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  1. #1

    Best deal on buying individual corp bonds?

    Hi, I would like some advice.
    I have most of my money in my SEP and IRA accounts at TD Ameritrade. The corporate bonds I hold there (about 25% of my portfolio) were bought through TD.
    I have never dug into whether I'm getting the best price. That is, is it worth shopping elsewhere, or is the price the guy at TD gives me pretty much what's available?
    Relevant or otherwise, I typically spend $20,000 to $30,000 per bond purchase.
    Any wisdom? Thanks in advance

  2. #2
    You're almost certainly paying a decent mark up to TDA's cost. However, you'll have a hard time negotiating a better deal elsewhere because your purchases are so small.
    Credit is where active management by professional investors makes a lot of sense. An active manager's cost savings on mark ups/mark downs alone can easily overcome a 0.5% expense ratio.

  3. #3
    Thanks. I'm not sure what you mean by "credit;" also, are you suggesting a fund when you reference active managers?

  4. #4
    I researched this several years ago and Zions Direct and Fidelity appeared to be the least expensive for purchasing individual bonds - recommend checking them both out. Fidelity has a page below comparing their pricing.


 

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