By Isoken Osagie
Fidelity Investments launched a commission-free brokerage account for 13- to 17-year-olds on Tuesday.
According to Reuters, the accounts would allow teenagers to trade stocks on a mobile app as well as save and make use of a debit card. Teens will be able to purchase and sell domestic stocks — fractional shares will also be available.
Additionally, the accounts have access to exchange-traded funds and Fidelity mutual funds.
Fidelity's Youth Account is reportedly the first brokerage account designed exclusively for teenagers, according to the company.
"Importantly, our goal for the Fidelity Youth Account is to encourage young Americans to learn through action and foster meaningful family conversations around financial topics," said Fidelity's senior vice president of acquisition and loyalty, Jennifer Samalis.
Parents or guardians will be able to monitor the accounts and teens would have access to Fidelity's educational tools.
Once the minor turns 18, the account will transition to a standard brokerage account.
Fidelity's new youth accounts were first tested by children of Fidelity employees in a voluntary pilot program that started in 2020.