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How Old Do You Have To Be To Open a TD Ameritrade Account?
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TD Ameritrade Age Requirement
TD Ameritrade no longer accepts new brokerage accounts because its customers and services were transferred to Charles Schwab. To open a standard Schwab brokerage account and use the thinkorswim trading platforms independently, you generally must be at least 18 years old. If you are under 18, you can still open an account, but a parent, guardian, or custodian must be involved. Keep reading for more information.
Age of Majority
The age of majority is the point when the government legally recognizes a person as an adult. It is 18 in most U.S. states, although different ages may apply to certain accounts and activities. Investors generally must be at least 18 to open a standard individual taxable brokerage account at Schwab.
Brokerage firms offer several account types for people who have not reached the age of majority. Schwab, which now provides services to former TD Ameritrade customers, offers custodial accounts and a joint Teen Investor account for investors between 13 and 17. Account eligibility and minimum-age rules may be different outside the United States.
Custodial Accounts
There are two main types of custodial brokerage accounts in the United States:
Uniform Transfers to Minors Act (UTMA) accounts and Uniform Gifts to Minors Act (UGMA) accounts. They
operate in similar ways and generally receive similar tax treatment. UTMA accounts can accept a broader selection of property, potentially including real estate, while UGMA accounts usually hold cash, securities, and other financial assets. Most states have adopted UTMA rules, although UGMA accounts are still available in some locations.
Opening a custodial account requires two people: an adult custodian who controls and manages the account and a minor who owns its assets. This structure allows a child to hold investments even though the child cannot independently manage a standard brokerage account.
The custodian does not have to be the person contributing money or investments. Contributions can come from parents, grandparents, relatives, or other donors, and the custodian is also permitted to contribute.
Assets transferred into the account immediately and irrevocably belong to the minor, whose name, birth date, and other identifying information appear on the account. When the custodianship ends under the applicable state rules, control of the account must be transferred to the former minor, and the custodian loses the authority to manage it.
Donors cannot reclaim assets after contributing them to a custodial account, even if they change their minds before the minor gains control. Transfers into UTMA and UGMA accounts are irrevocable gifts.
The age when the beneficiary receives control is usually 18 or 21, although the transfer age can be as high as 25 under the laws and account rules of certain states.
Before the account is transferred, its money can be spent on expenses that are solely for the minor’s benefit and is not restricted to educational costs. Because control eventually passes completely to the beneficiary, parents and grandparents may prefer another account when they want the funds limited to education or another specific purpose.
Where to Open a Custodial Account
Charles Schwab is likely the most popular choice for a brokerage custodial account. Former TD Ameritrade customers now open these accounts through Schwab. There are no opening or maintenance fees,
online commissions for listed stocks and ETFs are $0, and customers receive the account services and investment resources of one of
the world’s largest brokerage firms.
Coverdell Education Savings Plan
Another possibility is a Coverdell Education Savings Account. Money in a Coverdell account can pay qualified education expenses at the elementary, secondary, and higher-education levels. The designated beneficiary generally must be younger than 18 when contributions are made, although this age restriction does not apply to certain special-needs beneficiaries.
Parents and grandparents commonly contribute to Coverdell accounts, but organizations such as corporations and trusts can contribute as well. Organizations are not subject to contributor income limits, while contribution eligibility for individuals depends on modified adjusted gross income.
529 Plans
Next is the 529 plan, the most popular investment account for minors today. Unlike a Coverdell account, a 529 plan is controlled by an account owner and does not require the designated beneficiary to be a minor. Its funds can cover qualified college expenses, certain K-12 tuition costs, eligible apprenticeship expenses, and other permitted education costs. Like the other education accounts discussed in this article, a 529 plan offers several potential tax advantages and limitations compared with a regular brokerage account.
Opening a 529 plan can require a different application process because these accounts are established through state-sponsored programs, and many online brokerage firms don’t offer them. Schwab does provide access to the Schwab 529 Education Savings Plan.
Minor IRA
The final account covered here is a custodial IRA for a child or teenager. It operates much like a standard Traditional or Roth IRA, except an adult custodian opens and manages the account on behalf of the minor until the applicable transfer age is reached.
The minor must have earned income to make IRA contributions. Contributions also cannot exceed the minor’s eligible earned income or the applicable annual IRA contribution limit.
Written by Alex Bost
Updated on 7/6/2026.
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