Investing, Life

Investing for Kids – Top FAQs

To help you start investing for your kids we’ve covered the most common questions we get asked.

We’ve answered the most common questions we get asked on Investing for Kids.

  1. How do I set-up a kids account?
  2. What account types are there for kids accounts?
  3. Can I have multiple kids accounts?
  4. Is the account in my name or my kids?
  5. How are the investments taxed?
  6. What happens when they turn 18?
  7. What’s the minimum to start investing?
  8. Can I top-up the portfolio?
  9. What’s in the portfolios?
  10. What investment strategy is right for my kids?
  11. What are the fees?
  12. Are there any exit fees?
  13. Can I access the funds any time?
  14. Is there a lock-in period?
  15. Is Stockspot Safe?
  16. Is Stockspot an Investment Bond?
  17. I have more than 1 child, should I create multiple accounts?
  18. How can I contact Stockspot?

1. How do I set-up a kids account?

Head to the Stockspot homepage to start your application.

Select account type ‘Investing for a minor’ then step through the questions to get your portfolio recommendation and complete the online application process. It should only take a few minutes. 

Once your application is complete, we’ll review it and set-up your account (usually within 1 business day). We’ll email you cash account details then you can deposit funds for investment whenever you’re ready. 

2. What account types are there for kids accounts?

You can open a kids account as an individual, in joint names or as a Trust.  

3. Can I have multiple kids accounts?

Yes. Just complete a new application for each kids account via the Stockspot homepage. 

You’ll need a different email address for each account as it’s used as the unique login ID. 

We can help you to link the accounts once they’re set-up. Just email us to request it. 

4. Is the account in my name or my kids?

Kids accounts must be in the name of an adult (usually mum, dad or grandparent) on behalf of the child or Family Trust as children can’t legally own investments in their own name until they turn 18 years of age.

We offer two options for parents or relatives to invest for children:

a) You can invest as an individual client. The investments are held in your name from a legal and tax perspective, but we can add your child’s name to the account which acts as an identifier. 

b) You can invest on behalf of a child if you are a trustee of a Family Trust or Discretionary Trust and your child is a beneficiary. From a legal and tax perspective the assets are held by the Trust.

5. How are the investments taxed?

Any income or capital gains (losses) from a part of the primary accounts holder’s assessable income..

Before investing on behalf of your child you should speak to a tax adviser or accountant to be aware of the legal and tax consequences.

6. What happens when they turn 18?

You have the option to transfer the investments to your child so they become the new legal owner or you can sell down and repurchase the investments in their name. There may be transfer costs and capital gains tax implications at this time so it’s worth speaking to your tax adviser or accountant first.

7. What’s the minimum to start investing?

$2,000

8. Can I top-up the portfolio?

You can top-up your portfolio anytime by setting-up a regular transfer from your external bank account to your Stockspot cash account. 

Funds are automatically invested each time there’s $1,000 in your cash account (for portfolios less than $50,000) and $2,000 (for portfolios above $50,000). 

For example if you were topping-up with $200 per month, the funds will be invested automatically around every 5 months.

9. What’s in the portfolios?

The portfolios include a mix of growth investments (Australians and global shares) and defensive investments (bonds and gold) to grow and protect your money along the way. 

We use index tracking Exchange Traded Funds (ETFs) in the portfolios, providing instant diversification for a very low cost. 

For portfolios less than $10,000 we phase in the ETFs gradually to optimise the level of risk versus return for smaller account balances. 

10. What investment strategy is right for my kids?

You’ll be recommended a strategy that best suits your investment time horizon and comfort with risk. 

Typically we recommend a growth strategy given the long investment time horizon for kids investment accounts. 

11. What are the fees?

Kids invest for free up to $10,000 or until the child turns 18. Then normal Stockspot fees apply.

Stockspot fees are all inclusive. There are no extras or hidden costs.

12. Are there any exit fees?

No. We don’t charge any brokerage, exit fees or transaction fees.

13. Can I access the funds any time?

Yes. You withdraw anytime from your Stockspot dashboard. We will transfer the funds to your linked bank account. The process takes 4-5 business days.

14. Is there a lock-in period?

No. Although investing should be for the long term for the best results, you can access your funds any time.

15. Is Stockspot Safe?

You are the legal and beneficial owner of your investments.  In the unlikely event something happens to Stockspot, you have the option to transfer your holdings to another provider.

You can read more about how Stockspot keeps your money safe.

16. Is Stockspot an Investment Bond?

No. We don’t recommend investment bonds since they tend to have high fees and poor long term returns. . Lean more about  Stockspot compared to an Investment Bond.

17. I have more than 1 child, should I create multiple accounts?

For parents with more than 1 child, there are two 2 options:

1) create 1 account and we can add both your children as unique identifiers

2) create 2 separate accounts (1 for each of your children)

You’ll need a different email address for each account as it’s used as the unique login identifier. 

We can help you to link the accounts once they’re set-up. Just email us to request it.

18. How can I contact Stockspot?

You can reach our local team by phone, email or live chat. Our Contact Us page has all the information you need. 


Still have questions?
If you still have questions, don’t forget to visit our comprehensive list of FAQs


Advice & Client Care

Sarah has over 13 years experience in the financial services sector. She has spent most of her career working in financial advisory, operations and administrative roles. She holds a B.Business/BA International Studies and Graduate Diploma in Financial Planning.

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