No. of Recommendations: 0

You seem to have a lot of experience in bond investing. This is a very simplistic question, but how does a small investor buy bonds as opposed to bond funds? Do you go through a regular discount broker? Or are there brokers who do only bonds?


I'm not Crosenfeld, but I might be able to answer your question. Several of your big-name discount brokers offer individual bonds for small investors. E-trade is one I'm most familiar with.

Another alternative to comsider is a "bond" unit trust. This kind of unit trust is simply a collection of 5 or 10 different bonds which are bundled together. It's somewhat like a mutual fund, except you know which bonds you're invested in and you have a fixed maturity date. Your investment value will fluctuate with interest rates during the period you're invested. But you'll get your principal at maturity. Unit trusts are typically offered at full-service brokers and do charge commission. Check out these sites for more information: &

Print the post  


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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.