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Can you trade options under 18?

No, not in your own name. Brokers only open options accounts for adults. Until then, you can learn, practise on paper, and own plain stocks or funds through an adult's custodial account.

Beginner guide · 6-minute read · Updated 2026-10-28

The short answer

No. In the US and Canada, you have to be a legal adult under your state's or province's law to open your own brokerage account. That's 18 in most US states, with a few exceptions. In Canada it's 18 or 19, depending on the province. Options need that account plus an extra approval, so they wait too.

A parent can open a custodial account for you. But many brokers don't allow options in custodial accounts at all. Check the broker's custodial account page for its current rule.

That's not the end of the road. The years before 18 are a good time to learn the part most people skip: what a losing trade looks like.

Why brokers say no

• An account is a contract. An options account is a legal agreement. A minor generally can't sign one that holds up.
• Options can cost more than they look. Selling a put can mean buying 100 shares. A broker has to know the client can carry that.
• The approval form is about you. Before a broker grants an Options approval level, it asks about your income, savings, experience and goals. That check is built for adults.

What about a custodial account?

A custodial account holds money that belongs to you, but an adult runs it, usually a parent. In the US these are often called UGMA or UTMA accounts. The adult places the trades. The money passes to you at an age set by state law.

They're good for owning stocks and Index funds for the long run. Options, margin and other trades that can lose more than the account holds are often not allowed. Some brokers also offer teen accounts with a parent linked. If you look at one, check whether options are on the list. Expect a no.

What you can do right now

1. Learn the two basic trades. A Covered call means selling the right to buy shares you own. A Cash-secured put means getting paid to promise to buy shares at a set price. Start with options trading basics, then the wheel strategy, which puts the two together.
2. Paper trade. Paper trading means tracking pretend trades with real prices. A notebook or a spreadsheet is enough.
3. Own something real, if a parent agrees. A broad index fund in a custodial account teaches you what it feels like when your money goes down.
4. Keep a journal. For every paper trade, write why you took it, what happened and what you'd change.
5. Learn the loss side first. Read what to do when it goes wrong before you ever need it: what to do after losing money in stocks.

A paper trade to try (hypothetical)

All numbers are made up. This is an illustration, not a trade idea.

On paper, you "sell" one 30-day put on a made-up stock, XYZ, trading at $22. The strike is $20 and the premium is $0.50. That's $50 collected. You'd need $2,000 set aside to buy the shares if assigned.

Look at the last row. The most you can make is $50. A bad month costs fifteen times that. That's the real lesson, and paper is the cheapest place to learn it.

Run ten paper trades like this one. Write down each result, the losing ones too. If you'd have quit after the first −$750, you know something about yourself before any real money is on the line.

Getting ready for 18

• Save the cash first. A put on a $20 stock needs $2,000 set aside. A covered call needs 100 shares. Small accounts can only do a little, and that's fine.
• Answer the approval form truthfully. It asks how long you've traded and how often. Paper trades usually aren't real trading experience, so don't count them as if they were. See how to fill out an options application.
• Ask for the lowest level you need. Covered calls and cash-secured puts usually sit at the first levels. If you're turned down at first, read why an options application gets denied.
• In Canada, TFSA room starts adding up the year you turn 18. If adulthood in your province starts at 19, you open the TFSA at 19, and the room from 18 carries over. Check the CRA's TFSA page for the current rule (as of October 2026). Covered calls are widely allowed in a TFSA. Cash-secured puts depend on the broker's options permissions.
• Decide how many stocks you'll hold. Options tie up 100 shares at a time, so they bunch your money into a few names. Read how many stocks a beginner should own.

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