Stockmarket Investing for Teenagers

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lonelyplanet

Registered User
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Hi,
My teenage daughter is keen to invest some of her money in the Stockmarket . She doesnt have a big pot but I am encouraging her to learn . I have an account with DeGIro but cant find any info on how I can set up a custodian sub account for her under my account. I opened an account on Etoro now but again dont see any info.

Any ideas or suggestions.

Thanks
 
lonelyplanet said:
Hi,
My teenage daughter is keen to invest some of her money in the Stockmarket . She doesnt have a big pot but I am encouraging her to learn . I have an account with DeGIro but cant find any info on how I can set up a custodian sub account for her under my account. I opened an account on Etoro now but again dont see any info.

Any ideas or suggestions.

Thanks
Click to expand...
At the moment Degiro does not allow this. I mailed them about it last week and they cited compliance with some EU issues around transparency. I’ve noticed found a suitable alternative yet
 
How much are you talking about?

If the amounts are small, the simplest would be for her to give you the money and you invest it in your name.

For example, if you have €10,000 worth of shares in Ryanair and she wants to invest €500 in Ryanair, then she gives you the money and you allocate them to her.

This is not tax efficient, but if the amounts are small, then that won't matter.

Brendan
 
I believe DeGiro allow you to open a second account in your own name (different ID and login). You could also use Revolut, you can buy fractions of shares, so would be good for small amounts.
 
Open second account


To open a second account: logout of the app
Choose option top right "Open an account"
Enter your existing email
Enter new username
Enter new password

Teenager can then login with new credentials

Transfer money per usual but specify the new username
 
I have a degiro account. 2 UCITs accumulating ETF's. I helped NotMyRealName jnr. set up the same portfolio ( she's 18). At deemed disposal or earlier liquidation, assuming gain, the tax liability is hers. Just to be clear, the funds were hers, and in her name.
I'd like to do the same for NotMyRealName jnr. 2.0 but she's not yet 18. The cash funds are in her account ,in her name.
If I set this up as a second account, then the tax liability is mine. Is this reasoning correct? Should I wait until she's 18 and then help her set up then?
In both cases we're talking lump sum purchases....so no investment on an ongoing basis.
 

Low cost Stockbroking account for minors

HI, Just wondering if anyone would have advise on setting up a stockbroking account for kids - under 10. I recently filled out the paperwork for Degiro but they wrote back to say they are not setting up minor accounts. Just looking for low cost brokerage for putting small amount of money into...
www.askaboutmoney.com
 
Simple contract law. A company cannot enforce a contract against a minor so they don't enter into them. Stick the money into your own account or create a second one for them.

I invest in the S&P 500 and gave my kids a unit each so they can see how it goes up and down in value. My 13 year old son has some interest in it, my 10 year old daughter has none.


Steven
www.bluewaterfp.ie
 
You just open it in your own name and draw up a bare trust agreement confirming that you’re merely holding the investments for the benefit of the child.
 
It’s more exciting for the kids if you open the additional accounts picking a username that is similar to your kids names. That way at least they think it’s their account (as per my link above)
 
Thanks for the input all and landlord I agree with you that its better for them to have their own account and they have some ownership when the eventual sale of stock occurs then can figure out the tax liability.
 
Can you set up multiple accounts in De Giro...have you under 18's that I want to set up..Other option is to set up one in Revolut / Etoro...
 
lonelyplanet said:
Thanks for the input all and landlord I agree with you that its better for them to have their own account and they have some ownership when the eventual sale of stock occurs then can figure out the tax liability.
Click to expand...
Just so we are not misunderstanding each other, with Degiro if you created an account with a different username, you would still be the sole owner of this account, but your kids don’t have to know that. It is a shame they stopped the minor accounts.
 
Thanks landlord
landlord said:
Just so we are not misunderstanding each other, with Degiro if you created an account with a different username, you would still be the sole owner of this account, but your kids don’t have to know that. It is a shame they stopped the minor accounts.
Click to expand...

Understand now :) Yep will create a new user with same email...Btw has anyone used E-toro ?? Any views on it ?
thanks
 
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