Comparing Custodial Roth IRA Providers for Kids in 2025
Opening a custodial Roth IRA for your child can be a fantastic way to kick-start their financial future. These accounts let a minor with earned income save for retirement early, with all the tax-free growth benefits of a Roth IRA. As the adult custodian, you manage the account until the child comes of age, helping them learn investing basics along the way. In this post, we’ll compare several major U.S. custodial Roth IRA providers – including Fidelity, Vanguard, Charles Schwab, TD Ameritrade, E*TRADE, and Ally Invest – from the perspective of a parent opening an account for a child. We’ll focus on key criteria like account minimums, fees, investment options, platform usability (especially mobile apps), educational resources, and unique features for families.
What to Look For in a Custodial Roth IRA Provider
When choosing a custodial Roth IRA provider for your child, keep these factors in mind:
- Account Minimums & Fees: Ideally, there should be no or low minimum deposit required to open the account, and no maintenance or custodial fees.
- Investment Options: A good provider will offer a wide range of investments – including stocks, ETFs, mutual funds, and more – so the child’s portfolio can be well diversified.
- Platform Usability: Since you (and eventually your child) will be managing the account, an easy-to-use website and mobile app are important.
- Educational Resources: Resources like tutorials, webinars, or articles can help both parents and teens learn investing basics together.
- Unique Family Features: Look for special programs or perks for young investors, such as teen investing accounts, financial literacy tools, or referral bonuses.
Comparison of Top Custodial Roth IRA Providers
Fidelity
- Minimums & Fees: $0 account minimum, $0 annual fees.
- Investments: Wide selection, including zero-expense-ratio index funds and fractional shares.
- Usability: Highly rated mobile app (~4.8★); easy to manage multiple accounts.
- Education: Rich content and planning tools; strong youth-focused programs.
- Unique Features: Offers a Fidelity Youth Account for teens; excellent customer service.
- Open an account: Fidelity Custodial Roth IRA
Vanguard
- Minimums & Fees: No account fee with e-delivery; mutual fund minimums may apply.
- Investments: Low-cost index funds/ETFs; fractional ETF shares available.
- Usability: Simple interface; app rated well on iOS.
- Education: Solid content, calculators, and goal planning tools.
- Unique Features: Mutually owned, strong long-term investment philosophy.
- Open an account: Vanguard Custodial Roth IRA
Charles Schwab
- Minimums & Fees: $0 minimum; no account maintenance fees.
- Investments: Huge selection; fractional shares via Stock Slices.
- Usability: User-friendly site/app; thinkorswim platform for advanced users.
- Education: Excellent learning hub; programs for financial literacy.
- Unique Features: Offers 529 plans and Coverdell ESAs; good in-branch support.
- Open an account: Schwab Custodial Roth IRA
TD Ameritrade (now part of Schwab)
- Minimums & Fees: $0 minimum and fees.
- Investments: Extensive options including no-transaction-fee funds.
- Usability: Easy-to-use app and powerful thinkorswim tools.
- Education: Rich library with beginner-friendly courses and videos.
- Unique Features: Legacy of strong educational focus continues under Schwab.
- Open an account: TD Ameritrade (via Schwab)
E*TRADE
- Minimums & Fees: $0 account minimum; no maintenance fees.
- Investments: Large selection including 4,400+ no-fee mutual funds.
- Usability: Top-rated app; robust tools for growing investors.
- Education: Quality content and calculators; access to Morgan Stanley insights.
- Unique Features: Frequent bonus offers; good blend of ease and depth.
- Open an account: E*TRADE Custodial Roth IRA
Ally Invest
- Currently Not Offering Custodial Roth IRAs
- Note: Ally offers UGMA/UTMA custodial brokerage accounts, but not Roth IRAs for minors.
- Open a standard account: Ally Invest
Final Thoughts
Choosing the right custodial Roth IRA provider depends on your priorities. Fidelity and Schwab offer the best overall experience for most families, especially when you value ease of use and education. Vanguard is excellent for index-fund purists, while E*TRADE and TD Ameritrade (now Schwab) provide robust tools and learning support.
Whichever provider you choose, remember: the biggest win is starting early. Involving your child in the process builds financial literacy and shows them how long-term investing works. With decades to grow, even small contributions can blossom into something powerful by the time your child retires. Happy saving!
Using Pixie to Stay Organized
Managing your child’s Roth IRA just got easier with Pixie — a free, secure family organizer app. Create a visual board for your child’s account to log contributions, store documents like pay stubs, and set reminders (e.g. “contribute before year-end”).
Pixie’s clean, shareable interface makes it simple for both parents to stay in sync and even involve kids. You can build a mini “Investing 101” board with videos and notes, or track chores linked to IRA contributions to help kids learn by doing.
Instead of juggling sticky notes and memory, Pixie keeps everything in one place — securely and privately.
Disclaimer: Information is current as of late 2025. Be sure to check each provider's site for the latest details.