Brokerage firm Fidelity Investments Inc. will allow American teens to trade stocks without account fees or commissions as part of a new service, the WSJ reported.
- The new service will be available from teens aged 13 to 17, whose parents or guardians are existing Fidelity account holders.
- The offering includes debit cards, and investing and savings accounts with deposits capped at $30,000 annually.
- The accounts will allow the account holders to buy and sell U.S. stocks, mutual funds, and exchange-traded funds, but trading options or borrowing on margin are prohibited.
- The contract will be between the parent and Fidelity, and the account is fully transferred to the teenager upon opening.
- Parents will have the right to close the account at any time. They also have the option to sign up for alerts on transactions made by the teen.
- Fidelity is banking on 27 million teenagets in the United States and several million households who already have a Fidelity account to avail of the offer.