If you want to gift a child with stocks or cryptocurrency, Stockpile may be the platform for you. Stockpile allows you to purchase gift cards redeemable for stocks or crypto and set up custodial accounts for a minor, making it easy to spark their interest in the financial world.
Of course, anyone can still invest with Stockpile, but with this stripped-down app you only get to see the basics. If you want to stock or cryptocurrency, Stockpile is an easy win, although users should note that holding assets here requires an ongoing monthly or annual subscription. So while you can give a gift that keeps on giving, the recipient will have to continue paying to access that gift after the 30-day free trial expires.
Stockpile does offer the basics, including some educational elements, but those looking for a little more may need to switch to another investor-friendly broker like Fidelity Investments or Charles Schwab, both of which also offer custodial accounts.
Best for
- Donating shares
- Introducing younger family members to investing
- Ease of trading
Stock at a glance
| Category | stock |
|---|---|
| Minimum balance: | $0 |
| Marketable securities: | Stocks, ETFs and Cryptocurrency |
| Cost per transaction: | No fees for trading or purchasing gift cards. No debit card fees. Cryptocurrency has a spread markup of 1-2 percent included in prices. |
| Customer service: | Via email |
| Account fees: | $4.95 per month or $50 annual account fee; $75 transfer fee; $5 quarterly inactivity fee on accounts with less than $20 and inactive for more than 90 days. |
| Mobile phone application: | The Stockpile mobile app is available on the Apple App Store and Google Play Store |
| Promotion: | No |
Pros: Where Stockpile stands out
Easy to donate stocks and cryptocurrency
Stockpile’s biggest draw is its ability to give stock, and you can literally charge stock – or at least a stock gift card – to your debit card. You can purchase e-gift cards that can be loaded with values from $1 to $200. There are no additional fees for purchasing stock gift cards, and the recipient pays nothing to redeem the gift card. More recently, Stockpile added the ability to give digital gifts in the form of cryptocurrency.
For physical cards, options include a branded gift card (for example, to buy Apple or Disney stock) or a non-branded gift card. Any way you look at it, the recipient can buy the shares he or she wants – you don’t have to worry about getting the wrong gift. Your recipient can redeem the gift card on Stockpile by creating an account (fee applies) and purchasing a stock or shares. Then they are a legitimate shareholder.
And if you’re giving stocks to a child, Stockpile can be a great way to teach him or her about investing and why it’s valuable to own stocks.
Fractional shares
Stockpile’s gift cards and regular brokerage offerings allow you to purchase fractional shares of stock. So you don’t have to put enough credit on a card to buy a full share, which can sometimes run into the hundreds of dollars. Even if you give a $50 card, the entire amount will be used to purchase shares, whether that’s a full share or less than one.
And if you use Stockpile as your go-to broker, you can enjoy the same benefit. It’s a good way to make sure all your money is working for you in the market.
Easy to set up and trade
Although it focuses on gift cards, Stockpile allows anyone to sign up for an account and trade stocks. So if you want to use Stockpile as your broker, its user-friendly interface makes that a snap. Transactions are free and you can use a debit card to finance the transaction at no extra cost.
It’s surprisingly easy to set up your Stockpile account and get started. After a standard sign-up process that asks for your personal information, you will be asked to link your bank account. From there, you’ll be taken to a dashboard with a few options: buy stock, link a bank account, and set up direct deposit. A few links on the side let you redeem gift cards, invite friends and more.
The mobile app largely mimics the same process, and the clean layout makes it so easy to navigate. You can quickly create a watchlist, search available securities, read through the educational sections, and purchase gift cards. It’s super intuitive to use and explore.
To place a trade, click ‘buy shares’, search through the available shares and click on the corresponding icon. An information page will then appear with some of the key details of the stock, such as charts, financial information, a news feed with recent articles and a short company profile. Click through that and then you will be asked to select the dollar value of your transaction. Click “checkout” and your transaction is complete. Almost.
Stockpile does not buy (or sell) your shares directly when you place the order, like a traditional broker would. Instead, it places all orders at once on market day to reduce costs. So you cannot set your trading price and you take the offered price when the trade is executed.
Nevertheless, it is surprisingly easy to create an account and trade with Stockpile, and kids just starting out should have no problem finding what they want and buying it.
Access to custodial accounts
For some agents, a custodial account is an afterthought, if they even think about it. But access to custodial accounts is a defining feature of Stockpile. A custodial account allows a parent or guardian to own shares on behalf of a child until the child reaches adulthood. It’s a convenient and quick way to let a child recipient create an account and have the shares legally registered in his or her name. Ideally, the account will get them interested in investing.
Stock selection
Often with these types of niche services you are locked into a limited number of stocks, which may prevent you from purchasing the newest stocks. But Stockpile offers thousands of stocks and ETFs, so you’ll likely find what you’re looking for. You can quickly browse the list of stocks and ETFs offered, or search by company name, stock ticker symbol, or industry sector.
Even if you don’t find any stock at first, you can request to add it to the list of available stocks. So even those new hot tech stocks will likely be available. However, Stockpile does not include stocks trading under $3, penny stocks and other more obscure offerings.
Stockpile also offers more than 30 cryptocurrencies, including the most popular ones like Bitcoin and Ethereum. It promises more will be added over time.
Cons: Where Stockpile could improve
Subscription fee
In recent years, Stockpile has changed its business model, from a broker that paid you when you trade (or via gift cards) to a broker that charges a monthly or annual subscription. That shift occurred as the entire industry moved to a no-commission model for transactions. But Stockpile has to pay the bills, and it does so by charging a monthly or annual subscription for its services.
How much does that get you? Stockpile charges a monthly fee of $4.95 or an annual fee of $50. Once your gift card recipient places a stock order, he or she will receive one month of free Stockpile, but after that they must continue the subscription. Alternatively, Stockpile allows you to purchase a gift card with a one-, two- or three-year subscription, which includes a $5, $20 or $50 bonus credit depending on the subscription length. That releases your recipient from the obligation to pay any additional amount to keep the gift you give them.
In a world where the best online brokers don’t charge activity or subscription fees, while still offering custodial accounts, is that subscription worth it? You’ll have to decide.
Limited account types
Stockpile only offers two types of accounts: individual taxable accounts and taxable custodial accounts. Since Stockpile focuses on giving stocks to beginners, that’s probably not a downside. But investors who want to open other accounts (such as IRAs) don’t have any options here.
Almost every other major brokerage offers this and many other account types.
Limited functionality
The good news is that it’s actually easy to buy stocks (or ETFs or crypto) on Stockpile, and you can virtually point and click to a trade in any dollar amount, as described above. The downside of that convenience comes at the expense of functionality and refinement. Things you won’t find at Stockpile include:
- Any other security besides stocks, ETFs and cryptocurrency (such as options)
-
Limit orders or another order type
- A trading platform
- Everything more than basic educational elements
So you can easily make a trade here, but you may find other options like Robinhood just as easy without all the drawbacks. Again, Stockpile is aimed at beginners and that is reflected time and time again in the offering here.
Lack of features and tools
Stockpile is a fun way to help kids pay attention to investing. The site’s clean layout and mobile app make it easy to navigate and otherwise use. The educational components of the app provide basic lessons on investing, but are still useful.
While these resources may be sufficient for a child, adult investors looking for more robust education and other tools will have to look elsewhere. Fidelity Investments and Charles Schwab are both exemplary in their educational features and Merrill Edge also offers an excellent educational package.
In short
Stockpile is focused on a specific niche and tries to target that subgroup almost exclusively, so it doesn’t offer the same functionality as a typical online broker. Still, the app will likely provide what you (or your child) need, especially if you’re just starting an investing journey or are trying to teach the value of investing.
But for almost everyone else, especially those looking to boost their investments in the short term or those looking for retirement account options, Stockpile won’t cut it. Good alternatives are Schwab and Fidelity if you are looking for a “do it all” broker. Meanwhile, Robinhood is a solid choice because of its easy-to-use mobile trading app. All three of these brokers also have no monthly subscription fees, another feature you won’t find with Stockpile.
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