How old do you need to be to sign up for a trading account?

One might think choosing a trading broker is a daunting task, but it’s not. With so many trading broker options available, you can quickly choose one by knowing your requirements. 

But do you know the minimum age requirement for starting a demo account? And how can one trade if they don’t meet the minimum age criteria? 

Read on to know everything.

Minimum age criteria for opening a trading account

Opening an account and trading with a broker is not difficult. In fact, many technology-savvy youngsters know how the trading market works. At the same time, other kids have seen their parents trade from home. 

Anyone who wishes to enter the trading market simply needs to go online. But each trading account comes with an age requirement. The age criteria restrict minors from entering the market because they don’t properly understand the market. So, if they make a trade, they are likely to lose.

An age to open a broker account

Technically, opening a free demo account is not difficult. Plus, you don’t need to make a minimum deposit to get access to the demo account. But many trading platforms strictly follow the age criteria to stop minors from accessing their demo trading account. 

Even if you create a demo account, you must submit your identity with your name, age, and other details. If a trader’s age in their identity does not meet the criteria, the broker rejects the process. 

In most countries, the minimum age to open a trading account is 18 years. But certain countries do not allow individuals to start trading unless they don’t turn 21. However, parents can open a trading account on their kid’s behalf. 

Individuals above 18 are believed to develop a better understanding of the trading market. Also, they can create better strategies, which increases their chances of winning a trade.

Trade more than 3,000+ markets from 0.0 pips spread without commissions and professional platforms:

(Risk warning: 78.1% of retail CFD accounts lose money)

Other eligibility for opening a trading account

Besides age, you must also fulfill other criteria to open a trading account.

PAN and KYC details

If you are an Indian citizen willing to start a trading account, you must submit a copy of your PAN card. In addition, submit KYC documents as well. But if you are a citizen of another country, you must submit the relevant documents.

Other documents

You need to provide other documents as well for proof of your identification and address. In addition, attach your latest photographs. 

For verification, you need real documents, but for submission, you need photocopies of your document:

• Proof of Identification (POI): For proof of your identification, you can submit your passport, driver’s license, voter’s ID, PAN card, telephone bills, or electricity bill
• Proof of Address (POA): For proof of your address, submit a driver’s license, ration cards, voter ID, passport, bank statement, bank passbook, or copy of your residential electricity bill

Minor trading account

While a trading account has an age eligibility criteria of 18 years, it’s possible to open a minor trading account. It’s similar to a regular account, but minors cannot trade through this account.

Limitations of minor trading account

Minor trading account does not have an age limitation but has some other limitations. First, minors cannot themselves operate their trading account. A parent’s or guardian’s documents are needed to open a minor trading account. 

Second, you can use a minor account only for trading in equity delivery. This trading account is not eligible for trading intraday or equity derivatives. Lastly, a minor account is not eligible to be linked with an online trading account.

Trade more than 3,000+ markets from 0.0 pips spread without commissions and professional platforms:

(Risk warning: 78.1% of retail CFD accounts lose money)

What happens to a minor account when a minor turns major?

Once a minor turns major, i.e., attains 18 years of age, the trading account is no longer valid. The account holder needs to submit a new trading account opening application with the required documents. 

For this account, the holder doesn’t need a parent’s or guardian’s signature. The remaining shares from the minor account will be transferred to the new account.

Benefits of minor trading account

The minor trading account offers the following advantages:

• Better financial planning: Equity stocks and mutual funds offer better returns than any other investment instrument. Through a minor trading account, parents can properly plan their kid’s finances, which can further be used for the kid’s higher education, wedding, or more
• Encourages financial literacy: With a minor trading account, children get familiar with the world of trading and financial independence. It helps them to develop the necessary skills

Conclusion about minimum age criteria for opening a trading account

As you know the minimum age for opening a trading account, you can make the right decision. For individuals below age 18, a minor trading account seems to be the best option. Once they turn major, they can open a new trading account.

Trade more than 3,000+ markets from 0.0 pips spread without commissions and professional platforms:

(Risk warning: 78.1% of retail CFD accounts lose money)

Last Updated on June 4, 2023 by Yuriy Kunets