Invest on behalf of a minor with a custodial account (also known as an UGMA or UTMA account, based on the Uniform Gifts/Transfers to Minors Acts). A custodial account at Fidelity is a brokerage account with comprehensive trading, mutual fund, and cash management features. Funds in a custodial account are irrevocable gifts and may only be used for the benefit of the minor.
Custodial account features
No annual account fees, no trading fees for most Fidelity mutual funds, and online stock commissions on U.S. equity purchases are only $7.95,1 lower than Schwab, TD Ameritrade, and E*Trade2
|Wide range of investment offerings||
Stocks, bonds, and options, more than 5,000 Fidelity and non-Fidelity mutual funds, index and exchange-traded funds, among other offerings
Access to knowledgeable representatives
|Powerful research and tools||
Free independent research from more than 20 providers
Advanced trading platform and tools for Active Traders3
|Ease of use||
Online access to the account so you can move money into the account
Only $2,500 minimum investment required
Many easy ways to deposit money in the account, including transferring funds from a bank or another financial institution, using direct deposit, or check
Uninvested cash in your account is held in what is known as a core position. Think of your core position as a place where money is held before you invest it or distribute it from your account. For a custodial account, you may choose among many core positions:
You could lose money by investing in a money market fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Fidelity Investments and its affiliates, the fund’s sponsor, have no legal obligation to provide financial support to money market funds and you should not expect that the sponsor will provide financial support to the fund at any time.
Fidelity’s government and U.S. Treasury money market funds will not impose a fee upon the sale of your shares, nor temporarily suspend your ability to sell shares if the fund's weekly liquid assets fall below 30% of its total assets because of market conditions or other factors.