Bday present question - fractional shares
I need recommendations for a trading platform for fractional shares.
The bday person is 17 years old.
Very bright 17 year old. Hopefully this can kickstart the youngster to invest in shares.
$100 will also go to an index fund. Need some recommendations there as well and also how to set it up so that it can be managed by the 17 year old.
Initial investment is $200.
Gotta be over 18 unless you want to be beneficial owner for now and hold in trust
Are they turning 18 this birthday?
Very bright 17 year old
We will have to take your word.
Turning 17.
Yes, up n coming Warren Buffet…
trading platform <> Warren Buffett
Either you're a goose, they're a goose, or you're both geese.
Try Raiz. I am happy with it so far.
Betashares
Dhff (or ghff) "and chill" (and continually buy regularly for ever)
Actually, scrap that
Minimum age is 18.
HISA for the next 12 months then start investing when they turn 18.
Very bright 17 year old. Hopefully this can kickstart the youngster to invest in shares.
And what is your experience with shares? Are you going to gift something you have no idea about? And hope they learn it for themselves?
This. -> HISA for the next 12 months then start investing when they turn 18. (onetwothreefour)
I know this suggestion doesn't really help for the upcoming birthday
It's probably not worth the hassle regarding setting up an account for a minor considering: bare trust, TFN complications etc, especially since they are only a year off being over 18.
Personally, I think they should stick with ETFs for the long term, since making a couple of wrong investments in direct shares may put them off shares in general.
Vanguard VAS / VGS is a simple combination to consider. This book may also be of interest. https://www.amazon.com.au/Strong-Money-Australia-Financial-I…
Open a Super account with an industry fund (Hostplus, AusSuper, etc) and invest there. Will come in handy with FHSS too.
Pearler
But I think fractional shares only apply to international ones. For ASX listed, you'd still have to purchase whole shares.
Great platform for auto-investing.
I set up a Trust account for my 15 year old on CMC markets. I don't think it supports fractional shares though. He has been trading AUD and US stocks for the last month or so. (as I can see all his trades). The platform is much better then CommBank (which also allows Trust accounts for minors, but limits trades to AUD). As it's his money (from part time jobs) he is doing quite a bit of research on his trades and is up 5% over the last month. Even if he loses some money the lessons will be invaluable vs just sticking the money into a super account.
CMC Markets also has no brokerage for each transaction under $1000
Great for DCA into ETF as the limit is per ticket.
I read that some of these low fee brokers mean you don't have any ownership, title or hold, not sure about this… basically it's not held in your name? I'm probably need to do more research but what happens if the platform goes bust… do you lose it all?
With amounts that low you really want to avoid brokerage.
Vanguard allow free investment in some of their products starting at $200 with a Vanguard Personal account, maybe a good option?
https://www.vanguard.com.au/personal/