How To Open Charles Schwab Custodial Account In 2022 (Detailed Guide)

by Administrator
12 minutes read

Custodial accounts are financial accounts opened for minors and managed by an adult. Parents often open custodial accounts for their children. A custodial account can be opened by grandparents, family members, or friends for a minor. There are two types of custodial accounts available: the Uniform Gifts to Minors Act (UGMA) and the Uniform Transfers To Minors Act (UTMA).

Custodial accounts are savings or investment accounts. They are typically held at a bank or brokerage. The account is handed to the child when the child reaches the age of 18, usually between 18 and 25, and they then take control. Custodial accounts that do not charge account fees or require a minimum deposit are the best. They also allow fractional shares. This article will explain how to open Charles Schwab custodial account.

About Charles Schwab

Before we know how to open Charles Schwab custodial account, Let know a bit about Charles Schwab,  It is a full-service broker with over $6.6 trillion of client assets on its platform, is Charles Schwab. Schwab customers will soon be able to access TD Ameritrade’s Thinkorswim trading platform due to the company’s acquisition.

The TD Ameritrade trading platform, geared towards traders, will join Schwab’s StreetSmart online trading platform. This platform already caters to less-intensive investors. Schwab’s wide selection of financial products is sufficient for the average investor. However, it may not be the best option for active options traders who need trading access to futures, forex, or cryptocurrency markets.

The good news is that it is easier to view the platforms than to use them. Schwab makes it easy for customers to view all their assets on its website, even those outside Schwab’s platform. All it takes to check balances, verify positions and obtain position-specific research is a click away. You can choose one of your portfolio holdings and enter a symbol to get current information about that security.

Other information includes charts, ratings, earnings reports, peers, ratios, dividends, and financial statements. All information is available in an intuitive manner across platforms. The website has calendars that show earnings and economic releases. These calendars include actuals and expectations. Edge workstation links to the web page. This level of information is not available on the mobile platform, but that’s to be expected given its monitoring and position entry focus.


Before we know how to open Charles Schwab custodial account, Let know the Usability Charles Schwab, Charles Schwab is like all online brokers. It struggles to include all of the features and platforms it offers for different investors. Site navigation across Schwab’s many platforms is intuitive. The account setup process takes only ten minutes online. These platforms include:

  • The website
  • StreetSmart Edge is a highly customizable desktop workstation.
  • The Charles Schwab mobile app
  • StreetSmart Mobile is a less-used mobile application.
  • Schwab’s StreetSmart Central platform has been simplified for investors who trade options and futures.

Pros and Cons Of Charles Schwab

Before we know how to open Charles Schwab custodial account, Let know the Pros and cons of Charles Schwab:


  • Multiplatforms to suit the diverse needs of customers.
  • Trading stocks and ETFs is free.
  • Live customer service, news, research, and stock/ETF screeners. Educational tools are available.
  • You can add additional accounts to the platform to get a complete financial picture.
  • Robo-advisory and physical branch networks


  • There is no automatic cash sweep to a money-market account.
  • Options traders who use multiple leg strategies may find it prohibitive to pay option trading fees.
  • The only available cryptocurrency trading is Bitcoin futures. FX trading is not possible. Futures trading requires a separate platform.
  • Margin rates are higher than some competitors.

ALSO READ: How To Open HSA Account In Bank Of America In 2022

Trade Experience

How To Open Charles Schwab Custodial Account (1)

Before we know how to open Charles Schwab custodial account, Let know the Trade Experience of Charles Schwab. All platforms offer real-time data streams. Both Edge and the website offer is drawing tools for charts. However, the web version of Edge is less comprehensive than the downloadable one. You can trade from an Edge chart by clicking the Trade button at the bottom of the chart. This launches an order entry window. Charts on mobile are not able to draw. Multiple orders can be placed on Edge and the website, but not via the mobile app.

StreetSmart Edge has many customization options. These include what information you want to see in your top account balances, how you would like it to save certain stock searches or ETF searches, and customized order tickets. The website allows you to save preferences and stock/ETF/mutual funds screens.

StreetSmart Edge is unique because it shows probability graphs and profit for options strategies. StreetSmart Edge and mobile platforms allow traders to trade four-leg options strategies like condors and butterflies. They offer dropdowns that let users choose which strategy will create an order ticket to match their chosen strategy (vertical or calendar, ratio spreads, and butterfly/condor).

Options trading is limited to spread positions with two legs and basic options. StreetSmart Edge is the only platform that allows for conditional and contingent orders. The website and mobile would not allow entering a limit order with a contingency that, upon execution of the limit order, a one-cancels-the-other (OCO) order is created to add a stop loss and profit-taking order against the new position.

Mobile Trade Experience

Before we know how to open Charles Schwab custodial account, Let know the Mobile Trade Experience of Charles Schwab. Although the mobile app is user-friendly, serious traders will find some limitations. The app cannot place contingent orders and has limited charting capabilities.

The basic actions an investor needs, such as obtaining balances, researching securities and getting news, and entering trades, were simple and intuitive. The mobile app offers a chart, the Schwab rating, a quote summary, and news.

It also provides information like earnings (and the next earnings announcement), market capitalization, and requirements for margins for individual securities. The mobile app has an easy dropdown menu to allow you to set up spreads or four-leg options strategies. However, there is no profit graphing and similar analytics as what is available at the workstation.

The default view in the mobile app is the summary view (brokerage, futures totals), and you can click on an account to see more information or click on positions from the menu at the top left. The “Markets” page in the mobile app provides a quick overview of the markets and sectors. It also lists the latest news and Schwab’s market updates.

Stock-specific news is available when you bring up an ETF or stock. News can also be filterable. StreetSmart Edge will be the default platform for traders and active investors. However, less demanding investors can afford to invest in and monitor their portfolios through the mobile app.

Checklist For Applications

Before we know how to open Charles Schwab custodial account, it is helpful to have these details:

  • Your Social Security Number
  • Your driver’s license number
  • Name and address of your employer (if applicable).
  • Contact information, birth date, Social Security number, and other details about the minor
  • Statement information about funds that you might want to transfer

Which Charles Schwab Account Should I Open?

Before we know how to open Charles Schwab custodial account, Which Charles Schwab Account is preferable to  Open. Charles Schwab offers a wide range of account types. These include the common individual retirement accounts (IRAs), taxable individual brokerage accounts, and 529 plan accounts. Your investment goals will determine which account you choose.

The standard Schwab One account is a taxable brokerage account that allows trading. It gives you access to stocks, fractional shares trading, ETFs, and other options. The Global Account, which allows you to access 12 international markets in local currencies, is the best option if you’re looking for a more international brokerage account.

Schwab offers the Roth IRAs and traditional IRAs. There are also rollover IRAs and inherited IRAs. If retirement is your goal, they also offer the simplified employee pension (SEP IRAs). Multiple account types can be used to save for your child’s education. Charles Schwab offers all accounts you might need to meet your investment goals.

How To Open Charles Schwab Custodial Account

Below are the ways on how to open a custodial account with Charles Schwab, You can open an account online, by phone, or in one of over 300 branches. To open an account online in about 10 minutes Click here.

  1. Select your account type
  2. Fill out an application.
  3. Start investing and funding.
  4. Call us at 800435-4000 or click HERE to locate a branch.

Can you open a custodial account online? the answer is YES. You can open an account online by Clicking here

When can I access my account

Once your application has been approved, they will email you your account number. Your account number can be used to log into to manage your account.


Charles Schwab is a long-standing online broker. The recent acquisition of TD Ameritrade has further strengthened this position. Schwab’s size and economic scale allow it to offer its clients a broad range of services, education, and support, including equities and fixed income.

Schwab offers streaming quotes and free trading for stocks and ETFs. It also has web, desktop, and mobile apps that are intuitive and run smoothly. Schwab’s website navigation is quite good, considering the amount of content and size. The menus have a lot to choose from but are organized by categories and intuitive.

Schwab’s wide range of services, low fees for equity and ETF trading, and complete suite of services make it a great choice for most investors and traders. However, Schwab might not be the best option for smaller groups in the trading/investing world. High volume traders due to the $0.65 commission per trade, futures traders due to the need for a separate platform, and traders trading on margin as lower rates are available elsewhere. Also, people who want to trade currencies or cryptocurrencies that are not available at Schwab.


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