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Written by Cari Scribner on February 21, 2021
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Does Webull Offer Joint Or Custodial Accounts?

Webull offers only two types of individual accounts: cash and margin.

Each user can have one of each. If you already own one kind, you will need to create a new login before applying for the other.

The platform also supports Traditional, Roth, and Rollover IRAs. Each member can open one IRA, and you must have an individual account before creating an IRA.

Joint accounts, custodial and corporate accounts are not available.

However, keep reading for some good alternatives to consider for a joint or custodial account!

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What Are Joint Investment Accounts?

Just as the name implies, joint investment accounts allow two or more people to invest together in one account. You can invest in just about anything with a partner, including stocks, bonds and funds, real estate. Combined ownership in financial assets is referred to as joint tenancy.

These accounts let multiple people have control of the investment account, letting them to make trades, deposits and withdrawals, and take other actions related to their investments.

Joint accounts can be an effective and efficient way to pool your money together with your partner.

Here are some of the benefits:

  • They can be a way to work towards saving for a shared goal, such as a down payment on a home.
  • Joint accounts can be easier to manage a single investment account held jointly than to manage multiple accounts for couples or other family members.
  • Costs, such as account maintenance fees, can be reduced
  • Having more assets will give you more investment options

There are also some disadvantages to joint investment accounts, including:

  • Both joint accountholders have full control of the account, so either one can sell off all the brokerage assets and withdraw the money
  • One of the partners may not hold up their end of contributing around the same amount as the other. Joint brokerage accounts work best in situations in which both accountholders contribute roughly equal amounts of money to the account

M1 Finance Has Joint Accounts

If you have a partner or family member or even a trusted friend you are interested in pairing up with for a joint investment account, M1 Finance may be a good choice for you.

M1 Finance offers members:

  • Individual Brokerage Accounts: An account used to buy and sell stocks, bonds, exchange traded funds, and other types of investments.
  • Joint Brokerage Accounts: An account used to establish equal ownership. Joint accounts are used by couples, parents and their children (over 18 years old), and adults caring for aging parents.

M1 requires a minimum of $100 to open an individual or joint brokerage account.

M1’s target customers have longer-term goals for their investments. They can be saving up for a dream vacation, for a down payment on a home, or even to build up a solid emergency fund. They may have had experience with using other traditional online brokerages to invest in stocks and ETFs.

M1 Finance was made for these potential investors as a lower-cost alternative due to its free offerings. They also allow investors to have a large amount of control over the contents of their portfolio.

Webull also does not offer custodial investing accounts.

What Is A Custodial Account?

If you have children that you would like to start setting money aside for, whether it’s for a first car or college expenses, and are looking for a tax-advantageous, easy, low-cost way to do it, you may want to consider a custodial account.

This type of account lets an adult, such as a parent, grandparent, other relative, or family friend invest money on behalf of the child. This means that while the child owns the assets contained in the account, the adult makes all of the investment decisions.

The account must be transferred to the minor when he or she reaches age 18 or 21. Depending on the state in which you live, this age can be up to 25.

There are significant tax benefits that you will want to consider. These accounts let you keep investing money on behalf of a child, without you holding legal ownership of those assets. That is a huge benefit for income tax purposes.

Unearned income in a custodial account will be taxed to the child rather than to the adult overseeing the account. Most children have little or no earned income. This places them in a much lower tax brackets than the adult. This means lower tax bills or even no tax liability at all.

Many of today’s brokerage platforms help adults invest on behalf of the minor and build a diverse portfolio in a wide array of assets, including a combination of stocks, mutual funds, bonds and ETFs.

Firstrade Has Custodial Accounts

However, if you are looking to open a custodial account, Firstrade has a solid option.

Tax Benefits

  • You can contribute up to $15,000 per person annually ($30,000 for married couples filing jointly) with no gift tax incurred.
  • The first $1,050 in earnings is tax-free, the next $1,050 of earnings is taxed at the child's tax rate, and the earnings over $2,100 is taxed at the adult's tax rate.

Flexibility

  • Firstrade's custodial account doesn't have contribution limits, custodian income limits or minimum deposit requirements. You can withdraw the money for any purpose without time restrictions, as long as it is for the benefit of the minor.
  • You can invest in stocks, bonds, mutual funds and ETFs.

About Firstrade

Firstrade provides online and mobile trading of stocks/ETFs, options, mutual funds, fixed income products and more. They offer extended hours trading from 8 am-8 pm and have trading tools with a 0.1 second trade execution guarantee.

The platform offers a well-organized website, user-friendly tools and quality research. Some people in the industry say Firstrade lacks the depth to compete with the larger full-service brokers. That said, investors looking for a low-cost, well balanced, all round easy-to-use broker will find Firstrade a great fit.

Conclusion

There is not a one-size-fits-all account type for today’s investors, and the outstanding online platforms out there are well aware of this fact.

While Webull does not currently offer joint or custodial accounts, there are other suitable options out there.

Article written by Cari Scribner

Platform Reviews

Power Your Investing

Choosing the right product and service is essential for your investing. Here are some of the tools and services to help your portfolio grow.
Robinhood
Robinhood provides an easy-to-use free trading platform for beginner investors. Robinhood has $0 account minimums. Get a free stock when you open an account below.
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M1 Finance offers a free investing platform where users can build portfolios of stocks and ETFs. Users can also choose from a variety of pre-built portfolios offered for free.
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Fundrise
Passively invest in private real estate deals with as little as $10. Fundrise allows you to own residential and commercial real estate across the U.S. starting at a 1% annual fee.
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