Schwab One Custodial
no-fee UGMA/UTMA custodial brokerage from a major national broker
How it works
The Schwab One Custodial Account is a UGMA/UTMA brokerage account that lets an adult custodian invest on behalf of a minor. It has no account minimums, no maintenance fees, and commission-free trading on U.S. stocks and ETFs with fractional shares via Schwab Stock Slices. The account irrevocably transfers to the child at the state-determined age of termination, typically 18 or 21. Funds can be used for any purpose.
Is it right for you?
Consider if you
- You want a flexible custodial account usable for any future expense
- You want $0 minimum and commission-free stock and ETF trading
- You already invest with Charles Schwab and want to stay in one ecosystem
Skip if you
- Families wanting tax-advantaged education savings (use a 529 instead)
- Parents not ready to give up full control at the age of termination
Your money and data
Charles Schwab is an SEC-registered broker-dealer and SIPC member. Assets are SIPC-protected up to $500,000 (including $250,000 for cash), with additional excess SIPC coverage through Lloyd's of London up to $150 million per customer. The account is a UGMA/UTMA custodial account — the child takes full control at the age of termination determined by state law.
Pros & Cons
Pros
- $0 minimum, $0 account fees, commission-free U.S. stock and ETF trades
- Funds can be used for anything — not limited to education expenses
- Self-directed or automated via Schwab Intelligent Portfolios ($5,000 minimum)
Cons
- Child gains full irrevocable control at age of termination (varies by state)
- Counted as the child's asset on FAFSA, significantly reducing financial aid eligibility
- No tax advantages specific to education expenses
Pricing details
$0 to open · $0 annual fees · commission-free U.S. stock and ETF trades
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