TRADING TIPS

How Much Does it Cost to Trade Bonds

Hubert Senters here. Here are some commonly asked questions that we receive about trading bonds. Number one is how much does it cost to trade bonds? Well, there’s a lot of different bond markets. There’s a 30 year bond, the 10 year note, the 5 year note, the 10 year note. And there is the bund. So in most cases it’s going to cost you $5 or less to trade them per commission. So you need to call your broker depending on who your broker is. I mean you could be using trade station. You could be using an infinity. You could be using toss. You could using Interactive Brokers. you could be using fidelity. You could be using Schwab. They’re all different. They’re going to quote you different prices. But on average the retail commission for a bond trading is plus or minus a couple dollars above or below $5. So in other words, let’s say it’s $5 to trade one bond. So it would be $2.50 to put on the trade and then $2.50 to take off the trade. So $5 round trip. Some are going to be a little bit more expensive than that. Some are going to be a little bit cheaper than that but that’s the general cost to trade one bond contract in either the 30, the 5, the 10, the 2 or the bund. The bund is a little different. It’s quoted in euros. So it’s a little bit different structure. But that is the answer to that question. Good luck. Hope it helps. I’ll see you on the webinar. Hubert.  

1 Comment

  1. Albert Masih

    Nice

    Reply

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