Notice how the design of the portfolio page - where your kid can see the stocks he or she owns and how much of them they own - is colorful, vibrant and uncluttered. Here’s a screenshot of a sample portfolio. Well, the kid-friendly design aesthetic carries through to the portfolio management side of Stockpile. We mentioned how visually engaging the Stockpile homepage is. So the idea of owning fractional shares puts saving and investing that much more in the reach of kids! Kid-friendly design You don’t have to have $1,000 to get in the game. Simply put, this means that if one share of a stock of, say, Alphabet (aka Google) trades for somewhere north of $1,000, you can buy just $10 of it and own 0.01 shares. One of the unique things about Stockpile’s business model is that you can buy what are called “fractional shares.” But more on that in a moment…įor now, let’s get back to the “how little you buy of a stock” part because that’s particularly key here. There is, however, one additional fee if you choose to buy a Stockpile gift card. There are no other additional fees when doing this online. It’s not a big deal it’s just something to be aware of going into this! Big pluses: Low fees and fractional sharesĮvery time you buy or sell a stock, you only pay 99 cents to execute that transaction - regardless of how much or how little you buy of a stock. That’s a big part of how Stockpile keeps its fees so low.īut here’s something to know: Because of batch execution, the price you buy at may be slightly different than you expect when you’re placing the order the day before. Whatever orders you place will be “batch executed,” meaning they’re grouped together with others and go through at the next day’s market open. When the trading account gets activated, you can buy and sell stock any time you want. As part of the registration process, you link a bank account and transfer funds. Setting up a Stockpile account works like pretty much anything else. The company offers more than 1,000 individual stocks and exchange-traded funds, the latter of which are like ultra-low cost groups of many different company stocks bundled together. When you visit the Stockpile website, one of the first things you’ll notice is how clean and visually engaging the site is. You can actually buy gift cards for stock at retail stores!.99-cent trades for buying or selling any security or ETF.Stockpile is a online discount brokerage firm that makes it easy and engaging for kids to manage their own portfolios. OK, now we’re down to the nitty-gritty! If you really want the kids to have the best chances of remaining engaged in investing after the initial thrill of your gift wears off, you might want to try Stockpile Inc. When the child turns 18, the assets can be transferred from the custodial account to a regular individual brokerage account. The securities (stocks) held in the account are owned by the child, but the adult has legal responsibility over the account. What this means is that you as the mom, dad, grandparent, aunt, uncle or other adult opens the account. The thing to do would be to open a custodial account for the child or children in question. So then we arrive at the original poster’s first thought, which was to set up some kind of online trading account. And since most kids who are 5 and 3 don’t have earned income - unless they’re really industrious! - that’s probably out of the question. Well, right off the bat, you must have earned income to contribute to a Roth IRA. What’s the best way to do this for them and minimize costs?” ![]() What’s the best way to do this? Should/can I set up an online trading account in their names? Would it be better to set up a self-directed Roth IRA from which to buy stock? “As the holidays approach, I want to buy stock for my niece (5) and nephew (3). One reader named Jimmy wrote in to Ask Clark with the following question: RELATED: 8 ways to start investing when you only have $100 or less Buying stock for kids: The gift that keeps giving! With the holidays upon us, we’re getting a lot of questions from folks who want to know how to give stock as a gift to young children.
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