WHAT YOU SHOULD KNOW
It pays to compare prices between brokers.
When buying bonds, shopping around to find the lowest market price and transaction fees is especially worthwhile. Transaction costs can either be a flat fee or a percentage of your overall trade, and can vary depending on where you purchase the bond.
Investors are often kept in the dark on bond mark-ups — here's what you need to know
1. As of 1/23/2012.
Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks, including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors.
In the bond market there is no centralized exchange or quotation service for most fixed income securities. Prices in the secondary market generally reflect activity by market participants or dealers linked to various trading systems. Bonds available through Schwab may be available through other dealers at superior or inferior prices compared to those available at Schwab. All prices are subject to change without prior notice. Schwab reserves the right to act as principal on any bond transaction. In secondary market principal transactions, the price will be subject to our standard markup in the case of purchases and a markdown in the case of sales and also may include a profit or loss to Schwab in the form of a bid-ask spread.