(Bloomberg) -- Fidelity Investments is giving teenagers access to financial markets with a new type of brokerage account.
The fund manager will provide investing and savings accounts and debit cards to 13- to 17-year-olds whose parents are clients, Boston-based Fidelity said Tuesday in an emailed statement. They will be able to trade U.S.-listed stocks, Fidelity mutual funds and most exchange-traded funds, with no account fees or commissions.
“Fidelity is committed to responsibly supporting young investors,” said Jennifer Samalis, senior vice president of acquisition and loyalty at Fidelity. “Our goal for the Fidelity Youth Account is to encourage young Americans to learn through action and foster meaningful family conversations around financial topics.”
A wave of young retail investors in the U.S. are exploring trading for the first time, galvanized by social media and the stock market’s sharp rebound from its pandemic lows in 2020. A rush of retail trading buoyed Fidelity and other brokerages, including Robinhood Markets, which popularized commission-free trading. Major brokerages including Charles Schwab Corp. and Fidelity followed suit, eliminating commissions in late 2019.
The new generation of investors has seized on the free-trading frenzy. At Fidelity, investors 35 years or younger opened 1.6 million retail accounts in the first quarter, more than triple the number from a year earlier, according to a report.
Fidelity is now offering an even earlier entry point, although its accounts for minors will allow parents to monitor their investing activities. When a customer turns 18, the account will switch to a standard brokerage format.