- Brokerage-style investment account for teens 13-17
- No monthly fees or trading commissions
- Teens can use debit cards and spend from the same account
- Parents maintain visibility and can lock account if needed
The account must be opened by a parent or guardian on behalf of their teen. Parents must have their own Fidelity account, but if they don’t, they can open a new account together for themselves and their teen.
What is Fidelity Youth Account?
Nishtha Youth Account is a teen-owned brokerage account offered by Fidelity Investments. With decades of experience in investing, retirement planning and self-directed brokerage services, Fidelity is one of the largest and most well-established financial institutions in America.
Unlike traditional custodial accounts, the teen is the actual account owner. This is a major difference. The goal is to provide teens with practical experience in managing money and investments, while also allowing parents to keep track of their activity.
What does it offer?
The Fidelity Youth Account connects investing, saving and spending into a single platform. Here’s a closer look at its key features:
Teen-Owned Brokerage Account
The Youth Fidelity Account is not a custodial account where parents control everything. It is owned by teens, meaning they can make their own investment decisions, trade, and manage their portfolios. That said, you can still view and monitor activity on the account. You can close the account and/or cancel the debit card at any time.
eligible securities
Your teen won’t have access to every investment in the future, so you don’t have to worry about them making speculative trades on cryptocurrency or forex. They cannot trade on options or margin or short selling, or invest in a company’s IPO, but they can access the following securities:
spending privilege
The spending privileges of the Fidelity Youth Account make it feel like a hybrid brokerage/spending account. Your teen can order a debit card that is linked to the account, allowing them to spend money from the account. Therefore, they can deposit funds in a single account, invest some of the money and use the rest for everyday expenses.
parental controls
As mentioned, this is not a joint account or a custodial account. As a parent, you do not own the account, and you cannot control trading. But you can view account balances and transactions, monitor investment activity, and access alerts and other monitoring features. So, your teen is making decisions, but you’re still making decisions.
Are there any fees?
Nishtha Youth Account There are no monthly maintenance fees, and no account minimum limits. There are also no trading fees for US stocks and ETFs, which is in line with most brokerages these days. Just remember that the underlying investments, such as mutual funds and ETFs, will have their own management expense ratios (MERs).
How does the Fidelity Youth Account compare?
before you open Nishtha Youth Account With your teen, you might want to consider some options. Acorns Early and Greenlight lean more toward financial education and basic money management. They focus more on younger children and focus on saving, budgeting and very simple investing concepts through automated portfolios. They do not provide a true brokerage experience like Fidelity.
If your goal is to teach a young child basic money habits, those platforms may be a better fit. But if you have a teen who is ready to learn more about how the markets work, Fidelity is an excellent choice.
How do I open an account?
If you are an existing Fidelity account holder, you can open a Fidelity Youth Account for your teen. If you don’t have a Fidelity account yet, you can open both accounts at the same time. Once you’ve set up an account, provided your consent, and linked the account to supervision, your teen will be able to set up their own login credentials and access the account.
Like any investment account, you’ll need to provide some personal information for both yourself and your teen, but the process can be completed entirely online. Once the account is approved, your teen can deposit funds and start trading immediately.
Is it safe to use?
Yes, it is safe to use the Fidelity Youth Account. As an established US brokerage, Fidelity uses industry-standard encryption, fraud monitoring and account security features. Your teen’s account is also covered by SIPC insurance, which protects against brokerage bankruptcy (not market losses). Built-in restrictions on high-risk investments such as crypto, forex, options and trading on margin add an additional layer of protection by helping to limit the potential for significant losses.
How do I contact Fidelity?
If you need assistance, you can contact Fidelity 24/7 by telephone at (800) 343-3548 or via live online chat during the following business hours:
- Mon-Fri, 8 am to 10 pm
- Sat-Sun, 9am-4pm ET
Is it worth it?
I think the Fidelity Youth Account is a great way for teens to get an early start on investing within a controlled system. If you have a young child, something like Acorns Early or Greenlight might be a better starting point, as long as you’re comfortable with the monthly fee. But if your teen is ready to take a more active role with their savings and investments, the Fidelity Youth Account is closer to your real brokerage experience.
