On Fidelity, there may be restrictions on what you can invest in based on your account type and age.
A Fidelity customer recently posted about their experience trying to purchase the QYLD ETF with a youth account.
They received this error message from Fidelity:
(149009) We’re sorry, but your account isn’t eligible for securities that require a Designated Investments Agreement. These include leveraged and inverse ETFs that carry additional risk appropriate for advanced traders.
In other words, the Youth Account has restrictions on specific National Market System (NMS) securities, including shares of real estate investment trusts, convertibles, and leveraged and inverse ETFs.
If you have a Youth Account with Fidelity, these are the things you can buy and sell in your account.
- Most exchange-listed NMS securities, including shares issued by large and small public companies.
- Fidelity mutual funds, including Fidelity ZERO expense ratio mutual funds.
- Fidelity municipal bond funds.
- Fidelity money market mutual funds.
Once you reach the age of 18 and are eligible for a brokerage account, you’ll have fewer restrictions and can begin to explore more advanced investment options.