How Old Do You Have to Be to Start Trading? Age Requirements Explained

The minimum age to start trading stocks in your own name is typically 18 years old. That’s the age requirement when you can legally open a brokerage account without needing a parent or guardian. But if you’re underage and interested in the markets, there are still legal and effective ways to build trading skills and start preparing.

You should read this article because it breaks down exactly what age you need to be to start trading and explains the legal options available if you’re under 18.

I’ll answer the following questions:

• What is the minimum age to open a trading account?
• Can minors legally trade stocks?
• What trading options are available for teens under 18?
• How can you learn trading skills before turning 18?
• What documents do you need to open a brokerage account?
• Are there benefits to learning trading at a younger age?
• What should parents know if their child wants to start trading?
• What are the tax rules for minors who earn from trading?

Let’s get to the content!

What are the Minimum Age Requirements for Trading?

You need to be at least 18 years old to open your own trading account and begin buying or selling stocks independently. This age restriction exists because you need to be a legal adult to enter contracts, including those required by brokers. Most platforms follow “know your customer” (KYC) regulations that require proof of identity, age, and consent.

In my 20+ years of trading and teaching, I’ve seen that the most successful traders are the ones who respect rules and treat the process seriously from day one. Age doesn’t matter—just look at the wisdom my youngest millionaire student had at 20!

You don’t just need capital—you need eligibility, documentation, and the right mindset. That starts with meeting the legal age requirement and understanding the responsibility that comes with managing your own money.

Before you rush to open a trading account the day you turn 18, understand that this isn’t a video game. It’s your money, and the markets can be ruthless if you treat them casually.

What’s Allowed if You Want to Trade Under the Age of 18?

Minors can’t open their own standard brokerage accounts, but that doesn’t mean they have no access to trading or education. There are still ways to get experience, with supervision and within the rules.

• Custodial Accounts
  A parent or guardian can open a custodial account under the Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA). The adult manages the account until the minor reaches the age of majority, at which point full control is transferred.
• Joint Accounts With a Parent or Guardian
  While not as common, some brokers allow a joint account with a parent as the primary account holder. This gives minors limited access to trading while staying within legal and compliance guidelines.
• Practice and Paper Trading Platforms
  You don’t need real funds to start learning. Platforms like Thinkorswim and TradingView offer simulated trading environments that replicate live markets. It’s a great way to learn the mechanics of trading stocks, options, or forex without risking capital.

When I started teaching, one thing became clear: students who began studying while underage were better prepared when they reached trading eligibility. They didn’t waste time—they used it.

What are the Requirements for Opening a Brokerage Account?

Opening a brokerage account requires you to pass KYC checks and provide specific documentation. This is not about trading strategy—it’s about compliance, and every broker is required to follow the same process.

You’ll typically need:

• A government-issued ID to verify age and identity
• A Social Security number or taxpayer identification number
• Proof of a bank account to transfer funds
• A permanent residential address
• A brief financial profile including income, net worth, and risk tolerance

This process is tied to financial regulations aimed at protecting both the trader and the platform. I’ve seen students delayed for weeks because they submitted incorrect documents or skipped steps. These accounts deal with real assets and must follow strict legal and regulatory frameworks.

When you finally get approved, that’s just the start. Don’t confuse opening an account with being ready to trade. Your readiness depends on your preparation, not just your age.

How to Learn Trading Skills If You’re Under 18

Being under the age of majority doesn’t stop you from learning. In fact, this is the best time to focus on education, practice, and developing a solid foundation before you put real money into the market.

When you’re finally old enough to start trading, don’t waste time on platforms that feed you delayed info—you need real-time data to train your eyes and react like a real trader.

When it comes to trading platforms, StocksToTrade is first on my list. It’s a powerful day and swing trading platform with real-time data, dynamic charting, and a top-tier news scanner. I helped to design it, which means it has all the trading indicators, news sources, and stock screening capabilities that traders like me look for in a platform.

Grab your 14-day StocksToTrade trial today—it’s only $7!

Practice With Paper Trading Accounts

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Paper trading accounts let you place simulated trades using real-time market data. These platforms help you understand how stocks move, how fees work, and how execution timing affects your trades. You don’t get the emotional impact of real profits and losses, but it’s the closest thing to actual trading.

Many of my top students started this way. They didn’t chase profits—they chased process. Paper trading is how you start building that process before putting capital at risk.

Use Market Simulation Tools

Simulation tools go beyond paper trading by replicating things like slippage, order fills, and commissions. They’re designed to mimic the real-world impact of decision-making in a fast-moving market. This is useful for learning how different order types work, how volatility impacts trades, and how capital moves through a position.

If you’re serious about learning trading, use these tools like a pilot uses a flight simulator. They’re not just toys—they’re training systems.

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Learn Through Financial Education Apps and Resources

There are dozens of trading apps and platforms aimed at improving financial literacy. Some focus on terminology, some walk you through trading strategies, and others offer quizzes and content to test your knowledge. Whether it’s mobile apps or browser-based lessons, your job is to absorb as much useful information as you can.

Technology has made it possible to learn trading from anywhere. I’ve used everything from charts on my phone to AI-based pattern recognition. If I had these tools when I was starting out, I would’ve learned a lot faster.

Parent-Supported Learning Structures

If your parents support your interest in the markets, ask them to help you structure your education. This could include watching trading lessons together, reviewing your paper trades, or opening a custodial account where you both participate in trade planning.

Young traders who grow under structured guidance often outperform their peers once they go independent. Having a second set of eyes and some accountability can speed up the learning curve without risking unnecessary losses.

Are There Benefits to Starting to Trade at a Younger Age?

Starting young gives you time to develop the skills that actually matter—analysis, emotional control, risk management, and pattern recognition. The earlier you begin building your knowledge, the longer you can compound those skills.

Most people waste their early years scrolling or playing video games. If you’re studying charts and learning how to manage risk instead, you’re already on a different level. That advantage shows up fast when you hit 18 and start trading with real funds.

I’ve seen this repeatedly. The students who began learning early tend to be more mature traders. They understand the difference between gambling and strategy. They’re less emotional, more analytical, and better prepared to handle losses without quitting.

What Parents Should Know About Minors Who Want to Trade

If you’re a parent of a teen who wants to trade, your role is more than just giving permission. You’re taking on legal, financial, and educational responsibility for every decision made in that account.

• Monitoring and Approval Controls
  Any account opened for a minor must be managed and supervised by the adult. That includes approving deposits, withdrawals, and trades. Brokers will hold the adult responsible for all activity.
• Risk Awareness for Young Traders
  Minors are still developing emotional and cognitive maturity. The volatility of the stock market and the risks tied to trading decisions can lead to frustration, anxiety, and financial mistakes. It’s your job to provide guardrails and teach the importance of capital preservation.
• Tax Considerations for Minor Accounts
  Earnings from trading can create taxable events. If a minor generates income through capital gains or dividends, those earnings may be taxed at the parent’s rate under the kiddie tax. Keep good records and consult a financial advisor when needed.

I’ve had parents thank me years later because their kids didn’t just learn how to trade—they learned responsibility. When done right, this can be a valuable life lesson, not just a money game.

Key Takeaways

• You must be 18 or older to legally open your own brokerage account.
• Minors can access markets through custodial accounts, simulations, or parent-supported tools.
• Parents must actively manage and supervise any trading activity done on behalf of minors.
• Taxes, risks, and financial education are all part of the process—start early, stay smart.

This is a market tailor-made for traders who are prepared. Stocks thrive on volatility, but it’s up to you to capitalize on it. Stick to your plan, manage your risk, and don’t let FOMO drive your decisions.

These opportunities are fast and unpredictable, but with the right strategy, you can make them work for you.

If you want to know what I’m looking for—check out my free webinar here!

Frequently Asked Questions

Do All Brokerages Offer Custodial Accounts for Minors?

No. Some brokers offer custodial services under UGMA or UTMA, but others focus only on adult accounts. Always check the broker’s terms of service and eligibility requirements.

What are the Risks and Restrictions of Trading as a Minor?

The biggest restriction is not being able to open a personal account. The biggest risk is treating trading like a game. Without maturity and supervision, minors can develop bad habits or take unnecessary risks that carry over when they go live.

What are the Tax Implications for Minors Who Earn Income from Trading?

Income from custodial accounts is subject to taxation. If the minor earns more than a certain amount, part of the income may be taxed at the parent’s rate under kiddie tax laws. It’s smart to consult a tax professional to stay compliant and avoid surprises.

Are There Age Restrictions on Buying Specific Types of Securities?

Yes, age restrictions apply across the board, and minors cannot directly buy or sell securities like stocks, bonds, or options without a custodial or supervised structure. This applies even to lower-risk investments or individual shares, since brokers require legal consent and verified identity. These rules protect minors from entering financial agreements they may not fully understand.

Can Minors Participate in Long-Term Investing?

Minors can participate in long-term investing through custodial accounts managed by a parent or guardian, with the adult making all final decisions. These accounts can hold various assets including shares, mutual funds, and other investments aligned with long-term financial goals. While minors can’t make independent trades, they can still benefit from exposure to how investors think and plan.

Should Young Traders Focus on Short-Term or Long-Term Goals?

Young traders should balance short-term learning with long-term goals like building financial knowledge, discipline, and decision-making skills. Focusing only on quick profits without understanding the risks tied to securities and investments leads to mistakes. Investors and traders of all ages succeed when their strategies match both their goals and experience level.