Is it possible for a teen to invest their money?

Question

i need to earn money and i was wondering if (im only a teen) i can invest money in something like google or mcdonalds. am i too young or is it possible?

Answer 1

Absolutely the sooner you start making your money work for you the better. I opened a brokerage account at 14 years old with my bank, and then found a cheaper way to trade with a discount brokerage firm. I use Scottrade but there are many others you can start with.

You can start with as little as $1,000 dollars but I recommend saving up at least $2,500 so you can become diversified.

"A Nobody" is completely wrong. If you have an adult on your account, it is then called a custodian account, it is not illegal at all. In fact in order to open a savings account you need an adult signature.

All the information is set out here on this page.

http://209.85.215.104/search?q=cache:qgh...

Scroll down to page 4.

When you look up some brokerage firms you want to open with you will need to have a parent (also called a custodian) on your account so someone will be held responsible for the activity of that account.

Here are a list of discount brokerages that are reputable that you can look towards opening with:

Scottrade

Ameritrade

E-Trade

Schwab

Nobletrading

Firstrade

Trading Direct

Answer 2

In the United States you can not open an account with a brokerage firm until you are 18

You should have one of your parents open a custodian account for you.

ALEX- has given you very bad information, what he suggest is illegal, and such an account can be restricted, reported as a fraudlent account (which could prevent him from having an account with another US brokeage firm for several years), account liquidation with no recovery of any losses or gains

Do it the proper way any one can be dishonest and cheat their way through life

Answer 3

I would not recommend investing money in the stock market at your age with the limited resources you have.  It is expensive and the returns are limited. The US and UK markets are also falling and you could lose money.  You would be better to invest in a high interest savings account (eg Egg.com (UK)).

Whatever you do dont follow the link that crackpot left about $2500 each moth for surveys.  Waste of time.

Answer 4

Yes, normally this is done through a parent or legal guardian by utilizing a UTMA or UGMA account at the brokerage.  The money is yours, but the adult is the one who legally operates the account until you are of age.