INVESTMENT PRODUCTS

Bonds

Diversify your investment and generate income with a less risky alternative to stocks.

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fidelitytradex bonds

What are bonds?

Bonds are loans you make to a government, government agency, or corporation, which they use to finance projects and other needs. The bond issuer agrees to repay you at a fixed interest rate by a specified date, or maturity.

You may want to consider investing in bonds if:

  • You’re saving for a goal, like a house, or college, or are looking for fixed income in retirement.
  • You want to focus on a specific credit quality or maturity.
  • You'd like exposure to specific state or corporate issuers or to certain industries. You're looking for income with tax advantages.
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fidelitytradex what is bonds

Understand the minimums and fees

We offer two ways to buy bonds through our platform:

  • New issues are purchased directly from the issuer.
  • Secondary trades are purchased from other people who are selling their bonds.

Note: Vanguard Brokerage charges an additional $25 broker-assisted fee for secondary trades placed over the phone.

Minimum amount

  • For most bonds, $1,000, with additional purchases in increments of $1,000.
  • For municipals bonds, $5000 with additional purchases in increments of $5000.
  • All fixed income trades are subject to dealer minimums.

New issues

$0

Secondary trades

$1 per $1,000 invested