Q: What types of bonds are available through the Scottrade® Bond Center?
A: Currently the following types of bonds are available to trade online:
- Investment-Grade Municipal Bonds
- Investment-Grade Corporate Bonds and Govt. Agencies
- Treasury Bills, Notes, Bonds and Strips
Q: What are the hours for bond trading?
A: Scottrade will accept and process your bond orders between the hours of 9 a.m. and 4 p.m. ET, Monday through Friday (except holidays).
Q: Who can I contact regarding general questions about CD & Bond products?
A: If you have questions that are general in nature about investing in CD & Bond products, please call your local Scottrade® branch office.
Q: Are my bond holdings marginable?
A: Investment-grade bonds are marginable at Scottrade.
Q: How will I receive interest payments from my bonds?
A: Interest payments from the issuer will be paid to your Scottrade® account. If you have elected to have these paid to you, Scottrade will issue you a check on the corresponding Scottrade® payout date. Scottrade makes payouts for dividends and interest payments twice a month.
Q: Will I receive a certificate for my bonds?
A: No, bonds traded through Scottrade will be available in book-entry form only. Your bonds will be held for you at Scottrade.
Q: How do I buy bonds?
A: To purchase all types of bonds, hover over Trade at the top of your account page. Next, click CDs & Bonds Overview under the Trade CDs & Bonds heading. On the next screen, hover over Bonds to select the type of bond you’d like to buy. A search tool will be provided so that you can input the criteria that match your investment objectives. Once the criteria for your search has been defined, select the Find Bonds button. Select a bond from the Issue Description column to view specifics about that bond. If that bond meets your investment needs, click the Buy button. Enter the quantity, and then click Preview Order to finalize and submit your order.
Q: Are there any tips for searching for bonds?
A: When defining your criteria, a larger range will produce a larger number of offerings. Checking a constraint box will restrict the number of offerings displayed. If you have a particular issuer in mind, just type in the issue name and click the Search button. If you know the CUSIP of a bond, you can determine immediately if that bond is available by typing in the CUSIP and clicking on the search.
Q: How do I sell bonds?
A: If you have decided to sell your bonds, you must call your local Scottrade® office and ask for firm bids.
Q: How can I check the status of open orders?
A: Hover over Trade at the top of your account page. Click on CDs & Bonds under the Order Status heading. Select the type of bond for which you would like to view the order status.
Q: Are there minimums that must be purchased?
A: Corporate, Municipal, U.S. Treasuries and U.S. agency bonds have a $5,000 minimum and then can be purchased in $1,000 increments, except for muni bonds. Municipals must be traded in $5,000 increments. New Corporate Offerings have a $5,000 minimum, but after the minimum can be purchased in $1,000 increments. CDs have a $5,000 minimum and can be purchased in $1,000 increments.
Some bonds may have higher minimum requirements. If a bond does have a higher minimum, this will be indicated on the order screen. Each order must be for at least one whole bond; no fractional bond orders can be placed.
Q: When do bond trades settle?
A: Almost all Corporate and Municipal trades placed through Scottrade settle 2 business days after the date of your trade. U.S. Treasuries and Agencies settle the day after the trade date.
Q: How will I receive my confirmation?
A: Your Scottrade® confirmation will appear online the day following the execution of the trade.
Bonds involve risks including, but not limited to interest rate risk, reinvestment risk, inflation risk, call risk, liquidity risk, credit risk, market risk, default risk, event risk, and a risk of loss of principal. New issue offerings are sold by prospectus or offering circular available at www.scottrade.com. Investors should read these carefully.