Teaching teenagers about the market early on can be one of the best financial lessons a parent passes on, and both Fidelity and Charles Schwab have accounts built specifically for the job.

The Fidelity Youth Account, an individual brokerage account for teens, lets teens ages 13 to 17 invest in most U.S. stocks, ETFs, Fidelity mutual funds and fractional shares, with no account or subscription fees, plus no minimum deposit requirements. The teenager is the owner on the account.

Newer on the scene, the Schwab Teen Investor Account is a joint brokerage account for teens (also ages 13 to 17) and their parent or legal guardian with a similar fee-free structure. With Schwab, teens can trade stocks, ETFs, mutual funds and fractional shares.

Here’s how the two options stack up against one another, including a look at their investment options, fees, parental controls and educational tools.

The Fidelity Youth Account is a teen-owned brokerage account that a parent opens for their kid. Parents must have an existing Fidelity account or open one at the same time. This is different from a joint or custodial account, where the account is usually set up and managed by an adult for the minor. With the Fidelity Youth Account, the teen is the legal owner and sole investment decision-maker.

The Schwab Teen Investor Account takes the opposite approach. It’s a joint brokerage account where the parent and teen invest together; they’re both owners and can both trade and move money in the account.

Investment options

The Fidelity Youth Account lets teens invest in most U.S. stocks, ETFs and Fidelity mutual funds. Fractional shares are also available. Though not an investing option, teens can access a debit card as well to make purchases from their brokerage account.

The Schwab Teen Investor Account gives teens access to most U.S. equities, ETFs, mutual funds and fractional shares. Teens can also invest in “Schwab Investing Themes,” which are curated baskets of up to 25 stocks organized around trends or personal values such as active lifestyle, cancer research and discount/luxury lifestyles. Plus, teens can level up their investing experience with Schwab’s “thinkorswim” trading software. Parents on the account can opt in for a debit card for their teen as well.

Fees

The Fidelity Youth Account offers commission-free trading, plus has no subscription fees, no account fees and no minimum balance to open.

The Schwab Teen Investor Account has no account minimum or maintenance fees, as well as offers $0 commissions on online stock and ETF trades.

Parental controls and oversight

A parent or guardian must open the Fidelity Youth Account on behalf of their minor (and they can close the account at any time). From there, parents can view balances and transactions, monitor investing activity, as well as access account activity alerts. Parents cannot place trades or withdraw money from the account, since the teen is the owner. Parents can transfer money from their own Fidelity account into the Fidelity Youth Account. Once the teen turns 18, the Fidelity Youth Account can convert to a standard Fidelity brokerage account.

Parents and teens can open a Schwab Teen Investor Account together; a parent or guardian must initiate and approve the account (and can close the account at any time). As a joint account, parents and teens both have the ability to trade and move money in and out, with parents able to set alerts for trading activity and transfers. Parents also control whether the teen gets a debit card. The teen on the account can have full ownership once turning 18 or they can open an individual brokerage account and transfer assets (the latter which must be done at age 21 regardless).

Educational tools and app experience

With the Fidelity Youth Account, teens have access to educational investing articles and videos. Within the app, teens can follow investments by sector and see what stocks are trending.

The Schwab Teen Investor Account incentivizes learning from the start. Teens who complete the “Quick Start to Stock Investing” course within 45 days of account opening receive $50 in fractional shares across the top five S&P 500 stocks. From there, teens can access Schwab’s broader education hub with videos and articles for beginners like “Schwab Coaching” YouTube videos.

Because Fidelity and Schwab offer similar investment options and fee structures, the biggest factor in deciding which account to go with is how involved you want to be.

The Fidelity Youth Account is the better pick if your goal is to give your teen genuine ownership and autonomy over their investing decisions, with you in a supervisory role rather than as a co-pilot.

The Schwab Teen Investor Account is built for parents who want to invest alongside their teen, guide trades in real time and stay actively engaged in the process.

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