Penny Stock Brokers 4u

While it is true that many teenagers are more concerned with school work, getting a date for the prom, or buying their first set of wheels there are some that look to the future and wish to get a jump start on their financial stability earlier than most.  If you are one of those teenagers and are asking, “Can teenagers invest in the stock market?” you will be happy to know that it is possible.

The first thing that any investor needs, regardless of age, is a brokerage account. If you are at least 18 years of age you can open a brokerage account. Thankfully this objective is not like drinking where you have to wait till 21 years of age! While you might be tempted to jump in quickly, there are a couple things that you need to know.

First of all, there are two kinds of brokers – discount and full service. Here is where it can get a bit tricky. As a new investor it is prudent to work with a full service broker that can guide you through the process. Unfortunately, most of the major brokerages will not open a full service account without a pretty hefty opening balance. Chances are if your money has come from babysitting or carrying for neighbors’ lawns, you may not have enough to do this and will then be limited to using a discount broker. This is not all bad news, as a discount broker is much less expensive when it comes to commissions and fees.

Secondly, it is very important to educate yourself on how the stock market works, the terms used, and gain an understanding of the risks involved with each type of stock. You can learn a lot of this by looking at the online research resources of the various brokerages. Many of them can be accessed even before you open an account so you can learn what you need to know before ever investing a cent. If your parents are involved in the stock market, they may have good advice. There is nothing better than knowledge gleaned from experience – it can certainly put you in the position of not repeating the same mistakes although you will surely make some of your own along the way.

Lastly, if you are under the age of 18, have no fear, you can still invest in the stock market. However, because you cannot open a brokerage account on your own, you will need the assistance of a parent or guardian. Under the Uniform Gifts to Minors Act (UGMA), you can own stock but your parent or guardian must keep control of it until you reach 18.