You asked, and here at Selfwealth, we’ve listened. Kids share trading accounts are finally here! SelfWealth members can now set up an account for a minor under the age of 18 as a beneficiary.

This is one of the many exciting projects we’ve been working on behind the scenes, and it’s part of our commitment to deliver Australia’s most-loved low-cost brokerage platform. The launch of kids accounts follows the development of our brand new mobile apps for both iPhone and Android, which are available now to download.

Apply for a kids share trading account now to help a child begin their long-term investment journey!

 

How do kids share trading accounts operate?

SelfWealth members may set up a kid’s share trading account on behalf of any child under the age of 18. 

You can open an account as an adult, either individually or through a joint account with two adults, where you will be designated as the trustee(s) of the trading account. This is the legal framework for opening a kid’s share trading account, with the adult(s) holding the shares, and the minor a beneficiary of the account. 

The account will function just like a normal SelfWealth share trading account. However, when the child turns 18, shares held in the name of the trustee(s) will be transferred into the name of the minor who has now become an adult.

The application process for a kid’s trading account is the same as that when applying as an adult, however, you will need to supply the child’s birth certificate, or a birth certificate extract, alongside their personal details. The birth certificate does not not need to be certified.

As there may be tax implications for you to consider, please speak to a tax accountant with regards to any responsibilities or obligations that may arise from opening a kid’s trading account. SelfWealth is not licensed to provide tax advice on this matter.

 

What are the benefits of kids share trading accounts?

Starting early can make all the difference when it comes to long-term investing. With that in mind, helping a child take those early steps in the share market is one of the best gifts that a loved one can do for a child, grandchild or relative. Here are some of the benefits of kids share trading accounts.

  • With a longer investment horizon, kids can take advantage of compounding growth when investing and accumulate wealth over time
  • Create and nurture a source of funds to help pay for a child’s future university education, first-home deposit, savings pool or even a retirement fund
  • Teach a child the importance of financial responsibility, including how to maintain healthy financial habits 
  • A kids account functions the same as that of a regular share trading account, making it a familiar experience for all SelfWealth members and simple to operate
  • Allow a child to follow trends or social issues that resonate with them
  • You can continue to deposit into a kid’s trading account over time, making it the gift that keeps on giving

 

How do I open a kid’s share trading account?

It is simple to open a SelfWealth kids share trading account. Simply follow these steps:

  1. Sign in to your SelfWealth trading account on the website
  2. Click on the avatar (top right corner)
  3. Choose ‘Settings’
  4. Click “Open an Additional SelfWealth Trading Portfolio”
  5. Click “Start Application”
  6. Select “Kids (Minor)” from the options regarding application type and follow the prompts – have the minor’s birth certificate or birth certificate extract ready!

 

So what are you waiting for? Apply now to open a kid’s share trading account and start investing for the next generation!

 

If you have any questions, please visit help.selfwealth.com.au for a quick answer.

If you want to talk to us directly, you can get us on live chat during trading hours or email us at support@selfwealth.com.au.

 

SelfWealth Ltd ACN 52 154 324 428 (“SelfWealth”) (Australian Financial Services Licence Number 421789). The information contained on this web site is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. Taxation, legal and other matters referred to on this website are of a general nature only and should not be relied upon in place of appropriate professional advice.