6 Best Online Brokers for Bonds of November 2024
The best brokers for bonds offer a range of different types of bond products – including individual bonds and ETFs — as well as low trading fees and high cash sweep rates.
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Why trust NerdWallet
Bonds are often an important part of a balanced investment portfolio. They can be used as a source of fixed income, or as a way to potentially pad the losses of other portfolio assets, like stocks. Brokers range in the types of bonds they offer, from simple products like bond ETFs to extensive offerings of government, corporate and international bonds and bond funds.
The following brokers score highest among all brokers we review for the types of bonds on offer, the fees charged for trading bonds, the level of customer support they provide and their interest rate on uninvested cash.
Note: The below trade fees refer to the broker's commission for U.S. Treasurys — all of the brokers on this list allow you to purchase those with no commission or trade fee except for Interactive Brokers, which charges a small percentage of face value. Other types of bonds at these brokers may carry a different fee; we've described those fees in detail in the product cards below the table. Often, brokers require a minimum commission of $10 and limit commissions to $250 per trade.
Why trust NerdWallet
Bonds are often an important part of a balanced investment portfolio. They can be used as a source of fixed income, or as a way to potentially pad the losses of other portfolio assets, like stocks. Brokers range in the types of bonds they offer, from simple products like bond ETFs to extensive offerings of government, corporate and international bonds and bond funds.
The following brokers score highest among all brokers we review for the types of bonds on offer, the fees charged for trading bonds, the level of customer support they provide and their interest rate on uninvested cash.
Note: The below trade fees refer to the broker's commission for U.S. Treasurys — all of the brokers on this list allow you to purchase those with no commission or trade fee except for Interactive Brokers, which charges a small percentage of face value. Other types of bonds at these brokers may carry a different fee; we've described those fees in detail in the product cards below the table. Often, brokers require a minimum commission of $10 and limit commissions to $250 per trade.
Best Online Brokers for Bonds
| Broker | NerdWallet rating | Fees | Account minimum | Promotion | Learn more |
|---|---|---|---|---|---|
 Charles Schwab Learn more on Charles Schwab's website | $0 per online equity trade | $0 | None no promotion available at this time | Learn more on Charles Schwab's website | |
 J.P. Morgan Self-Directed Investing Learn more on J.P. Morgan's website | $0 per trade | $0 | Get up to $700 when you open and fund a J.P. Morgan Self-Directed Investing account with qualifying new money. | Learn more on J.P. Morgan's website | |
 Vanguard Learn more on Vanguard's website | $0 per trade | $0 | None no promotion available at this time | Learn more on Vanguard's website | |
 Interactive Brokers IBKR Learn more on Interactive Brokers' website | 0.002% | $0 | None no promotion available at this time | Learn more on Interactive Brokers' website | |
 Fidelity | $0 per trade | $0 | None no promotion available at this time | Read review | |
 Merrill Edge® Self-Directed | $0 per trade | $0 | None no promotion available at this time | Read review |
$0
per online equity trade
$0
None
no promotion available at this time
Pros
No commission for U.S. Treasurys.
Commission-free bond ETFs.
Over 155,000 individual bonds.
Free access to fixed-income specialists to help clients choose products.
Cons
$1 per online bond trade for secondary issues of non-Treasurys.
$10 minimum trade fee; $250 maximum.
Why We Like It
Charles Schwab has earned its strong reputation: The broker offers high-quality customer service, four free trading platforms, a wide selection of no-transaction-fee mutual funds and $0 commissions for stocks, ETFs and options.
$0
per trade
$0
Get up to $700
when you open and fund a J.P. Morgan Self-Directed Investing account with qualifying new money.
Pros
No commission for U.S. Treasurys.
Commission-free bond ETFs.
Cons
$10 per trade + $1 per bond over 10 bonds for non-Treasurys. $250 maximum trade fee.
Why We Like It
J.P. Morgan Self-Directed Investing is a clear-cut investment platform that is great for beginners looking to learn how to buy and sell investments. More advanced investors, however, may find it lacking in terms of available assets, tools and research. INVESTMENT PRODUCTS: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
$0
per trade
$0
None
no promotion available at this time
Pros
No commission for U.S. Treasurys.
Commission-free bond ETFs.
Cons
$1 per $1,000 face amount on non-Treasurys. $250 maximum trade fee.
Why We Like It
Vanguard is the king of low-cost investing, making it ideal for buy-and-hold and retirement investors. It offers a top-notch selection of proprietary, low-cost mutual funds, including many ESG options. Despite its $0 trade commission, active traders will find the broker falls short due to the lack of a strong trading platform.
0.002%
$0
None
no promotion available at this time
Pros
Access to sovereign bonds.
One of the widest bond selections of any broker NerdWallet reviews.
Minimum commission is only $5.
Cons
Commission of 0.002% of face value for Treasurys up to $1M (0.001% over $1M).
No maximum commission.
Why We Like It
Interactive Brokers has one of the most extensive bond offerings in the business, giving investors access to Treasury bonds, corporates, municipal bonds and even foreign sovereign bonds, as well as bond funds.
Best Online Broker for Bond Investors 2024
$0
per trade
$0
None
no promotion available at this time
Pros
No commission for U.S. Treasurys.
Over 100,000 individual bonds.
Commission-free bond ETFs.
Cons
$1 per online bond trade for non-Treasurys.
Why We Like It
Fidelity offers $0 trading commissions, a selection of more than 3,300 no-transaction-fee mutual funds and top-notch research tools and trading platform. Its zero-fee index funds and strong customer service reputation are just icing on the cake.
$0
per trade
$0
None
no promotion available at this time
Pros
No commission for U.S. Treasurys.
Commission-free bond ETFs.
Cons
$1 per online bond trade for non-Treasurys.
$10 minimum trade fee for non-Treasurys; $250 maximum.
Why We Like It
Merrill Edge's extensive research and educational offerings, its Idea Builder investment-finder tool, and its seamless integration with other Bank of America accounts make it a solid choice for beginner investors.
Last updated on November 4, 2024
Methodology
NerdWallet’s comprehensive review process evaluates and ranks the largest U.S. brokerage firms by assets under management, along with emerging industry players. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs. We adhere to strict guidelines for editorial integrity.
We collect data directly from providers through detailed questionnaires, and conduct first-hand testing and observation through provider demonstrations. The questionnaire answers, combined with demonstrations, interviews of personnel at the providers and our specialists’ hands-on research, fuel our proprietary assessment process that scores each provider’s performance across more than 20 factors. The final output produces star ratings from poor (one star) to excellent (five stars).
For more details about the categories considered when rating brokers and our process, read our full methodology.
To recap our selections...
