Stockpile is a platform that allows kids and teenagers to open a custodial account and invest in the stock market.

Its main benefit is that it enables you to view, track, and control your investments with a login separate from your custodian (the parent or guardian you made the account with). Although you still need approval from your custodian to make trades, you have way more control over your investments than you would with any other custodial account. 

In this post, I will help you understand Stockpile works and share my experience with it. 

Pros

• Separate log in
• Simple interface 
• Fractional shares
• Gift cards
• No trading fees

Separate log in

Stockpile’s greatest advantage is that it gives the beneficiary of the custodial account (minor) to make trades from a separate login from the adult. 

In all the research I’ve done, Stockpile is the only brokerage that allows this. Most other brokerages’ custodial accounts are set up so that the custodian (one of your parents) puts in money and decides what stocks to invest in. If you want, you can talk to them about those decisions. But Stockpile allows you to easily invest your own money and make your own investment decisions (with your parent’s approval).  

With Stockpile, you can connect your bank account (or use your parent’s account and pay them back in cash) and then, through the app or website, decide what stocks to purchase and when. Even though your custodian will still need to press “approve” when you choose to buy or sell a stock, Stockpile gives you almost complete autonomy over your money, which is what sets Stockpile apart.

Interface 

Stockpile has a simple interface and is easy to use and understand. However, it only shows updated stock prices every 15 minutes, so you won’t be able to check the exact value of your stocks. But this really should be such a big deal for most people. 

Stockpile’s interface is easy to understand but is also quite simplistic. If you want advanced real-time data, price information, and analysis tools, Stockpile may not be the best brokerage for you. 

Fractional shares

Unlike most brokerages, Stockpile offers fractional shares, which means you can buy a fraction of a share rather than purchasing a full share. For example, as I’m writing this, Alphabet (Google) has a share price of $2000, which is WAY more than most teenagers can afford. With fractional shares, you can set precisely how much money you want to invest in any company, and Stockpile would give you a proportionate fraction of a share.

Gift cards

Stockpile offers the unique feature of gift cards that act as credits to buy stock. For a holiday or maybe your birthday, you can ask for a gift card as a present and redeem them to grow your portfolio. This is a feature completely unique to Stockpile. 

Trading fees

Recently, Stockpile eliminated its 99¢ trading fees. This is really great news that makes Stockpile a much more attractive brokerage to invest with. 

Previously, Stockpile had a fee of 99¢ per trade to buy or sell stocks. While this fee may not sound like a lot, depending on how much you invest, this could start to add up.

In addition to the obvious benefit of not having to pay to invest, this also shows that Stockpile is improving over time and that some of its other drawbacks may be fixed in the future. 

Cons

• Trade execution
• Limited choices 
• Transfer fee

Trade execution  

My least favorite thing about Stockpile is how they execute trades. If I placed a purchase order on Aug 11th at 10:00 am, the stock wouldn’t show up in my account until approximately an hour after the market closed and would be purchased at the closing price. This means you have less control over the exact time and price your trade goes through than you would with other brokerages where your order would be fulfilled immediately. 

Stockpiles trade execution also means that you can’t place limit orders. (orders that are executed when a stock reaches a set price). 

This may sound like a big drawback, but prices don’t really change that much in the couple of hours before the market close. So unless you’re planning to day trade, this shouldn’t be that big of a problem.

Limited options 

While Stockpile does offer large companies and ETFs, Stockpile doesn’t offer very many small companies and offers no company with a share price under $3.

However, in my experience, Stockpile offers almost any stock I’ve wanted, and a lack of options hasn’t been a problem for me. But if you want to invest in penny stocks, Stockpile probably wouldn’t be a great brokerage for you.

Transfer fee

Stockpile has a brokerage transfer fee of $75. If you transfer to another brokerage because you decide you don’t like Stockpile or become an adult and no longer need a custodial account, you will have to pay a $75 transfer fee. Otherwise, you can sell all of the stock in your account and repurchase stock in a different brokerage, in which case you might have to pay taxes on the profits.  

While this transfer fee isn’t the end of the world by any means, it is still something to consider.

How it compares 

Compared to custodial accounts offered by large banks, Stockpile is limited in its abilities, not allowing you to buy every stock, place limit orders, and only executing trades at market close. 

But unlike most large banks, it allows you to make your own account, be more involved in the investing process, and make your own decisions in a unique way that you can’t find anywhere else. Additionally, it offer fractional shares, which is a significant benefit if you don’t have a lot of money to invest. 

My experience with Stockpile

Stockpile was the first platform I ever used to trade stocks. After receiving a $25 gift card to buy a stock, my dad and I spent approximately 30 minutes setting up an account. The next day, after doing some research, I decided what to buy and placed an order. Then my dad received an email and approved my purchase. My trade was executed that afternoon when the market closed. The next day I woke up, opened my laptop, and logged into my account to monitor how my investment was doing. Overall, the experience was straightforward and enjoyable.

Around a year later, I decided to switch to Charles Schwab because of Stockpiles trading fees and imprecise execution. Even though Charles Schwab didn’t have these problems, I also didn’t have a separate login, meaning I couldn’t check on my investments or make trades whenever I wanted. After six months at Charles Schwab, I switched back to Stockpile to regain the freedom and control it gave me. 

Recently I started using M1 finance’s new custodial account in addition to Stockpile.

For parents 

For any parents reading this, I want to emphasize how great Stockpile can be for kids and teenagers. I personally probably wouldn’t have started investing until I was a lot older if I hadn’t been given that Stockpile gift card. 

In my mind, it was free money. I could either do nothing with it, or cash it in for real money. So even though I knew I could sell the stock immediately after buying it and cash out, it motivated me to learn about investing and sparked an interest in me. 

Once your child sees the money growing, they probably won’t be so soon to sell it, knowing they could sell it for more in the future.

Conclusion 

While Stockpile isn’t the best brokerage in general, it does provide an excellent place to start for teens who want to invest. Their simple design, separate login, and fractional shares create an enjoyable investing experience with a low entry barrier. However, Stockpile only executes trades at the end of the day, giving you less control over your buy and sell prices. 

The takeaways

Stockpile:

1. allows kids and teenagers to invest in the stock market
2. gives you a separate login as a kid/teen
3. has a simple interface
4. allows you to purchase fractional shares
5. has gift cards that you can redeem to buy stock
6. has a 99¢ trading fee
7. executes your orders at market close
8. doesn’t offer companies with a share price under $3
9. has a $75 fee if you transfer your stock to another brokerage
10. is easy to set up

Even though I am not a financial advisor or finance expert, hopefully, this review helps you understand Stockpile and decide which brokerage to use!