Can a 16 trade online ?
January 6th, 2010
I am 16 years old and I want to day trade stocks online. I want to use my name, like maybe with a custodial account with my mom to sign for me ( Do i need to use custodial acc or can I use my name ? ). I have a few thousand dollars to use for the minimum on like scottrade or whatever. Please somone give me advice, I am allowed to trade right ? Answer only if your info is legit please, because ive been reading a lot of completly different stuff. Thanks 
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Posted in Stock Market Software | 
Tags: custodial account, mom, Scottrade, Stocks Online, Thousand Dollars, Trade Stocks
Yes, you will need a custodial account in order to trade. In most states you must be at least 18 to have stock held directly in your name. Custodial accounts can be set up to revert to your name at age 18 or 21 when they are established. Laws can vary by stat, so look up uniform transfer to minors rules for your location.
As a minor, you are not technically allowed to enter into a purchase, so it is supposed to be the custodian trading. However, if the custodian were to let you have the username and password to the online trading account, the brokerage would have no way to tell if it was you or the custodian making trades. Talk it over with the person who acts as your custodian and make sure everyone is on the same page before moving forward.
Federal law says that you must be 21.
You need to use a custodial account. Chance has it that I am 16 also, I have a custodial account, so I have to tell my mother what to invest for me. You should read the "Intelligent Investor" before investing, as it is arguably the greatest investing book of all time. It teaches you how to properly long-term invest in companies that will make you a lot of money if you stick with a valuable company that was undervalued when you bought it.
Great idea but unfortunately your mom or dad can trade for you make sure you do your homework on what you want to invest in it took you a lifetime to save a bad moment in the market could lose you your money good luck and pray for us Marines keeping you safe to invest Semper Fidelis