Where to Buy Corporate Bonds
- 1). Invest through a brokerage house like Prudential or Chicago Investment Group. You can use the knowledge of an experienced broker to help you buy corporate bonds. This is the best option for beginners who often stumble when investing in bonds before becoming successful. Find a brokerage house that regularly handles corporate bond trades for the best results.
- 2). Use an online broker that allows users to educate themselves in corporate bond markets and trading while making the trades at any time day or night. Online broker fees are usually much more affordable than those in a brokerage house are. E-Trades, Scott Trades and others allow users to trade on their own time and at their own pace. However, users find themselves purchasing without the expertise of a big brokerage house, often to their own detriment.
- 3). Look to the New York Stock Exchange (NYSE) for corporate bonds to purchase. They are listed in most newspapers, several magazines and online at the NYSE's website. The site offers information on the bond's history, which is essential in making a purchase decision. The NYSE offers auction twice a day where buyers can snag bonds at a discount. Many investors use the NYSE information as a research tool, but do their trades with a trusted broker either online or off.
- 4). Contact your bank, mutual fund or 401K provider. Many of the major banking firms also offer services that allow their clients to trade bonds. You can also request a corporate bond as a part of your 401K or mutual fund portfolio. Merrill Lynch is one company that allows customers to include corporate bonds among their 401K investments. Customers can also buy corporate bonds through Merrill Lynch independent of retirement or savings accounts. Similar to a brokerage house, banking firms lend their expertise to customers to make bond trades more successful. Some offer clients the option of self-controlled trades or trades made through a representative of the client employed by the firm.
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