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Buying Bonds Online


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Tools to Help With Buying Bonds Online

Buying Bonds OnlineInvestors may not realize that there are many tools that can help them with buying bonds online.  Many online brokers offer plentiful information about buying bonds online and allow bonds to be purchased online through their websites, which has made the process of buying bonds online relatively simple and affordable.

For example, TD Ameritrade provides the following powerful tools to assist investors with buying bonds online by helping investors find fixed income bond products that meet their specific bond investing criteria.

  • Bond Wizard — Investors answer five simple questions using Bond Wizard to find bonds suited to an investor’s specific investment goals.
  • Bond Ladder Tool — Investors can use the Bond Ladder Tool to build a bond ladder based on an investor’s specific goals and criteria.  A Bond Ladder is a portfolio of bonds in which each bond has a different maturity date to allow the bond investor to space out future bond investments to take advantages of changes in interest-rates and provide liquidity.
  • Ready-Made Ladders — Ready-Made Ladders are pre-designed bond ladders that are provided by online brokers that include bonds in a specified maturity range and quantity that an investor can select.
  • Advanced Search Function — Specific bonds can be found via an Advanced Search Function that can look up bonds by name or CUSIP (Committee on Uniform Securities Identification Procedures) number, which is a unique identifying number associated with each bond.

Buying Bonds Online Is Easy

Prior to making an investment in bonds, proper due diligence is required to determine if a bond investment is suitable.  The Internet has made obtaining current and accurate information about bonds readily accessible to all investors interested in investing in bonds.  A number of websites on the Internet offer free investment advice and information regarding buying bonds online, including www.bondsonline.com and investinginbonds.com.  A great amount of information about bonds can be found on these websites, including bond ratings, bond maturity dates, bond interest rates, and general bond investing advice.

With many online brokers, buying bonds online is as easy as buying stocks online.  The bond purchase order is entered online by an investor in a similar manner as a stock purchase order is entered.  Upon acceptance by the online broker, the order to buy bonds online is executed by the online broker.  The bonds are then held in the investor’s brokerage account, unless delivery of the bonds is requested.

United States Treasury Bonds (government bonds) can be purchased online directly from the United States Bureau of the Public Debt at their website (www.savingsbonds.gov or www.treasurydirect.gov).  A wide variety of United States Treasury Bonds with various maturity dates and interest rates are offered.  Payment for United States Treasury Bonds can be made via credit card or bank debit card.

Researching and buying bonds online is easy via the Internet.  It is important to remember that investments in bonds are made as a long term investments, with the objective of earning money from the interest that the bonds pay over the life of the bond.  Before buying bonds online, it is important to research what bonds are available for purchase online and their credit rating to find bonds that are suitable for an investor’s investment goals.

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