UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next
Author: junkman02 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35387  
Subject: Re: Zions Direct a Good Choice? Date: 11/7/2009 3:55 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Opps. A couple sentences of the previous got snipped in the posting rocess which I've re-inserted below.

"I'm considering opening an account with subject broker, a wholly owned subsidiary of Zions Bancorporation. Zions Direct has been recommended as a good place to buy bonds; $10.95/trade (plus markup, I'm sure)"[emphasis mine]
--------------------------

Zions (aka, Bonds for Less) doesn't markup, nor does Fido, nor E*trade. You buy at the inside market and pay a commish.

At Scottrade and AmeriTrade, you buy on a "net-yield" basis. In other words, the broker acts as principal, marks up the bonds, and sells them to you without an explicit commission. Depending on the size of the markup, the size of your ticket, etc., one system or the other might be to your advantage.

Yes, Zions Bank is under stress, and their debt is rated as junk (B3/BB+). But pull their financials and dig into the company generally and ask yourself whether it will survive. If the answer is "No", then stay away. If the answer is "Yes", then also consider the account protections that any broker offers its clients and act accordingly.

Best wishes whatever you decide.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Macro Economics

Ringing the NASDAQ Bell
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement