Minors cannot open their own Webull account, but a parent or guardian can open a custodial account on their behalf

Webull does not allow anyone under 18 to create an account independently. The platform requires account holders to be at least 18 years old and a U.S. citizen or permanent resident. However, Webull offers custodial accounts, which let a parent or legal guardian control the account while the minor learns to invest.

A custodial account works differently from a regular brokerage account. The adult opens and manages the account, makes all trading decisions, and holds legal responsibility for the account. The minor's name appears on the account, but they cannot trade or withdraw money without the custodian's permission. This structure protects the minor while allowing them to build investment knowledge under supervision.

Key Takeaways

  • Webull custodial accounts must be opened by a parent or legal guardian, not by the minor themselves.
  • The custodian controls all trading, deposits, and withdrawals, but the account is held in the minor's name for tax purposes.
  • A minor can view their account and learn about investing, but cannot execute trades or move money without the custodian's approval.
  • The minor gains full control of the account when they turn 18, at which point it converts to a standard adult account.

How a Custodial Account Works on Webull

When a parent opens a custodial account, they provide their own identity information and the minor's Social Security number. Webull verifies both identities and links the account to the custodian's bank account for deposits. The custodian receives login credentials and can access the account at any time.

The minor may be given read-only access or limited access to view positions and learn how the market works, depending on what the custodian allows. Some parents share the login with their child so they can watch trades happen in real time. Others keep the login private and discuss investment decisions with their child separately. Webull does not restrict how much access a custodian gives to the minor — that is entirely the parent's choice.

All trading happens through the custodian's account. If the minor wants to buy or sell a stock, they ask the custodian, who executes the trade. Dividends and interest earned in the account belong to the minor and are reported on their tax return, not the custodian's.

Tax Treatment of Custodial Accounts

Custodial accounts are taxed in the minor's name, which can offer tax advantages for families with higher earners. Income earned in the account — dividends, interest, and capital gains — is reported on the minor's tax return. For 2024, the first portion of unearned income may be taxed at the minor's lower rate rather than the parent's rate, though rules vary by income level and type of earnings.

The custodian does not pay taxes on the account's earnings. Instead, Webull sends a 1099 form to the minor's Social Security number at tax time. If the minor has no other income and the account earnings are small, they may not owe federal income tax at all. A tax professional can advise on whether the minor needs to file a return based on their specific situation.

What Happens When the Minor Turns 18

When the account holder reaches 18, the custodial account automatically converts to a standard brokerage account in their name. The minor no longer needs the custodian's permission to trade, deposit, or withdraw money. All existing positions, cash, and account history remain intact — nothing is liquidated or transferred.

The custodian loses access to the account once the conversion happens. If the minor wants the custodian to continue helping them manage investments after age 18, they would need to grant access through Webull's account sharing or power of attorney features, which are separate from the custodial structure.

Opening a Custodial Account on Webull

The custodian starts by visiting Webull's website or app and selecting the option to open a custodial account. They will need to provide their own legal name, date of birth, Social Security number, and address. They will also need the minor's legal name, date of birth, and Social Security number.

Webull verifies identity information and may ask for additional documents like a government-issued ID. The process typically takes a few business days. Once approved, the custodian can fund the account and begin trading. There is no minimum deposit requirement, though some brokers set their own minimums.

Restrictions and Limitations

Webull custodial accounts have the same trading features as regular accounts — stocks, ETFs, options, and fractional shares are all available. However, the minor cannot trade independently, so they cannot place orders, change settings, or move money without the custodian's action.

Some investment types may have age-related restrictions. For example, options trading typically requires the account holder to be 18 and meet experience requirements. Since the custodian is the account holder of record, they can trade options if their account is approved for it, but the minor would not be able to trade options independently once they turn 18 unless they meet Webull's options requirements at that time.

Alternatives to Custodial Accounts

If a minor wants to learn about investing without opening a brokerage account, they can use Webull's paper trading feature. Paper trading lets anyone practice buying and selling stocks with virtual money, with no real money at risk and no account opening required. This is useful for teenagers who want to understand how markets work before their parents commit real money.

Some families also use savings accounts or certificates of deposit (CDs) at banks as a first step, since these are simpler and carry no market risk. A minor can have a savings account in their name at most banks starting at any age, though a parent must open it with them.

Frequently Asked Questions

Can a 16-year-old trade stocks on their own with Webull?

No. Webull requires account holders to be 18 or older to open and control an account independently. A 16-year-old can only trade through a custodial account opened by a parent or guardian, and only the custodian can execute trades.

Does the minor see what's in the custodial account?

That depends on what the custodian allows. The custodian controls all access. Some parents give their child read-only access to view positions and learn, while others keep the login private and discuss the account separately. Webull does not restrict how much visibility the custodian grants.

Who pays taxes on money earned in a custodial account?

The minor pays taxes on the account's earnings — dividends, interest, and capital gains. These are reported on the minor's tax return, not the custodian's. This can result in lower taxes overall if the minor's tax rate is lower than the custodian's.

What happens to the account when the minor turns 18?

The custodial account automatically converts to a standard brokerage account in the minor's name. They gain full control and the custodian loses access. All positions and cash remain in the account — nothing is sold or transferred.

Can a custodian remove money from the account before the minor turns 18?

Yes. The custodian controls the account and can withdraw money at any time. However, custodial accounts are legally meant to benefit the minor, so withdrawals should be for the minor's benefit. Laws vary by state on what counts as appropriate use.