can you do stocks at 17? Complete Guide

Can you do stocks at 17?

Can you do stocks at 17? Short answer: yes — but with conditions. In most jurisdictions a 17-year-old cannot open an unrestricted brokerage account in their own name because they lack legal contractual capacity. However, there are several legal and practical routes for a 17-year-old to buy, own, and trade stocks, including custodial accounts (UGMA/UTMA), teen or youth accounts offered by brokers, custodial Roth IRAs (if the minor has earned income), 529 plans, and family investing apps with parental oversight.

This long-form guide explains how each path works, the paperwork and taxes involved, typical broker limitations, state-specific timing for gaining full control, plus a checklist to help a 17-year-old — and their parent or guardian — get started safely. It also highlights learning-first approaches and points you to authoritative resources and timely market examples to show why understanding company metrics matters when investing.

Legal age to open a brokerage account (summary)

In the United States, most full-featured brokerage accounts require account holders to be at least 18 years old because 18 is the usual age of contractual capacity. Some states set the age of majority at 19 or 21; check your state rules. Even if a 17-year-old cannot open an account in their sole name, they can still own securities through adult-supervised arrangements where a parent or custodian opens an account on their behalf.

Key points:

• Majority age: commonly 18, but varies by state (some 19 or 21). Confirm with state law.
• Contractual capacity: brokers require a legally able party to sign agreements; minors typically can’t.
• Ownership vs control: minors can be legal owners while an adult controls transactions until the minor reaches majority.

Main methods for a 17-year-old to invest in stocks

If you’re wondering can you do stocks at 17, here are the primary practical routes:

• Custodial accounts (UGMA/UTMA)
• Teen / youth brokerage accounts offered by some firms
• Custodial Roth IRA (for minors with earned income)
• 529 college savings plans (investment for education expenses)
• Gift or transfer of shares from a parent or family member
• Fintech teen investing platforms and family apps (fractional shares, educational features)

Each option has tradeoffs for control, tax reporting, permitted investments and timing when the minor gains full control.

Custodial accounts (UGMA / UTMA)

Explanation: Custodial accounts under the Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) let an adult (the custodian) open and manage an account for the benefit of a minor. The assets are legally the minor’s property but the custodian manages trading and withdrawals until the state-specified age of majority.

What they can hold: Stocks, ETFs, mutual funds and other permitted investments depending on the broker. These accounts are widely used because they’re flexible: investments can be used for any purpose that benefits the child (subject to tax rules).

Control and timeline: The custodian is a fiduciary and must act in the minor’s best interest. At the state-specified age (commonly 18 or 21), control transfers to the former minor — they can then trade, withdraw, or convert the account.

Taxation: Earnings (interest, dividends, capital gains) are reported in the child’s name, but “kiddie tax” rules may apply to unearned income above certain thresholds and can cause some income to be taxed at the parents’ marginal rate.

Pros and cons:

• Pros: Relatively simple to open; flexible investment choices; legal ownership for the minor.
• Cons: No privacy once control transfers; potential impact on financial aid calculations; irreversible gift once deposited.

Teen / Youth brokerage accounts (example: Fidelity Youth)

What they are: Some brokerage firms offer teen or youth accounts allowing minors (often ages 13–17) to learn investing under parental oversight. These accounts are typically set up or approved by a parent or guardian and provide educational tools and a controlled trading environment.

How they differ from custodial UTMA/UGMA accounts: Teen accounts may be structured so that the teen has trading visibility and some degree of control within preset limits; specific legal ownership and custodial rules depend on the broker’s structure.

Typical restrictions:

• No options, margin or short selling
• No access to IPO allocations
• Limited or no crypto trading in many teen-focused accounts
• Restrictions on penny stocks and other speculative instruments

Use cases: Good for hands-on learning, practicing trade execution, and building habits. Parents maintain oversight and can intervene where necessary.

Custodial Roth IRA (for minors with earned income)

Overview: A minor who has earned income (wages from a job, self-employment, etc.) can contribute to a Roth IRA up to the lesser of their earned income or the annual contribution limit. A custodial Roth IRA is opened by an adult custodian for the minor.

Advantages: Contributions to a Roth IRA are made with after-tax dollars, but earnings grow tax-free and qualified withdrawals in retirement are tax-free. Starting early can offer powerful long-term tax benefits due to compounding.

Requirements and limitations:

• Must have verifiable earned income (and you can’t contribute more than you earned that year)
• Annual contribution caps apply (follow yearly IRS limits)
• Custodial rules apply until the minor reaches the state age of majority

Practical note: Even a small annual contribution can become significant over decades, making this an attractive option for minors with part-time job income.

529 college savings plans

What they are: State-administered education savings plans that allow investments to grow tax-advantaged when used for qualified education expenses. An adult opens and controls the 529 account; the minor is the beneficiary.

Why use one: If the primary goal is college funding, 529s offer tax advantages and high contribution limits. They aren’t direct brokerage accounts, but many 529 plan options include age-based investment mixes and the ability to invest in funds that include equities.

Limitations: Funds are intended for education; withdrawals for non-qualified expenses may incur taxes and penalties.

Brokerage apps and teen investing platforms (examples: Greenlight, Copper, fractional shares)

Overview: Fintech platforms and family apps are designed to introduce teens to investing with parental controls, fractional shares, and educational resources. Common features include spending and investing controls, allowance automation, and the ability to buy fractional shares so teens can invest small amounts.

Features to expect:

• Fractional share trading so a small dollar amount can buy part of a high-priced stock
• Parental approval flows for certain trades
• Educational dashboards and simulation modes
• Safety controls and limits on risky products

What to check: Each product differs on what’s allowed (e.g., some allow ETFs only; others permit individual stocks). Read the platform’s rules, fees and custody structure.

If the question is can you do stocks at 17 through these apps — yes, most of them are built exactly for that purpose, with built-in parental oversight.

How to open and fund an account (practical steps)

A practical checklist for a 17-year-old and parent/guardian preparing to start investing:

1. Decide your goal: College savings, long-term retirement investing, or learning/trading experience?
2. Choose the account type: custodial (UGMA/UTMA), teen/youth brokerage account, custodial Roth IRA (if eligible), or a 529 plan.
3. Research providers: Compare broker fee schedules, available investments, educational tools and custodian features. If exploring crypto/wallets later, prioritize Bitget Wallet for Web3 access.
4. Gather required documents: Social Security numbers for both minor and adult, government ID for the adult, proof of earned income (for Roth IRA), and banking info for funding.
5. Complete the application: Most brokers provide online custodial or teen account applications. The custodian signs the agreement.
6. Fund the account: Transfer from a bank, set up recurring transfers from allowances or paychecks, or process a gift/transfer of shares from family.
7. Confirm investment permissions: Make sure you understand what investments are allowed (stocks, ETFs, mutual funds) and what is restricted (options, margin, certain funds).
8. Set rules for trading and education: Decide whether the custodian will place trades, whether parents will pre-approve transactions, and what learning resources the teen will use.

Practical tips: Start small, use low-cost ETFs or fractional shares, and prioritize a low-fee provider to keep costs down.

Parental roles, controls and responsibilities

Custodial vs teen-owned accounts:

• Custodial (UGMA/UTMA): The custodian controls transactions and has a fiduciary duty to act in the minor’s best interest. The assets legally belong to the child.
• Teen / youth accounts: Parent/guardian often sets up and oversees the account; the teen may have some trading privileges depending on the broker.

Parental responsibilities:

• Supervise and educate: Help the teen understand diversification, fees, and short-term volatility.
• Document earned income for Roth IRA contributions.
• Keep records for tax reporting and financial aid purposes.
• Understand when control transfers — once the minor reaches the state-specified age of majority, the child gains full control.

Important caution: Funds in custodial accounts are irrevocable gifts and could affect college financial aid calculations because they’re considered the student’s assets in many aid formulas.

Taxation and reporting considerations

Basic points to know:

• Unearned income in a custodial account (dividends, interest, and capital gains) is reported in the child’s name.
• Kiddie tax: Unearned income above a threshold may be taxed at the parent’s marginal tax rate under “kiddie tax” rules. Check current IRS thresholds and rules.
• Custodial Roth IRA contributions: Require earned income documentation; earnings grow tax-free and qualified withdrawals in retirement are tax-free.
• Gifts and basis: When shares are gifted to a minor, the cost basis and holding period rules carry over; keep good records to calculate capital gains when sold.

Recordkeeping: Maintain records of contributions, gifted shares, dividends received, and statements for accurate tax filing and to support future conversions when the account moves from custodial to standard ownership.

State law variations and conversion at majority

UTMA/UGMA and age of transfer:

• Age of majority differs by state (commonly 18; in some states 19 or 21). The custodian should verify the applicable age in their state.
• When the minor reaches the legal age required by state law, control of the assets must be transferred to the former minor. At that point the account can be converted to a regular brokerage account in their name.

Practical implication: Plan ahead. If you expect the teen to use funds for college at 18, be aware that the teen may gain full discretion over those funds when they reach the age of majority.

Restrictions and typical broker limitations for minors

Common restrictions across custodial and teen accounts:

• No margin trading (borrowing to trade)
• No options trading or complex derivatives
• No short-selling
• Limited or no access to IPO allocations
• Some funds or asset types may be unavailable in teen-focused accounts
• Direct crypto trading is commonly excluded from teen brokerage products; for crypto access and wallet recommendations, consider Bitget Wallet with parental guidance

Why restrictions exist: These limitations protect minors from high-risk products that require more experience or legal capacity to use safely.

Risks and considerations

Investing always involves risks, including the risk of loss. For minors and parents:

• Prioritize education: Understand diversification and long-term investing principles.
• Avoid speculative bets and high-fee funds.
• Be mindful of liquidity needs — custodial assets may be needed soon for college or other expenses.
• Monitor tax implications and the potential impact on financial aid.

Two-sentence caution: Markets fluctuate and past performance doesn’t guarantee future results. Minors and parents should focus on learning, prudence and a long-term perspective rather than attempting to time short-term market moves.

Alternatives and preparatory steps before investing

If you or your parent/guardian decide not to invest immediately, consider these preparatory steps:

• Simulated trading/demo accounts: Practice placing orders and learn market terminology without real money.
• Low-cost index ETFs in a custodial account: Good for beginners who want diversification.
• High-yield savings accounts or CDs: Suitable for short-term goals or emergency savings.
• Fractional shares: Allow investing with small dollar amounts to gain exposure to big-name stocks.
• Educational resources: Books, free online courses and broker education centers help build fundamentals before investing real funds.

These steps can reduce mistakes and build confidence for when the teen opens a real investing account.

How to get started — recommended approach for a 17-year-old

Recommended checklist for a 17-year-old asking "can you do stocks at 17":

1. Learn the basics: review diversification, fees, taxable vs tax-advantaged accounts, and the meaning of dividends and capital gains.
2. Talk with a parent/guardian: decide on goals and select an account type (custodial UTMA/UGMA, teen account, Roth IRA if eligible, or a 529 for education).
3. Compare providers: evaluate fees, available investments, learning tools and ease of transfer once the child reaches majority.
4. Start small: consider low-cost ETFs or fractional shares and set up a modest recurring contribution.
5. Track taxes and records: keep documentation for earned income (Roth) and gifts/transfers.
6. Plan for conversion: know your state’s age of majority and what happens to account control when you reach it.

Practical tip: Use simulated trading or demo modes to get comfortable with order types (market vs limit), and practice reading company metrics like revenue, EPS and P/E ratios before buying.

Frequently asked questions (short Q&A)

Q: Can a 17-year-old trade without a parent? A: Usually no. Most brokers require a parent or custodian to open a custodial or teen account. Direct, unrestricted accounts normally require majority age.

Q: Can a 17-year-old withdraw funds from a custodial account? A: The custodian controls withdrawals until the minor reaches the age of majority. Legally the funds belong to the child, but the custodian manages disbursements.

Q: Can a 17-year-old open a Roth IRA? A: Yes, if they have verifiable earned income and a custodian opens the account. Contributions cannot exceed earned income for the year and must respect IRS limits.

Q: Do custodial funds affect financial aid? A: Yes — custodial account assets are often treated as the student’s assets when calculating need-based financial aid, which can have a greater impact than parental assets.

Q: Are there broker restrictions for teen accounts? A: Yes — options, margin, shorting and many speculative products are commonly restricted.

Market example and why fundamentals matter (timely data)

Understanding company fundamentals is a core skill before buying individual stocks. To illustrate how investors and analysts look at stocks, consider recent reporting on software and regional banking companies.

• As of January 15, 2026, according to Barchart, Adobe (ADBE) had notable valuation and performance data: the stock traded near $291, down about 17% year-to-date and roughly 38% below its 52-week high of $465.70. Trailing price-to-earnings (PE) was reported at 17.7, below its three-year historical average of 38.2. The PEG ratio (PE divided by earnings growth) was around 0.95, and forward price-to-sales was reported near 4.7. Analysts’ mean price target was noted at $436.21. These metrics show how market participants evaluate growth expectations and valuation compression amid industry shifts such as AI-driven changes to business models.

• Also as of January 15, 2026, according to Barchart, regional bank BOK Financial (NASDAQ: BOKF) reported Q4 CY2025 revenue of $589.6 million and GAAP EPS of $2.89, exceeding analyst estimates. BOK Financial’s reported market capitalization was approximately $8.08 billion. Such company-specific results matter because revenue, earnings, margins and tangible book value trends are key inputs when assessing a stock.

Why this matters for a 17-year-old: Learning to read simple metrics — stock price vs recent high, PE ratio, revenue and EPS beats or misses — helps you assess what you own and why the market might be moving. These figures are factual indicators; they do not predict future performance but help you form a reasoned view.

Source note: As of the cited date, the above data were reported by Barchart. They are included here for educational context only and not as investment advice.

Further reading and official resources

For authoritative guidance and broker-specific details, consult these types of resources (search by name in a browser or on the broker’s site):

• Fidelity Youth account documentation and FAQs (for teen account features)
• Investopedia: how to open a brokerage account for a minor (custodial accounts explained)
• Bankrate: guides on investing as a teenager and custodial account tax implications
• Greenlight and Copper: product guides for teen investing platforms and family apps
• Barchart news and company reports for recent market data and company metrics

When you need a Web3 wallet for education or later crypto exposure, consider Bitget Wallet as a secure option recommended within Bitget’s ecosystem.

References

• Barchart — Adobe and BOK Financial coverage;
  As of January 15, 2026, according to Barchart
  (includes Adobe valuation metrics, YTD performance and BOK Financial Q4 CY2025 results).
• Fidelity — Youth account documentation and FAQs (check broker for up-to-date details).
• Investopedia — Guide to custodial brokerage accounts and UGMA/UTMA basics.
• Bankrate — How to invest as a teenager (tax and financial aid considerations).
• Greenlight and Copper — Teen investing platform guides (product feature overviews).

Note: The sources listed above are for user reference and further reading. Any date-specific data quoted above identify the reporting date to provide timeliness and context.

Final notes — next steps for a 17-year-old

If you’re a 17-year-old asking “can you do stocks at 17” and ready to act: start by learning basic investing concepts, talk with your parent or guardian, and select a custodial or teen account that matches your goals. Begin small with diversified, low-cost instruments like index ETFs or fractional shares, and keep taxes and financial-aid implications in mind. When exploring crypto or Web3 later on, use a secure wallet and consider Bitget Wallet within Bitget’s ecosystem.

Want to learn more? Explore broker education centers, try a simulated trading account, and revisit this guide when you’re ready to open a custodial account. Immediate action step: ask a parent or guardian to review the account types listed here and to gather the documents noted in the funding checklist so you can start practicing good investing habits early.