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Custodial Account

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

Low-cost investing

No annual account fees, no trading fees for most Fidelity mutual funds, and online stock commissions on U.S. equity trades 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
Support

Access to knowledgeable representatives
Powerful research and tools

Free independent research from more than 20 providers

Advanced trading platform and tools for Active Traders
Ease of use

Online access to the account so you can move money into the account and use our free Fidelity BillPay® service

Only $2,500 minimum investment required3

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

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:

  • FCASH, an interest-bearing cash account, is the default core position, where your money is held unless you specify otherwise. You should use this account for cash you’re getting ready to reinvest; it is not intended solely for the purpose of earning interest. If you don’t intend to invest right away, then consider investment alternatives designed for your investment time frame for that money.
  • Fidelity Government Money Market Fund (SPAXX), a taxable mutual fund investing in U.S. Government Agency and Treasury debt, and related repurchase/reverse repurchase agreements. Intended for investors seeking as high a level of current income as is consistent with the preservation of capital and liquidity.
  • Fidelity Municipal Money Market Fund (FTEXX), a national municipal mutual fund. Intended for investors seeking income free from federal income tax.
  • Fidelity Tax-Free Money Market Fund (FMOXX), a national municipal mutual fund. Intended for investors who seek as high a level of current income, free from federal income taxes, as is consistent with liquidity and stability of principal. Normally does not invest in municipal securities subject to the alternative minimum tax.
  • Fidelity state municipal money market funds. Intended for residents of Arizona (FSAXX), California (FCFXX), Connecticut (FCMXX), Massachusetts (FDMXX), Michigan (FMIXX), New Jersey (FNJXX), New York (FNYXX), Ohio (FOMXX), or Pennsylvania (FPTXX) who are seeking as high a level of current income exempt from federal income tax and state personal income tax as is consistent with preservation of capital.
Focus is on tooltip

core position

where your money is held until you invest it or distribute it from your account; money in your core position is used for buying and selling securities and to process checks, electronic funds transfers (EFTs), cash transactions, wire transfers, deposits, authorized credit card transactions, and Fidelity BillPay®, if available on your account

View Trading Commissions and Margin Rates.

Questions?

Investment in a money market mutual fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although a money market mutual fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market mutual fund.
1. $7.95 commission applies to online U.S. equity trades for Fidelity Brokerage Services LLC retail clients; other conditions may apply. See the brokerage commission and fee schedule (PDF) for details.
2. Commission comparison based upon published website commission schedules, as of 2/1/2013, for E*Trade, Schwab, and TD Ameritrade for online U.S. equity trades. For E*Trade: $9.99 per trade for 0-149, $7.99 per trade for 150 to 1,499 and $6.99 per trade for 1,500 or more trades per quarter. For Schwab: $8.95 for up to 999,999 shares per trade, though orders of 10,000 or more shares or greater than $500,000 may be eligible for special pricing. For TD Ameritrade: $9.99 per market or limit order trade for an unlimited amount of shares.
3. Funds transferred into the account are irrevocable gifts to the minor and can be used only for the benefit of the minor.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information.  Read it carefully.
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