Brokers for
Options brokers for custodial accounts
6 brokers allow options in a custodial account for residents of the United States. The same facts for each: fees, approvals, countries.
A custodial account is an account an adult opens and runs for a minor, such as a UTMA or UGMA account. Each broker decides whether options are allowed in it, so check which options it allows in a custodial or teen account and the minimum age. 6 brokers allow options in a custodial account for residents of the United States.
At a glance: 6 brokers, 1 at $0 per contract, 5 with $0 exercise and assignment, 6 approving naked options, 3 working with QuantWheel; median fee $0.65 per contract, lowest margin rate at $50,000 8.20%.
| Broker | QuantWheel | Exercise | Approval | 0DTE | Margin | Offers | |
|---|---|---|---|---|---|---|---|
 TradeStation | Trade & Sync | $0 via QuantWheelIndex options add $0.75 per contract | $0 | Naked | Yes | Negotiable | |
 E*Trade | Trade & Sync | $0.65 per contract$0.50 at 30+ trades per quarter | $0 | Naked | Yes | 11.70% | |
 Fidelity | Sync-only | $0.65 per contractBuy to close at $0.65 or less costs $0 | $0 | Naked | Yes | 10.63% | |
 eOption | $0.10 + $1.99 per tradeBase fee and other charges apply | $9 | Naked | Not published | 8.20% | ||
 Merrill Edge | $0.65 per contractCash-settled exercise and assignment charged per contract | $0 | Naked | Yes | Not published | ||
 Vanguard | $1 per contractEligible higher-balance accounts receive waivers | $0 | Naked puts | Not published | 11.25% |
The brokers one by one
What qualifies each for this page, from its fee schedule and options agreement, and the one fact that sets it apart.TradeStation$0 via QuantWheel · $0 exercise and assignment · naked
TradeStation opens options accounts for residents of the United States. It charges $0 via QuantWheel (Index options add $0.75 per contract). Exercise and assignment cost $0. It approves up to naked short options. It trades on Web, Desktop, Mobile, API. QuantWheel syncs positions and trades from the account and suggests; with Trade & Sync the orders you approve go to the broker from QuantWheel.
Options in custodial accountsTradeStation's UGMA/UTMA custodial account (US residents only) can trade options, with the custodial application offering only Level 1 (covered calls, protective puts) and Level 2 (long calls and puts, collars, covered puts, long straddles and strangles). No minimum age is published, as the account is held for a minor.
E*Trade$0.65 per contract · $0 exercise and assignment · naked
E*Trade opens options accounts for residents of the United States. It charges $0.65 per contract ($0.50 at 30+ trades per quarter). Exercise and assignment cost $0. It approves up to naked short options. It trades on Web, Desktop, Mobile, API. QuantWheel syncs positions and trades from the account and suggests; with Trade & Sync the orders you approve go to the broker from QuantWheel.
Options in custodial accountsOptions trading in custodial (UGMA/UTMA) accounts is allowed with limits, carries special provisions and may be limited at Morgan Stanley's discretion. Which levels are allowed and any age rule are not published.
Fidelity$0.65 per contract · $0 exercise and assignment · naked
Fidelity opens options accounts for residents of the United States. It charges $0.65 per contract (Buy to close at $0.65 or less costs $0). Exercise and assignment cost $0. It approves up to naked short options. It trades on Web, Desktop, Mobile. QuantWheel syncs positions and trades from the account and suggests; you place the orders at the broker.
Options in custodial accountsUGMA/UTMA custodial accounts are eligible for options Tier 1 only (covered calls and buying calls and puts), while the Fidelity Youth Account for teens does not allow options. No minimum age is stated for custodial options.
eOption$0.10 + $1.99 per trade · $9 per event · naked
eOption opens options accounts for residents of the United States. It charges $0.10 + $1.99 per trade (Base fee and other charges apply). Exercise and assignment cost $9 each. It approves up to naked short options. It trades on Web, Mobile. It is not connected to QuantWheel.
Options in custodial accountsUTMA custodial accounts can get option Levels 1 and 2 only (covered calls, cash-secured puts, buying calls and puts, no margin), and the custodian signs an 'Option Trading in a Custodial Account' letter accepting that eOption generally discourages options in custodial accounts. Minimum age is not published.
Merrill Edge$0.65 per contract · $0 exercise and assignment · naked
Merrill Edge opens options accounts for residents of the United States. It charges $0.65 per contract (Cash-settled exercise and assignment charged per contract). Exercise and assignment cost $0. It approves up to naked short options. It trades on Web, Mobile. It is not connected to QuantWheel.
Options in custodial accountsUTMA/UGMA custodial accounts may use income and hedging strategies only (covered calls, and protective puts with long puts allowed only as a hedge against 100 shares held), and speculative option strategies are not permitted. An options application must be approved first, and no minimum age is stated.
Vanguard$1 per contract · $0 exercise and assignment · naked puts
Vanguard opens options accounts for residents of the United States. It charges $1 per contract (Eligible higher-balance accounts receive waivers). Exercise and assignment cost $0. It approves up to naked short puts, not naked calls. It trades on Web, Mobile. It is not connected to QuantWheel.
Options in custodial accountsUGMA/UTMA accounts get Level 1 only, which allows writing covered calls and buying protective puts but not buying calls or puts.
Compare two of them
The pair pages among these brokers, with a verdict.More by what you trade
Every page in this folder lists the brokers that qualify, with the same facts.Questions people ask
Custodial and teen accounts