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Important things you'll want to know about a broker: As points of reference, minimum balances for online discount brokers are usually between $500 and $1,000.ĭeciding whether or not a broker meets your needs is just as important as figuring out if you meet the broker's criteria for doing business. Because it's expensive for a broker to maintain your account, they have to be sure that you're bringing in enough incremental revenue to cover the expenses of having you as a customer. Most brokers require a minimum account balance for the same reason that banks do: They make money by lending your cash out to other customers in exchange for interest. With a custodial account, you'll still be able to trade stocks just as you would with your own account, except that Mom's and Dad's names will be on the account as well.Īnother thing you'll have to think about is the minimum account balance required by your broker.

If you're not considered a legal adult yet, you can still invest, but your parents will need to set up a custodial account with your broker.Ī custodial account is essentially an account set up for a minor where the parents bear the legal responsibilities on behalf of the minor. If you're young and interested in investing, keep in mind that in order to open your own brokerage account, you'll need to be a legal adult (usually 18 years old). These restrictions usually boil down to age and money. One of the first questions you'll want to ask yourself when you start your search for a broker is, "Which brokers will let me open an account?" Some brokers have restrictions that limit who will be able to open an account with them. But when you get right down to it and you're ready to start investing, what should you look for in a broker and what do you need to do to get set up? Each of them will likely tell you that they can offer more for your investing dollar than any of their competitors can. There are lots of brokerage firms out there.