Can Teens Invest on Robinhood?
Short answer
No, teens cannot open their own Robinhood accounts because the platform requires users to be at least 18 years old. However, teens can invest on Robinhood through custodial accounts, which parents or guardians open and manage until the teen becomes an adult. This lets teens start investing early while learning from adults.
Can teens open a Robinhood account on their own?
Robinhood requires all users to be at least 18 years old to open an account. This is because investing involves legal agreements and financial risks that minors generally cannot accept without adult supervision. If you are under 18, you cannot sign up for Robinhood or trade stocks independently on their platform.
This age restriction is common across most brokerage firms due to federal and state laws designed to protect minors from making unwise financial decisions. When you try to enter your birthdate on Robinhood and you’re under 18, the system will prevent you from completing the registration.
This does not mean teens can’t be involved in investing — it means that the legal responsibility lies with an adult until the teen becomes of age. To understand more about investing rules for teens, see Investing rules and regulations for teens.
How does investing through a custodial Robinhood account work?
Although teens can’t open Robinhood accounts alone, a parent or guardian can open a custodial account on their behalf. A custodial account is an investment account controlled by an adult but owned by the minor. Once the teen reaches a certain age (often 18 or 21, depending on your state), the account ownership transfers to them.
Here is a step-by-step example to illustrate:
- Your parent opens a custodial Robinhood account using their information and links their bank account.
- They deposit money—for example, $200—to start investing.
- The parent then buys shares of stock or ETFs on Robinhood within the custodial account.
- You can watch how the investments perform, ask questions, and learn from the experience.
- When you turn 18, your parent transfers control to you, and you can manage the account yourself.
This method gives you the chance to build investing experience under adult supervision. The money and investments are legally yours, but the adult manages the account until you reach adulthood. This is a safe and legal way for teens to get started investing.
Why is investing early important for teens?
Starting to invest as a teen is powerful because it gives your money more time to grow through compounding. Compounding means your investment earnings generate their own earnings over time, creating a snowball effect. The earlier you begin, the more you can benefit from this growth.
For example, if you invest $100 each month starting at age 15, by age 30 you could have significantly more money than someone who starts investing the same amount at 25. Even if you start small, the habit of investing can help you build wealth over many years.
Investing also helps you learn about money management, business, and how the economy works. It encourages a mindset of saving and planning for the future. While you cannot open your own Robinhood account yet, being involved through a custodial account helps you understand the markets and financial responsibility.
If you want to learn basic investing concepts, check out What Is Investing for Teens?.
What common terms do people confuse about teen investing on Robinhood?
Learning investing has its own language, and some terms are often mixed up. Here are some commonly confused ones:
- Custodial account vs. joint account: A custodial account is controlled by an adult for a minor’s benefit. A joint account is shared equally between adults. Teens cannot open joint accounts with adults on Robinhood.
- Robinhood account vs. brokerage account: Robinhood is a brokerage platform, meaning it offers brokerage accounts where you can buy and sell investments. A brokerage account is a general term for accounts that allow trading stocks, bonds, and other securities.
- Investing vs. trading: Investing generally means buying stocks or funds to hold for a long time to build wealth, while trading involves frequent buying and selling to try to make quick profits. Teens should focus on learning investing basics before considering trading.
- Stock ownership vs. options: Buying a stock means owning part of a company. Options are contracts that give you the right to buy or sell stocks at a specific price in the future and are more complex and risky.
Understanding these terms can help you communicate clearly with adults and make better decisions when you start investing.
What practical steps can teens take to start investing on Robinhood safely?
If you are under 18 and want to begin investing through Robinhood, here are concrete steps:
- Talk to a parent or guardian about investing together. Explain your interest in learning about the stock market and ask if they would open a custodial Robinhood account for you.
- Help them set up the account. They will need to provide personal information and link a bank account to fund investments.
- Learn together. Research companies or sectors you find interesting. For example, if you love technology, explore stocks like Apple or Microsoft. You could say, “I’d like to invest some money in tech companies to learn how they grow.”
- Start small. Suggest starting with a modest amount, such as $50 or $100, to get comfortable.
- Ask questions. When your parent makes trades, ask why they chose certain stocks or funds, what risks are involved, and how they decide when to sell.
- Monitor the account. Use the Robinhood app or website to watch stock prices and learn about market movements.
- Plan for transfer. When you turn 18, you can ask your parent to transfer control to you, so you manage the account directly.
This step-by-step approach encourages learning and responsibility, helping you build investing skills gradually.
Are there other platforms or accounts where teens can invest?
Yes, besides Robinhood, some other financial institutions offer custodial accounts or teen-friendly investing options. For example, Fidelity offers custodial brokerage accounts with investing tools and educational resources designed for minors.
Some banks provide teen debit cards with spending controls, which help build money management skills but don’t allow investing. To compare options and find what fits your family, you can research platforms that offer custodial accounts and teen investing tools.
Before choosing, consider fees, investment choices, educational support, and how easy it is to transfer account control when you become an adult. For details, see Can Teens Invest at Fidelity?.
How can teens learn about investing while waiting to open their own Robinhood account?
If you can’t open your own Robinhood account yet, there are plenty of ways to learn investing without risking real money:
- Use stock market simulators or apps. These allow you to practice buying and selling stocks with fake money. For example, apps like Investopedia’s simulator or other free online tools provide realistic experiences.
- Read beginner-friendly books or websites about investing basics. Focus on understanding stocks, bonds, ETFs, and how markets work.
- Follow news about companies, industries, and the economy. This helps you connect investing with real-world events.
- Talk with adults who invest. Ask questions about their strategies, mistakes, and lessons learned.
- Learn related money skills. Budgeting, saving, and understanding credit are important foundations for smart investors.
By building knowledge and confidence now, you’ll be ready to manage your own investments when you’re legally able to create a Robinhood or other brokerage account.
Frequently asked questions
Can I open a Robinhood account as a teen if I have a Social Security number?
No, Robinhood requires users to be at least 18 years old, regardless of having a Social Security number. Teens must use custodial accounts managed by an adult until they reach legal age.
What is the difference between a custodial and a joint account?
A custodial account is controlled by an adult for a minor’s benefit and transfers control when the minor reaches adulthood. A joint account is shared equally by two or more adults.
Can I trade cryptocurrencies on Robinhood as a teen?
Teens cannot trade cryptocurrencies on Robinhood because the age requirement applies to all types of investing on the platform.
How do I ask my parent to open a custodial Robinhood account for me?
Explain your interest clearly, for example: “I want to start learning how to invest by using a custodial account on Robinhood where you help me manage my money.” Be ready to discuss what you’ve learned and why it matters.
When can I control my custodial Robinhood account?
Control usually transfers to you when you reach the age of majority in your state, often 18 or 21. Check your state rules and plan ahead.