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Subject:  Re: Brokers, Cribbage, & Mosquitoes Date:  7/5/2006  11:27 PM
Author:  KenAtPcs Number:  17396 of 36785

On this subject, I had an opportunity today to compare the quotes of Vanguard & TDA on the 20-year TIPS.

On the buy side (that was all I looked at), the "hidden" markup was $6 a bond. Adding $5/bond commission ($40 min), that's $11 per $900 bond, or roughly 1.2%.

Vanguard charges $0.75 per $1,000 face value ($40 min, $75 max).

So, for my normal purchase size of roughly 15 bonds, TDA costs me $6/bond extra (about 0.06%). Not too bad, but not that great, either. (Not to mention, the last time I bought some from TDW, it took several hours to get a full, by which time the market had moved quite a bit against me. Coincidence? When I complained, I was told it was a very illiquid market ... but they adjusted the price as a courtesy.)

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