How Do You Buy Corporate Bonds Without Paying Commissions?
Many personal financial advisors recommend that investors maintain a diversified investment portfolio consisting of bonds, stocks and cash in varying percentages, depending upon individual circumstances and objectives. For investors searching for a higher yield than normally available in the government market and bank CDs, corporate bonds offer a better fixed-income choice. We all want to save money when buying a financial asset, but with the exception of US Treasury Bonds, purchasing individual corporate bonds will require paying a commission or fee. Unlike many stocks that can be brought directly from the issuing company thereby evading paying a broker’s commission, most corporate bond offerings are not sold directly to individuals. The following steps are strategies you can used to avoid paying a commission. Step 1 Buy only newly issued bonds. Most new bonds are issued through an investment bank, called an “underwriter,” rather than directly to the public. The bond issuer swallows t
