Superhero launches trading accounts for minors.
Award-winning share trading platform Superhero has today launched accounts for minors, enabling parents, aunts, uncles and grandparents to make investments on behalf of a child or teenager aged under 18.
Since launching ASX trading accounts in 2020, Superhero says it has had strong demand from parents who want to be able to set up an account in the name of their child.
“Parents, and a growing number of grandparents, want to be able to invest for their child or grandchild’s future – whether that is money towards education, travel, their first car or even making a start on a home deposit,” Superhero co-founder and CEO John Winters said today.
Traditionally, thousands of parents and guardians have invested regular savings into bank accounts on behalf of minors.
But Superhero says with interest rates at record lows, there’s less opportunity for compound interest to grow those savings.
For example, if you invested $2,000 in a savings account when your child was born, and then $100 a month for 18 years, with an average of 3% compound interest calculated monthly, that would equate to $32,024 when your child was 18.
If you invested $2000 in shares when your child was born, and then invested a further $100 a month for 18 years, with an average return of 8%, that would equate to $56,730 when your child was 18.
“The difference between having money in a savings account or investing in markets is pretty stark, and as your child gets older, it’s also a good opportunity to teach them about investing and have conversations with them about managing risk and diversification, which will help them become financially literate,” Mr Winters said.
Minor accounts are now available to all individual Superhero account holders and are free to set up. Upon setup, each minor account will receive a unique PayID for instant cash deposits as well as a unique BSB and account number.
“This move enables parents to open accounts on their kids behalf, fund their account in real time, set up regular deposits into their account and buy Aussie ETFs for $0 brokerage or shares for just $5 per trade.”
Superhero is an online share trading platform that aims to make investing accessible, understandable and affordable for all Australians.
Superhero’s ASX trading platform went live in September 2020, and by April 2021 had already won two Mozo Awards, for best low-cost ASX and ETF trading platform.
Notes to editors
The comparison between investing in a savings account and investing them in shares provided in the statement above was based on the assumptions outlined in the example.
Superhero does not provide financial advice that takes into consideration personal objectives, financial situation or particular needs. All investments carry risk, and past performance is not indicative of future performance.
About accounts for minors
In Australia it is a legal requirement to be 18 years or over in order to make investments. Customers that open a Superhero Account on behalf of a minor under the age of 18, will have the account opened in their name, with a designation containing the minor’s name. Only the adult will have access to the account and is legally responsible for the operation of the account and for complying with Superhero’s Terms and Conditions.