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How Old Do You Have To Be To Open a thinkorswim Account?
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thinkorswim Age Requirement
You must be at least 18 years old to open a thinkorswim (Charles Schwab trading account) in the United States on your own
(without a custodian). If you are under 18, you can still open an account, but a parent or guardian will need to be involved. Continue reading for more details.
Age of Majority
The age of majority is the age at which a person is legally recognized as an adult. In most U.S. states, this is 18, although some states may set different ages for certain legal matters. To open a standard taxable brokerage account, you generally must be 18 years old.
Brokerage account rules can vary, which makes it possible for individuals below the age of majority to invest through certain account types. Some brokerage firms may also require a higher minimum age for accounts opened outside the United States.
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Custodial Accounts
There are two main types of custodial accounts in the United States:
the Uniform Transfers to Minors Act (UTMA) account and the Uniform Gifts to Minors Act (UGMA) account. Both
function similarly and provide comparable tax treatment. The UTMA account is more modern and can include assets like real estate, while the UGMA account is limited to securities. Most states follow UTMA rules, although a few still operate under UGMA.
Opening a custodial account requires two parties: a custodian (an adult who manages the account) and a minor who is below the age of majority. This setup allows minors to have investment accounts.
The custodian is not required to be the person contributing funds. That role belongs to the grantor, and there can be multiple grantors. In some cases, the custodian can also act as a grantor.
In every case, the assets in the account legally belong to the minor, whose name and date of birth are listed on the account. Once the minor reaches the age of majority, full control of the account transfers to them, and the custodian no longer has authority.
If contributors later decide they want to reclaim funds before the minor reaches adulthood, they cannot do so. Money placed into a custodial account is irrevocable.
For custodial accounts, the age at which control transfers to the minor can range from 18 to 25, depending on state law.
Funds held in a custodial account can be used for a wide range of expenses, not just education. Because of this flexibility, some families may consider alternative account types.
Where to Open a Custodial Account
Charles Schwab is one of the most commonly chosen brokers for custodial accounts. It offers no account maintenance fees,
$0 commissions on stock and ETF trades, and access to a wide range of investment tools from one of
the largest brokerage firms globally.
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Coverdell Education Savings Plan
Another option is the Coverdell Education Savings Plan. Funds in a Coverdell account must be used for qualified education expenses at any level. Similar to UTMA/UGMA accounts, the beneficiary must be under 18 when the account is established.
While parents and grandparents typically open Coverdell accounts, organizations are also allowed to contribute. Institutions are not subject to income limits, but individuals must meet certain income requirements to contribute.
529 Plans
Another common choice is the 529 plan, which is one of the most widely used investment accounts for minors. Unlike a Coverdell, funds in a 529 plan are primarily intended for higher education expenses. As with other minor accounts, there must be a custodian and a minor beneficiary. These plans also offer various tax advantages (and some limitations) compared to standard brokerage accounts.
Setting up a 529 plan can sometimes be slightly more involved, and not all online brokerage firms provide access to them.
Minor IRA
The final option to consider is a custodial IRA for minors. This works like a standard Individual Retirement Account, but it is managed by a custodian on behalf of a minor under 18.
A key requirement is that the minor must have earned income in order to contribute to the account. This rule is the same as for adult IRAs.
Written by Alex Bost
Updated on 4/22/2026.
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