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Savings & Income
Best Brokers for Bonds and Fixed Income
Fidelity, Schwab, Vanguard, E*TRADE and Merrill charge $0 for Treasuries online and about $1 per corporate or municipal bond, and Fidelity lists over 150,000 bonds. Interactive Brokers costs less on bigger trades: $32.50 for $100,000 of corporates versus $100 elsewhere. Public sells fractional bonds from $100. Checked September 29, 2026.
Which Broker Fits How You Buy Bonds
Most large brokers now charge $0 for Treasuries online and $1 per corporate or municipal bond, so the differences are inventory, tools and the cost of larger trades. Checked September 29, 2026.
The widest choice of US bonds
Fidelity
Over 150,000 individual bonds, $0 Treasuries, $1 per secondary bond and a Bond Ladder Tool.
See in comparison table ↑
Larger corporate and muni trades
Interactive Brokers
$32.50 to buy $100,000 of corporate bonds, against $100 at $1-per-bond brokers, and over 1 million bonds globally.
Interactive Brokers review →
Treasury and CD ladders
Charles Schwab
$0 Treasuries, $1 per bond with a $250 cap, and a ladder builder with automatic rollover.
Schwab review →
Screening bonds
E*TRADE
50,000+ bonds from over 200 liquidity providers, with basic and advanced screeners and a Bond Ladder Builder.
E*TRADE review →
Bonds plus low-cost bond funds
Vanguard
$0 Treasuries and new-issue corporates, and the Total Bond Market ETF (BND) at a 0.03% expense ratio.
See in comparison table ↑
Buying bonds with $100
Public
Fractional corporate and Treasury bonds from $100 in any increment, priced with a markup.
Public review →What Bond Commissions Cost
Buying corporate bonds on the secondary market, at each broker’s published online rate. New-issue bonds are $0 at Fidelity, Schwab, Vanguard and Merrill.
Compare the commission on a bond trade
| Broker | Pricing | Commission | As % of face |
|---|
Up to $200,000 of face value. Rates checked September 29, 2026. The bond’s price also includes a markup or spread set by the dealer, which isn’t shown here. Broker-assisted trades cost more.
Ways To Own Bonds
| Type | What it is | Tax on interest | Online cost at most brokers here |
|---|---|---|---|
| Treasuries | Bills, notes and bonds issued by the US government | Federal only; exempt from state and local tax | $0 |
| Corporate bonds | Debt issued by companies, with credit risk | Federal, state and local | $1 per bond secondary; $0 new issue |
| Municipal bonds | Debt issued by states and cities | Usually exempt from federal tax | $1 per bond secondary |
| Brokered CDs | Bank CDs bought through a broker, FDIC-insured | Federal, state and local | $0 new issue |
| Bond funds and ETFs | A diversified basket with no maturity date | Depends on the holdings | Expense ratio, e.g. 0.03% for BND |
On September 28, 2026, Treasury yields were 4.04% for 1 month, 4.59% for 1 year and 5.24% for 10 years, per the US Treasury’s daily par yield curve. Tax treatment is general; check your own situation.
Four Risks To Understand
Rates
Interest rate risk
When rates rise, existing bond prices fall. Longer maturities fall further, which matters only if you sell before maturity.
Credit
Default risk
Corporate and municipal issuers can miss payments. Credit ratings and yield spreads over Treasuries show how much risk the market sees.
Calls
Early redemption
Callable bonds can be repaid early, usually when rates fall, cutting off the yield you expected.
Liquidity
Hidden trading costs
Smaller issues trade less often, so the dealer markup or bid-ask spread can cost more than the commission.
What To Check Before You Buy a Bond
- Yield to worst. For callable bonds, this shows the lowest yield you could get if the bond is called early.
- The credit rating. Check the rating and whether the bond is senior or subordinated debt.
- The markup. Compare the price at more than one broker; FINRA requires markups to be disclosed on many retail trades.
- Minimum and increments. Most bonds trade in $1,000 units, but some municipals need $5,000, as at Vanguard.
- Taxes. Compare Treasuries, munis and corporates on an after-tax basis for your tax bracket.
- Whether a fund is simpler. For small amounts, a low-cost bond ETF gives diversification that single bonds can’t.
How To Start Buying Bonds
- Set the goal. Income, a known amount at a future date, or a safe place for cash.
- Choose the type. Treasuries for safety and state-tax savings, munis for federal-tax savings, corporates for higher yield.
- Pick a broker. Use the table: $0 Treasuries at most brokers, lower commissions on large trades at IBKR.
- Screen for bonds. Filter by maturity, rating, yield and call features.
- Consider a ladder. Stagger maturities so bonds come due regularly and can be reinvested.
- Hold or review. Held to maturity, a bond repays face value unless the issuer defaults.
How We Compared
Commissions, inventory and tools come from each broker’s official bond and pricing pages, checked September 29, 2026 and summarized in the comparison table. Costs are for online secondary-market corporate bonds unless noted. Saxo isn’t included because it doesn’t accept US residents. Brokers marked “Special Offer” are AInvest partners, and AInvest may be compensated when you open an account through this page. Bonds can lose value, and past yields don’t guarantee future returns.
FAQ & Glossary
Which broker is best for buying bonds and fixed income?
For most investors, Fidelity, Schwab, Vanguard, E*TRADE and Merrill all charge $0 for Treasuries online and about $1 per corporate or municipal bond; Fidelity has the largest inventory at over 150,000 bonds. For larger trades, Interactive Brokers charges less, $32.50 on $100,000 of corporate bonds. Checked September 29, 2026.
Is fixed income the same as bonds?
Bonds are the main type of fixed income, but fixed income also includes CDs, Treasury bills, money market instruments and bond funds. All pay interest on a set schedule or rate, which is where the name comes from.
Should I use bond ETFs or individual bonds?
ETFs offer liquidity and diversification, while individual bonds offer maturity control. Choose based on your strategy and effort tolerance.
What is the biggest hidden risk in bond portfolios?
Duration risk: even high-quality bonds can drop significantly if interest rates rise quickly. Liquidity risk is often underestimated too.
What is Duration?
A measure of bond price sensitivity to interest rate changes. Higher duration = more sensitive to rate moves = bigger potential losses if rates rise.
What is Credit Risk?
The risk that a bond issuer defaults or stops paying interest. Lower-rated bonds have higher credit risk but offer higher yields.
What is Spread?
The price difference between what a bond broker paid for a security and what you pay when you buy it. Wider spread = higher cost to you.
What is Bid-Ask Spread?
The difference between the highest price someone will pay (bid) and the lowest price someone will sell (ask). Tighter spreads mean lower costs.
What is Treasury Bond?
A debt security issued by the U.S. government. Generally has the tightest spreads and lowest credit risk.
What is Yield Curve?
A graph of bond yields across different maturity dates. Slopes up (longer bonds pay more) or inverts (shorter bonds pay more) based on economic outlook.