Can you trade bonds at TD Ameritrade as of July 2024?
Yes, you can trade bonds at TD Ameritrade.
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TD Ameritrade bond fees, withdrawal fee and more
💰 TD Ameritrade bond fee class | Low |
💰 TD Ameritrade US Treasury bond fees | $0 for Treasury bonds, other bonds are marketed on a net yield basis. UITs are subject to a placement fee from issuer. |
💰 TD Ameritrade EU government bond fees | Not available |
📃 TD Ameritrade number of available bonds | 40,000 |
💰 TD Ameritrade withdrawal fee | $0 |
💰 TD Ameritrade minimum deposit | $0 |
💰 TD Ameritrade inactivity fee | No |
📃 TD Ameritrade deposit methods | Bank transfer |
🗺️ Country of regulation | USA, Hong Kong, Singapore |
🎮 TD Ameritrade demo account provided | Yes |
Data updated on July 19, 2024
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.
Looking for the best brokers for bonds?
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Further reading
- Diversifying your investments
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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.