When it comes to investing in bonds, you’ll need to find the right broker to help you. You’ll want to choose a reputable broker with experience in this field, and one who has good credentials. In addition to experience and credentials, you’ll want to make sure that the broker is licensed and registered. These things will ensure that the broker is the best option for your needs. And remember, you should always consult a bonds broker before investing any money.
When selecting a broker, consider their commission structure. Most brokers make money from a percentage of the markup or markdown that dealers pay them. Some charge a flat fee based on the size of the account and trading activity. It’s normal to have questions, so make sure your broker is knowledgeable and can explain the relationship between transaction costs. Depending on how much you’re willing to spend on services, you may be able to negotiate a lower rate with your bond broker.
Commission structure: Bond brokers receive a portion of the dealer’s markup or markdown for bonds they purchase and sell. Some charge a flat fee based on the size of your account and the activity that you have. Most brokers expect experienced investors to ask questions about prices and their relationships between these costs. However, you should still shop around for the best deal by negotiating commissions. If you feel that the commission structure is too high, try to find a different broker.