Cheapest place to get Corporate bonds?

Discussion in 'Retail Brokers' started by peilthetraveler, Aug 26, 2008.

  1. Whats the best way to buy Corporate bonds? Im with scottrade and they charge 35 bucks + 3 dollars per bond (terrible price if you are buying for short term. E-Trade is much cheaper (1 dollar per bond, min 10$ order) BUT E-Trade has an account service fee of 40 dollars every 3 months if you arent doing anything, so I dont want that. Any way to buy a corporate bond on the secondary market withouth giving up 50% of the yield on one of my bonds by paying huge commissions or huge markups/markdowns?
  2. Schwab is also 1 dollar per bond, minimum $10 order, maximum $250 order. AFAIK Schwab has no inactive account fees.

    IB is 1 dollar per bond, min $1 order. They will charge you $10 a month data fee if you don't pay $30 in commissions.
  3. ..what size are you buying? if you buying 100 or so at a time you could probably open an account with a local B/D and get better prices...e*trade doesn't have a bond desk do they

  4. Thanks. Looks like Schwab is the way to go for me.

    BTW, I never seen anyone use AFAIK before and I thought that the name of the brokerage was "AFAIK Schwab" lol I thought maybe it was a subdivision or something of Schwab that dealt only with bonds...then i finally Googled AFAIK and found out it means "As Far As I Know" hehe
  5. most of their traders would be under the desk
  6. IMHO is helps to learn net speak. Time to get educated before you get pwned. :)

    <translated> I guess I should learn as much Netspeak as possible as soon as possible.
  8. bawr


    Fidelity is an option too. No account fees. Higher sweep account interest than Schwab. $1/bond, $8 min. per order, $250 max., $50 max per trade for bonds with less than one year maturity.