a higher possible rate of interest is the stocks market and I know at this moment a lot of questions might be filling your mind about how to invest in stock as an under 18, but you need not fear as we discuss and help you come in terms of investing in the stocks market.
How to Invest in Stocks Markets: Key Queries Resolved
The Matter of Legality: Many ponder whether investing in the stock market is illegal below the age of 18. Well, to clear your mind it is legal but the only barrier you need to cross is opening a brokerage account as below 18 years of age the law of the United States of America doesn’t allow you to open a Demat account in your name only and hence have to open a custodial account or joint brokerage account with your parents aggreging to act as a mentor or convener.
Best the apps to Invest in stocks by an Under 18
- Robin Hood
- com
- com
- Greenlight
- Ally Invest
- Stockpile
- Elite trade
- Fidelity
Many apprehend about the required age limit to start stock trading, to help you out regarding it a teenager can invest in stocks at any age, however below the age of 18, one must open his/her brokerage account as a custodial account or joint brokerage account with parents or any other adult relatives.
Since as a teenager one is new to the world of the stocks market we recommend you discuss all the aspects with your parents before proceeding further.
Why Should Look to Invest in Stock Market?
Many might think stock market trading and investment to be a full-time job done by investment bankers and traders, but it is not so. Proper research and analysis and some knowledge of basic finance can enable one to able to invest in the stock market.
It is not only about earning returns from your invested money, but it also helps a teenage boy/girl learn a number of important skills like money management, growing money for a long-term plan and the experience gained are helpful in the future.
List of Best Stocks for Under 18
Now we would like to provide you with the list of the best 5 stocks one can look to buy as a teenager to get guaranteed returns. The stocks have been selected based on past performances, stability of the business model, and financial stability in their balance sheet.
- Alphabet (Google Class A stock)
- Amazon
- Coca Cola
- Apple
- McDonald’s
One of the most basic questions in the mind of most teenagers is how I should invest in the stock market; how I open a brokerage account.
Well to reduce your worries regarding the ways to invest there are many apps and platforms which allow you to open a custodial account or joint brokerage account with your parents in order to invest or trade in stock markets.
Final Words
Kudos!!! You have completed lesson 101 on investing in the stock market, don’t wait any more open a brokerage account and start analyzing the stock market to create the best portfolio which funds your future.
Tags: InvestmentStock MarketStocks Under 18