Best Custodial Accounts for 2025
Review
Updated
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Ask anyone who has children what's most important to them, and depending on their phase of life, they'll likely say it's their children or grandchildren. For parents and grandparents, setting up a custodial account is about taking care of the people they love, making which brokerage they work with even more important. Here, we share our five favorite custodial accounts
| Broker/Advisor | Best For | Commissions | Learn More | |
|---|---|---|---|---|
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Best For:
Simplified mobile app investing |
Commission:
$3-$12 monthly |
Learn More for Acorns
On Acorns' Secure Website. |
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Best For:
Diversified investing needs |
Commission:
$0 commission for online U.S. stock and ETF trades. No fees to buy fractional shares. |
|
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Best For:
Simple trading needs |
Commission:
$0 stock and ETF trades |
|
 2025 Award Winner
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Best For:
Low cost index investing |
Commission:
$0 online; $25 broker-assisted fee for some phone trades of stocks and ETFs from other companies (Less than $1 million) |
Learn More for Vanguard
On Vanguard's Secure Website. |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Best For:
Broker versatility |
Commission:
$0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares. |
On Acorns' Secure Website.
The simple, modern approach to investing helps people invest faster. Its fee structure is easy to understand, making it a good fit for hands-off investors who want to participate in the market but put their investments on cruise control.
$3-$12 monthly
$0
On Acorns' Secure Website.
Why Acorns made the list: Acorns started as a way for people to passively invest spare change by rounding up purchases but has evolved into a full-featured investment app offering several account types, including custodial accounts. With a flat monthly fee for its services, customers know what they can expect.
A clear top-pick stock broker, particularly for mutual fund investors wanting to buy Fidelity mutual funds with no commissions. Importantly, Fidelity also offers $0 stock, ETF trades, and a high-quality mobile app for beginners and seasoned investors.
$0 commission for online U.S. stock and ETF trades. No fees to buy fractional shares.
$0, ($1 minimum per fractional share transaction)
Why Fidelity made the list: Fidelity is one of the largest and oldest brokers in the U.S. and offers a user-friendly investment platform as well as the tools and resources you'd expect from such a large industry leader. With an excellent robo-advisor platform, the ability to buy fractional shares of stocks and ETFs, and more, it can be a great place to start a custodial account.
Ally Invest offers an easy-to-use trading platform, a solid selection of commission-free ETFs, and the potential for substantial bonus cash for opening an account.
$0 stock and ETF trades
$0
Why Ally Invest made the list: Ally Financial is best known for its online banking services and auto lending, but it also has a rock-solid investment platform that is easy to navigate. It's one of the few app-focused brokerages that offers custodial accounts, and it can be a solid choice whether you want to invest in individual stocks, ETFs, mutual funds, or Ally Invest's robo-advisor platform.
On Vanguard's Secure Website.
2025 Award Winner
Vanguard remains a top option for passive investors with excellent zero-commission options for index funds and ETFs.
$0 online; $25 broker-assisted fee for some phone trades of stocks and ETFs from other companies (Less than $1 million)
$0
On Vanguard's Secure Website.
Why Vanguard made the list: Vanguard may not be the most high-tech brokerage, and there are features we wish were available (such as the ability to buy fractional shares). Where Vanguard truly shines, however, is index fund investing -- particularly with its excellent mutual funds, which are available commission-free.
Charles Schwab pioneered the low-cost brokerage model decades ago, and that legacy continues with its no-commission-fee offerings. The robust lineup of account types, investment vehicles, and a high-quality app round out the stacked feature set.
$0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares.
$0
Why Charles Schwab made the list: Charles Schwab is one of the largest online brokerage firms in the world. It offers many different account types (including custodial), many different investment types, and several different investment platforms for all skill levels. It earns top marks for its excellent customer service and for its wide variety of investing resources and tools.
TD Ameritrade has been acquired by Charles Schwab, and the company expects all accounts to be transitioned by the end of 2024. We've removed TD Ameritrade from our best-of lists to align with this development. Here at Motley Fool Money, you can trust that we're constantly evaluating our top broker picks to bring you current recommendations.
Choosing the right custodial account is a matter of knowing what you're looking for.
Here are the basic steps required to open a custodial account.
Let's say you want to own a share of a specific company, but the share price is too expensive. Fortunately, some brokerages let you buy a portion of a single stock. If you can picture a share of stock as a pizza, a fractional share would be one slice of the pizza. As with a whole share, a fractional share rises or drops in value based on how well the company does.
Once you've chosen a broker and set up an account, purchasing a fractional share is easy. It all begins with research.
As with any investment, research is critical. Many of the best brokerage firms provide research reports on each company whose stock they sell. Those ready-made reports can simplify your research. If your broker doesn't offer research reports, you should still be able to research the following:
Whether you can buy fractional shares of stock and which fractional shares are available totally depends on the brokerage. Some brokerages don't offer fractional shares, while others offer a menu of specific companies from which to choose. For example, one broker may offer fractional shares from 200 companies while another offers shares from 400 different companies.
If you're particularly interested in buying fractional shares of a specific stock, you'll want to find out which brokerages offer that stock before opening a custodial account.
No two brokers are precisely alike, and how much money you need to open a brokerage account and purchase fractional shares will vary by broker. That's one of the things that makes choosing the right broker for you so important. If you know that you're interested in making fractional shares a part of your portfolio, ensure any broker you're looking at sells them.
Further, take a look at the broker's list of available companies. As mentioned, some offer far more than others, and some brokerages don't deal with fractional shares at all.
As you decide which brokerage firm to work with, consider minimum deposits and fees. The best brokerage for you should be one you can afford.
The custodian has access to the funds and the right to make withdrawals at any time, as long as the withdrawals are for the child's benefit. Although the custodian controls how the money is invested and spent, it legally belongs to the child.
Once the child reaches a specific age (typically between 18 and 25, depending on the state), the assets in the account are transferred to them. In the meantime, the custodian can't take it out of the assigned child's name.
"Custodial account" is a somewhat broad term that typically refers to an account at a financial institution set up for a minor but controlled by an adult. Approval from the account's custodian would be required before using money in a custodial account to buy a specific stock investment.
Here are a few defining characteristics of custodial accounts:
Custodial accounts can be opened with most major brokerages and used to invest in stocks, mutual funds, or ETFs.
At Motley Fool Money, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and user experience; however, we also take into account features like research, education, tax-loss harvesting, and customer service. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.
See our full methodology here: Ratings Methodology
Brokerages we evaluated for consideration on this page: Acorns, Ally Invest, Axos Self-Directed Trading, Betterment, Cash App Investing, Charles Schwab, Delphia, Domain Money, Ellevest, Empower, eToro Brokerage, E*TRADE Core Portfolios from Morgan Stanley, E*TRADE from Morgan Stanley, Fidelity, Fidelity Cash Management, Fidelity Go®, Firstrade, FOREX.com, Interactive Brokers, J.P. Morgan Self-Directed Investing, M1 Finance, Magnifi, Marcus Invest, Merrill Edge® Self-Directed, Moomoo, NinjaTrader, Personal Capital, Plynk, Prosperi Academy, Public, Robinhood, Rocket Dollar, Schwab Intelligent Portfolios, SoFi Active Investing, SoFi Robo Investing, Stash, Stockpile, tastytrade, Titan, Tornado App, TradeStation, Tradier, Vanguard, Vanguard Digital Advisor®, Wealthfront, Webull, Zacks Trade.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page.
Vanguard disclosures
Visit vanguard.com to obtain a prospectus or, if available, a summary prospectus, for Vanguard and non-Vanguard funds offered through Vanguard Brokerage Services. The prospectus contains investment objectives, risks, charges, expenses, and other information; read and consider carefully before investing.
Commission-free trading of Vanguard ETFs applies to trades placed both online and by phone. All ETFs are subject to management fees and expenses; refer to each ETF's prospectus for more information. Account service fees may also apply. All ETF sales are subject to a securities transaction fee. See the Vanguard Brokerage Services commission and fee schedules for full details.
Vanguard funds not held in a brokerage account are held by The Vanguard Group, Inc., and are not protected by SIPC. Brokerage assets are held by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation, member FINRA and SIPC.
Vanguard Marketing Corporation, Distributor of the Vanguard Funds
Fidelity disclosure
Fractional share quantities can be entered out to 3 decimal places (.001) as long as the value of the order is at least $1.00. Dollar-based trades can be entered out to 2 decimal places (e.g. $250.00)
