Below we list online brokerage companies promotion offers for opening new custodial or UTMA/UGMA account. Investment companies offer cash bonuses, free trades, and other incentives for new investors as well as for the customers planning to transfer investment account from a different firm.

  Firstrade rating

Firstrade Promotion For Opening an Account

$0 fees on all mutual fund, stock, ETF, & option trades.

Open Firstrade Account

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  4.5-star brokerage firm rating

TD Ameritrade Promotion For Custodial Account

$0 stock/ETF trades and transfer fee refund.

Open TD Ameritrade Account

TD Ameritrade Review

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  Etrade brokerage firm rating

Etrade Incentive To Open an Account

No commissions on stocks and ETFs.

Open Etrade Account

Etrade Review

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  3.5-star brokerage firm rating

Merrill Edge Offer For Custodial Account

Up to $600 when you open a Merrill Edge account with at least $20K.

Open Merrill Edge Account

Merrill Edge Review

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  Ally Invest rating

Ally Invest Deal To Open Custodial Account

Up to $3,500 cash bonus + $0 trades + transfer fee rebate.

Open Ally Invest Account

Ally Invest Review

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What Are Custodial Accounts Used For?

Most custodial accounts are opened by a parent wishing to put away some savings to give their child a financial head start in life once they turn 18 (or 21 in some states). Typically, the child turned young adult might use the account to fund college or to make a down payment on a first house, but in reality they can use the money however they wish since they become the sole, legal owner of the account upon adulthood.

Who Controls the Funds in a Custodial Account?

As the creator of a custodial account, you are only allowed to withdraw funds from the account prior to the child reaching adulthood if the money is used strictly for the child’s benefit. This is why it’s so important to understand the legal structure of a custodial account - once it’s created you have no legal recourse to reclaim the funds in the account if you change your mind. As the account creator, you manage the funds for the benefit of the child until adulthood, but the assets are no longer yours.