Investing early creates a powerful financial advantage. With modern brokerage platforms, new investors—including teenagers using custodial accounts—can start building wealth long before adulthood. One of the most trusted platforms for this purpose is Charles Schwab, a global brokerage firm known for commission-free trading, strong research tools, and beginner-friendly investing features. 

This guide explains how to invest through Charles Schwab, how Schwab brokerage accounts work, and how a young investor can begin investing with confidence using a custodial account. 

Understanding a Charles Schwab Investment Account 

A Charles Schwab investment account is a brokerage account that allows investors to buy and sell financial assets such as: 

The account functions as a financial hub where money is deposited, investments are purchased, and portfolios are managed over time. 

Schwab provides multiple types of investment accounts designed for different needs, including: 

Charles Schwab Individual Brokerage Accounts 

These accounts allow a single investor to manage their own investments independently. 

Joint Brokerage Accounts 

Two individuals share ownership of the investment account, commonly used by partners or family members. 

Custodial Accounts (UGMA/UTMA) 

Designed for minors under age 18, custodial accounts allow a parent or guardian to manage investments on behalf of the child until they reach legal adulthood. 

Retirement Accounts 

These include tax-advantaged options like IRAs designed for long-term retirement savings. 

For young investors, the Charles Schwab custodial account is the starting point, allowing early access to financial markets with supervision from an adult custodian. 

How a Charles Schwab Brokerage Account Works 

A brokerage account at Charles Schwab works as a gateway to financial markets. Investors deposit money into the account, then use that capital to purchase assets. 

The core process operates in five simple steps: 

1. Deposit Funds 

Money is transferred into the brokerage account through: 

Once funds arrive, they appear as available cash in the account. 

2. Research Investments 

Schwab provides powerful research tools that help investors analyze: 

This research allows investors to make informed decisions before purchasing securities. 

3. Place Trades 

Investors can buy or sell assets directly through Schwab’s trading platform. 

Typical trade orders include: 

Schwab offers commission-free trading for stocks and ETFs, which makes frequent investing more accessible for beginners. 

4. Monitor Portfolio Performance 

After purchasing investments, the brokerage dashboard displays: 

Investors can track how each asset contributes to the overall portfolio. 

5. Sell or Reinvest 

Investors can sell assets to realize profits or reinvest dividends and gains into new opportunities. 

Long-term investors typically focus on reinvesting returns to compound wealth over time. 

How to Start Investing with a Charles Schwab Custodial Account 

If an investor is 17 years old, the most common account type is a custodial account managed by a parent or guardian. 

This structure allows minors to begin investing while ensuring adult oversight. 

Step 1: Understand the Custodian’s Role 

The custodian controls the account until the minor reaches adulthood (usually 18 or 21 depending on the state). 

Responsibilities include: