Trade bonds LSE 30 December 2012 at 6:44PM in Savings & investments 5 replies 855 views

Giammy85

What is the most convenient way to buy retails bonds?

I read there is an electronic order book for retails bonds charging a 90 pence fee, but I cannot see how/where to use it


Thanks

LardyCake

AFAIK you can only do this through a broker.

Buying bonds after issue:
I have used both the Halifax Share Dealing service and Hargreaves Lansdown (HL). In both cases you need to phone to do the deal. In both cases I had to pay commission (approx £50 on a £10,000 deal) and "lost interest" compensation to the seller (this will vary). There is usually a minimum dealing unit eg: £1,000.

Buying retail bonds at issue:
I have also bought bonds through HL "at issue". These were at unit price and there were no other charges and the deal could be done via the web.

Linton

Several of the standard online brokers trade bonds through the same interface as shares. I know that iii offer this.

Giammy85

These fees are incredibly high with respect to trading in other EU Countries! And it is very strange banks as Halifax, Santander, Barclays do not offer the possibility to trade bonds on online platforms (so charging a phone fee of about 50£).

iii charges a 80£ yearly admin fee, is there any service for a small investor charging just a 0.1% fee (10£ for a 10000£ deal) par investment?

Giammy85

Giammy85 wrote: »

These fees are incredibly high with respect to trading in other EU Countries! And it is very strange banks as Halifax, Santander, Barclays do not offer the possibility to trade bonds on online platforms (so charging a phone fee of about 50£).

iii charges a 80£ yearly admin fee, is there any service for a small investor charging just a 0.1% fee (10£ for a 10000£ deal) par investment?

So, Halifax don't charge an admin fee for their share dealing account plus they say they can honour the 11.95£ online commission for trading bonds.

Reaper

Giammy85 wrote: »

Halifax don't charge an admin fee for their share dealing account plus they say they can honour the 11.95£ online commission for trading bonds.

I think this may be fairly common. In the past XO only charged me their online rate of £5.95 when buying assets by phone that their web site did not support, and I dimly Sippdeal doing the same when buying a bond for my Sipp, if I remember right.