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Can you trade bonds at Charles Schwab?

Your expert
Adam N.
Fact checked by
Updated
Jul 2024
Personally tested
Data-driven
Independent

Can you trade bonds at Charles Schwab as of July 2024?

Yes, you can trade bonds at Charles Schwab.

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Charles Schwab bond fees, withdrawal fee and more

Charles Schwab main highlights
💰 Charles Schwab bond fee class Low
💰 Charles Schwab US Treasury bond fees $0 for Treasury bonds; $1 per bond for corporate bonds with $10 minimum and $250 maximum
💰 Charles Schwab EU government bond fees Not available
📃 Charles Schwab number of available bonds 60,000
💰 Charles Schwab withdrawal fee $0
💰 Charles Schwab minimum deposit $0
💰 Charles Schwab inactivity fee No
📃 Charles Schwab deposit methods Bank transfer
🗺️ Country of regulation USA, UK, Hong Kong, Singapore
🎮 Charles Schwab demo account provided Yes

Data updated on July 19, 2024

Overall score
4.7/5
Minimum deposit
$0
Stock fee
Low
Options fee
Low
Inactivity fee
no
Account opening
1 day

What are bonds?

Bonds are securities that offer fixed income and act as a loan agreement between the investor and borrower (usually a corporate or the government). You, the investor, lend money to a government or a corporation and receive regular interest payments in return, until the bond matures and you get your money back. Here's a simple example of what a bond is: for instance, if you purchase a $100 ten-year government bond with a 5% annual interest rate, you are effectively loaning $100 to the government for ten years and earning 5% interest each year until the bond matures. When the bond matures, you get your initial $100 back. If you want to know more about bonds, check out our article on What is a bond?

Inflation-linked bonds

Of the various bond types, inflation-linked bonds are among the most popular, given their ability to protect investors' money from inflation.

Inflation and how to safeguard your money against it is usually a highly relevant topic. Given the volatile nature of inflation, it is always a good idea to be prepared against its potential rise. The chart below shows inflation rates across the US, the UK and the eurozone.

What are inflation-linked bonds?

Inflation-linked bonds are designed to protect investors from inflation. These securities are usually issued by national governments and are tied to inflation rates. This means, that the principal (which is the amount you get when the bond expires) and the interest rate are regularly adjusted to track inflationary trends.

Inflation-linked bonds are widely available for retail investors in major markets around the world, including the United States and Europe. In the US, they are known as Treasury Inflation-Protected Securities (TIPS), which adjust the principal value in response to inflation, while the interest payment fluctuates based on the bond's adjusted principal value. In the eurozone, retail investors can acquire euro-denominated inflation-linked bonds issued by different governments within the region.

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Further reading

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.

author
Adam Nasli
Author of this article
I bring extensive financial expertise as one of BrokerChooser's earliest team members. Personally, I tested nearly all 100+ brokers on our site, opening real-money accounts, executing trades, assessing customer services, and providing firsthand assessment. My professional background includes roles in the banking sector and a degree from Central European University, where I teach finance. My passions lies in in-depth research of the financial industry, building trading algorithms, and managing long-term investments.
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