The best bond trading brokers, according to our research, are:
- DEGIRO
- Exante
- AvaTrade
- Saxo
- Interactive Brokers
- FP Markets
- IG Markets
Among the factors we have taken into consideration to create this ranking are:
- The fees charged on bonds
- The total number of bonds to invest in
- The overall quality of the trading platform
What are the best bond trading platforms?
Below is our handpicked list and review of the best bond trading platforms provided by online brokers, providing valuable insights into their distinct characteristics.
Warning
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
DEGIRO
best platform for investing in bonds
DEGIRO allows trading of over 50 bonds on European exchanges. DEGIRO charges competitive commissions starting at €2 per order. DEGIRO offers bonds through a proprietary platform. DEGIRO requires a minimum deposit of at least €0.01.
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About DEGIRO
DEGIRO is a European online broker founded in 2008, whose CEO is Oliver Behrens. DEGIRO offers access to over 50 global exchanges for trading securities like stocks, ETFs, bonds, options and futures. DEGIRO offers low fee structures, user-friendly platforms, and a AFM regulated investing environment.
DEGIRO Features
The features of DEGIRO are listed below.
- On DEGIRO you can trade over 50 bonds on European stock exchanges.
- Commissions are very competitive and start at €2 per order, plus a €1 management fee.
- Bonds on DEGIRO are offered through the broker’s proprietary platform.
- To invest in bonds on DEGIRO you must open an account with a minimum deposit of at least €0.01.
DEGIRO Pros and Cons
Advantages of DEGIRO
The advantages of DEGIRO are listed below.
- User-Friendly Platform
- Low and Transparent Fees
- Wide Range of Investment Options
Disadvantages of DEGIRO
The disadvantages of DEGIRO are listed below.
- No Direct Cryptocurrency Trading
- Lack of a Demo Account
- Limited Educational Resources
Exante
professional platform for bonds
Exante offers EU, EMEA, U.S. government, and corporate bonds. Exante provides exotic bond options. Exante sets commissions at 9 pips on bonds. Exante requires a minimum deposit of €10,000 for personal accounts.
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About Exante
EXANTE is a global investment company founded in 2011, offering direct market access to over 50 financial markets and 1.3 million instruments across 8 asset classes. EXANTE provides a proprietary trading platform for desktop, mobile, and web. EXANTE is regulated by multiple authorities including FCA, CySEC, and SFC. EXANTE is known for its client-centric approach, competitive pricing, and extensive product range. EXANTE offers personalized service with dedicated account managers. The Exante CEO is Alexey Kirienko.
Exante Features
The features of Exante are listed below.
- Exante is a broker that focuses on providing B2B services.
- On Exante you can find EU, EMEA, U.S. government, and corporate bonds, as well as exotics.
- Commissions are low and start at 9 pips on bonds.
- Opening an account on Exante requires a minimum deposit starting at €10,000, while €5,000 is required to open a corporate account.
Exante Pros and Cons
Advantages of Exante
The advantages of Exante are listed below.
- Wide Range of Instruments
- Transparent Pricing
- Dedicated Support
Disadvantages of Exante
The disadvantages of Exante are listed below.
- High Minimum Deposit
- Limited Automation
- Manual Report Requests
AvaTrade
fixed spread broker on bonds
AvaTrade offers trading on U.S., European, and Japanese bonds. AvaTrade charges a fixed spread on bond trades. AvaTrade offers bonds as CFDs with leverage up to 1:5. AvaTrade provides bonds on the MT5 platform.
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About AvaTrade
AvaTrade is a global forex and CFD broker founded in 2006 and headquartered in Dublin, Ireland. AvaTrade offers trading on currencies, commodities, indices, stocks, bonds, ETFs, and cryptocurrencies. AvaTrade provides proprietary platforms alongside MetaTrader 4 and 5. AvaTrade is regulated by multiple authorities including CySEC, ASIC, and FSA. AvaTrade serves over 300,000 clients worldwide. AvaTrade is known for competitive spreads and extensive educational resources. The AvaTrade CEO is David Dryzin since 2016.
AvaTrade Features
The features of AvaTrade are listed below.
- AvaTrade offers the ability to trade U.S., European and Japanese bonds.
- Commissions on Avatrade are charged through a fixed spread.
- Avatrade offers bonds as CFDs, and therefore allows its users to use leverage of up to 1:5.
- Bonds on AvaTrade are offered on the MT5 platform, which you can try out with a free account.
AvaTrade Pros and Cons
Advantages of AvaTrade
The advantages of AvaTrade are listed below.
- Tight fixed spreads from 0.6 pips (0.9 pips for retail traders)
- The mobile apps are well designed
- Can be connected to ZuluTrade and Duplitrade
Disadvantages of AvaTrade
The disadvantages of AvaTrade are listed below.
- High inactivity fees
- The demo account is limited to 30 days
Saxo
low commissions on bonds
Saxo offers competitive bond commissions. Saxo allows investment in European, U.S., and sector-exposed bonds. Saxo starts bond commissions at 0.05% for active traders. Saxo provides a high-quality trading platform.
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About Saxo
Saxo is a Danish investment bank and online trading platform founded in 1992. Saxo offers trading in forex, stocks, CFDs, futures, options, and other financial instruments across global markets. Saxo provides proprietary trading platforms and white-label solutions for institutional clients. Saxo is regulated by multiple authorities including the Danish FSA and UK FCA. Saxo serves retail and institutional clients in over 170 countries. The Saxo CEO and co-founder is Kim Fournais.
Saxo Features
The features of Saxo are listed below.
- Saxo offers very competitive commissions for those interested in trading bonds.
- Bond commissions on Saxo start at 0.05% for the most active traders, rising to a maximum of 0.2%.
- Saxo allows you to invest in European, U.S., and other bonds exposed to different sectors such as emerging markets.
Saxo Pros and Cons
Advantages of Saxo
The advantages of Saxo are listed below.
- Regulation and Trust
- Extensive Product Range
- Advanced Trading Platform
Disadvantages of Saxo
The disadvantages of Saxo are listed below.
- High Minimum Deposits for Premium Accounts
- Lack of Spread Betting Options
- Custody Fees in Certain Regions
Interactive Brokers
best for bond trading
Interactive Brokers trades U.S., European, and Hong Kong bonds. Interactive Brokers charges a commission starting at 0.1% on bonds. Interactive Brokers uses the IBKR platform for bond trading. Interactive Brokers sets a minimum deposit of $200.
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About Interactive Brokers
Interactive Brokers is a global electronic broker founded in 1978, offering trading in stocks, options, futures, forex, bonds, ETFs, and cryptocurrencies across 150 markets in 33 countries. Interactive Brokers provides advanced trading platforms, low commissions, and access to a wide range of financial instruments. Interactive Brokers is known for its sophisticated technology and serves both retail and institutional clients. Interactive Brokers is regulated by multiple top-tier authorities worldwide. The CEO of the Interactive Brokers Group is Milan Galik.
Interactive Brokers Features
The features of Interactive Brokers are listed below.
- With Interactive Brokers you can trade U.S., European, and Hong Kong bonds.
- Commissions on Interactive Brokers bonds start at 0.1 percent on the transaction (down) depending on the bond selected and the volume of the trade.
- Bonds on Interactive Brokers are traded on the IBKR platform.
- A minimum deposit of $200 is required to open a real account on Interactive Brokers.
Interactive Brokers Pros and Cons
Advantages of Interactive Brokers
The advantages of Interactive Brokers are listed below.
- Low Trading Fees
- Advanced Trading Tools
- Wide Market Access
Disadvantages of Interactive Brokers
The disadvantages of Interactive Brokers are listed below.
- Not user-friendly
- No MetaTrader Support
- Additional Fees
FP Markets
best MetaTrader platform for bonds
FP Markets allows bond trading through MT4 and MT5 platforms. FP Markets offers US and UK bonds as CFDs. FP Markets requires a minimum deposit of $100 to open an account. FP Markets provides competitive spreads.
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About FP Markets
FP Markets is an Australian-based global forex and CFD broker founded in 2005. FP Markets offers trading on over 10,000 instruments including forex, stocks, indices, commodities, and cryptocurrencies. FP Markets provides MetaTrader 4, MetaTrader 5, and proprietary platforms. FP Markets is regulated by multiple authorities including ASIC, CySEC, and FSA. FP Markets is known for tight spreads, fast execution, and extensive educational resources. The FP Markets CEO is Craig Allison.
FP Markets Features
The features of FP Markets are listed below.
- FP Markets allows bonds to be traded through MT4 and MT5.
- On FP Markets, bonds are traded as CFDs.
- FP Markets offers several bonds, including US bonds and UK bonds.
- Opening an FP Markets account requires a minimum deposit of $100, but you can try the service with a demo account.
FP Markets Pros and Cons
Advantages of FP Markets
The advantages of FP Markets are listed below.
- Broad Instrument Offering
- Competitive Spreads
- Multiple Trading Platforms
Disadvantages of FP Markets
The disadvantages of FP Markets are listed below.
- High Fees for International Withdrawals
- Outdated Platform Design
IG Markets
for investing in bonds in CFDs
IG Markets allows trading of bond contract fractions via CFDs. IG Markets charges only the spread starting at 1 pip on bonds. IG Markets offers trading on 12 bonds, including U.S. and Japanese bonds. IG Markets requires a minimum deposit of $300.
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About IG Markets
IG Markets is a global online trading provider founded in 1974, offering access to over 17,000 financial markets including forex, stocks, indices, commodities, and cryptocurrencies. IG Markets provides proprietary trading platforms alongside MetaTrader 4 and ProRealTime. IG Markets is regulated by multiple top-tier authorities worldwide, including the FCA and ASIC. IG Markets is known for competitive spreads, extensive educational resources, and innovative features like weekend trading. The IG Markets’ parent company “IG Group” CEO is Breon Corcoran.
IG Markets Features
The features of IG Markets are listed below.
- With IG Markets you can also trade fractions of a bond contract.
- Trading on IG is done through CFDs.
- The only commission charged by IG on bonds is the spread, and it starts at 1 pip.
- In all you will be able to trade 12 bonds, including U.S., Japanese and other bonds.
- Opening an IG account requires a minimum deposit of $300.
IG Markets Pros and Cons
Advantages of IG Markets
The advantages of IG Markets are listed below.
- Low spreads from 0.6 pips on Forex
- Wide range of financial instruments
- 40 years of experience in the Forex industry
Disadvantages of IG Markets
The disadvantages of IG Markets are listed below.
- No copy trading features
- No social trading features
How to choose a broker for bond investing
When diving into the world of bond investing, it’s crucial to select a broker that aligns with your investment goals. Here are some steps to guide you:
- One of the most crucial aspects to consider is whether the broker is regulated. Brokers regulated by well-known financial watchdogs such as the FCA (Financial Conduct Authority), ASIC (Australian Securities and Investments Commission), NFA (National Futures Association), or CFTC (Commodity Futures Trading Commission) tend to be more trustworthy. This ensures that they adhere to stringent rules and provide a level of protection to their investors.
- Different brokers have varying bond offerings. Some may offer bonds as Contract For Differences (CFDs) allowing traders to speculate on bond prices changes without owning the actual bond. Others may offer the actual bonds for purchase. Additionally, the range of available bonds may differ; not all brokers will provide every bond type on the market. Therefore, it’s essential to ensure that your chosen broker offers the specific bonds you’re interested in.
- Just as with stocks and other securities, brokers charge fees for bond transactions. A good benchmark is to look for brokers that offer commissions on bonds below 1%. However, don’t forget to consider other potential costs, such as account maintenance fees or inactivity fees.
What are the types of bonds?
There are different types of bonds. Below is a summary list with a brief explanation of each.
- Government Bonds: Issued by national governments, these are considered low-risk as they’re backed by the issuing country. They fund public projects and operations.
- Municipal Bonds: Issued by state or local governments to fund projects like schools, hospitals, or infrastructure. Often tax-exempt.
- Corporate Bonds: Issued by companies to raise capital for operations or expansion. Risk varies with the issuing company’s financial health.
- Savings Bonds: Low-risk bonds issued by governments, typically purchased for future needs like education or retirement.
- Agency Bonds: Issued by government-affiliated organizations, slightly riskier than government bonds but usually offer higher yields.
- Zero-Coupon Bonds: Sold at a discount and redeemed at face value, with no regular interest payments.
- Convertible Bonds: Corporate bonds that can be converted into a predetermined amount of the company’s stock.
- Junk Bonds: High-risk, high-yield bonds issued by companies with lower credit ratings.
- Inflation-Linked Bonds: Their value is adjusted with inflation, offering protection against inflation risk.
- Foreign Bonds: Issued by a foreign government or corporation, denominated in the investor’s home currency.
Do you need a broker to buy bonds?
Bond investors require a broker to execute buy and sell orders. However, there are exceptions such as with government bonds which in some countries can be bought directly by citizens under specified conditions, bypassing brokers altogether.
So, for those looking to venture into more diverse bond investments, contacting a financial institution that operates as a broker is essential. These financial institutions are usually banks or funds.
Alternatively, one can open an account with dedicated bond brokerage firms. A popular example of such a firm is Interactive Brokers, known for its expansive bond offerings and competitive rates.
What are the most profitable bonds?
Taking the major 10-year government bonds into consideration, Brazilian bonds are currently the most profitable.
Generally, the bonds that yield the most are the ones that require more risk on the part of the investor. The more stable the underlying of a bond, the more certain one is that the bond will be repaid, and thus the lower the yield.
Consequently, one must consider that bond yields are not fixed, but vary according to interest rates that are often derived from the macroeconomic and geopolitical situation of the issuer.
| Government bonds | 10-YR Yield |
|---|---|
| Brazil | 10,79% |
| Mexico | 8,96% |
| India | 7,19% |
| New Zealand | 4,79% |
| United Kingdom | 4,44% |
| Italy | 4,26% |
| Australia | 4,19% |
| United States | 4,16% |
| South Korea | 3,87% |
| Greece | 3,81% |
| Canada | 3,64% |
| Spain | 3,64% |
| Portugal | 3,29% |
| France | 3,13% |
| Singapore | 3,04% |
| Netherlands | 2,93% |
| Germany | 2,60% |
| Switzerland | 1,00% |
| Japan | 0,63% |
*As per August 2023
How much can you earn on bonds?
In any case, the earnings on bonds depend on their yield. For instance, the average 10-year bond yield is 4% so, investing $100 will yield $4 in interest.
To know on average how much you can earn from a bond in a year, you need to divide the total yield by the number of years of the bond. For example, if you have a 10-yr bond with a yield of 10 percent, at the end of 10 years you will have earned an average of 1 percent per year.
Generally, the riskier a bond is, the higher the yield. Also, the gain may vary depending on when you liquidate the bond.
In other words, if you liquidate the bond before it matures (for example, by selling a 5-yr bond in its third year), you will earn less than if you wait until its natural maturity.
Useful resources for investing in bonds
Bloomberg is one of the leading portals for those who want to monitor the bond market. In addition to providing useful news, with Bloomberg, you can get a daily, up-to-date overview of global bond market performance.
For insight into bond ratings, there is Morningstar, which is a free service that provides professional insights into financial markets. Although the basic information is there for free, to get in-depth bond insights and ratings, a subscription fee is required.
A similar alternative to Morningstar is Yahoo Finance, which in addition to offering market insights, also offers a convenient news section to monitor the bond market.
Pros and cons of investing in bonds
Pros:
- Good for long term investing
- Low volatility
Cons:
- The issuer may fail to repay the investor