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 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

Support

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

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:

  • Fidelity Government Money Market Fund (SPAXX), a taxable money market 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.4
  • Fidelity Treasury Fund (FZFXX), a taxable money market mutual fund investing in U.S. Treasury securities and related repurchase agreements. Intended for investors seeking as high a level of current income as is consistent with the preservation of capital and liquidity.4