How to Buy Bonds on E Trade

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A bond is an investment that involves loaning money to a corporation or government for a specified period of time. The interest rate on the debt is fixed. When you invest in bonds, you are providing cash to companies or government agencies that want to finance projects or programs. When you invest in bonds, you can typically count on receiving interest payments every six months. E*Trade is an online investing platform that provides opportunities to buy and sell all sorts of assets, including bonds. This article will outline the steps to take in buying bonds on E*Trade.

Method 1
Method 1 of 3:

Researching Available Bonds on E-Trade

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    If you do not already have an account, you will need to set one up. The instructions are easy to follow. Simply click on the green box that says Open An Account. [1]
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    These will include U.S. Treasury bills and bonds, government agency and corporate bonds, municipal bonds and certificates of deposit. [2]
    • Use the Search function. Go to E*Trade's Bond Center and click on the tab that says "Search current bond offerings."
    • Fill out the fields in the Quick Search form for a list of bonds that fit your requirements. You can also use the Advanced Search option to further define your search criteria. For example, you can limit your search to Treasury bonds or to bonds that will provide a particular yield.
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    When you select a bond that interests you, you can get a calculated price and yield for that bond to help you plan your investment.
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    This number will be needed to get information about a bond, get a quote or place an order. It is a nine-digit number assigned by the Committee on Uniform Securities Identification Procedures.
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Method 2
Method 2 of 3:

Requesting a Bond Quote on E*Trade

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    This is not the same as placing an order or buying a bond. Before you purchase a bond, you must get a price quote for it. [3]
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    This will take you to the same screen where you would place your order, but you are not doing that yet. [4]
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    This will provide you with the lowest available bond prices.
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    Make sure all of the information is accurate, particularly the CUSIP number. Once you have verified the information, click on "Place Order."
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    E*Trade will scan the markets and provide you with the information you need. The process may take up to 15 minutes.
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Method 3
Method 3 of 3:

Placing an Order to Purchase a Bond on E*Trade

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    [5]
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    • Buy Treasury bonds at auction by clicking on the "Treasury Auction" page and entering the number of bonds you want to buy. Select the Treasury issue you wish to purchase from the list of options. Preview your order and then click "Place Order" when you're ready.
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    [6]
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    Input that number on the "Set Price" screen.
    • Pay attention to minimum-denomination requirements. If the price you enter does not meet those requirements, you will be notified when you preview your order. For example, you must buy a full bond, not a fraction of a bond. They come in denominations starting at $1,000. Some bond dealers require a minimum purchase of as much as $10,000.
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    [7]
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    Whether you bought Treasury bonds at auction or placed an order for other bonds, you will be notified of that trade as soon as it goes through. It should take only a few minutes.
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Community Q&A

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  • Question
    What municipal bonds does E Trade currently sell?
    Donagan
    Top Answerer
    Their portfolio of bond offerings changes often. See Method 1 Step 2 above, or call them at 800-ETRADE-1.
    Thanks! We're glad this was helpful.
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  • Question
    What is the nine digit code I need to enter when buying company or government bonds?
    Community Answer
    Your social security number. Your social security number is 9 digits.
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      Tips

      • Make sure you have enough money in your E*Trade brokerage account to cover your bond purchases. If you do not, the trade will not go through.
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      • Contact E*Trade customer service if you have problems or questions. Account holders can call E*Trade, email them or conduct a chat online.
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      Things You'll Need

      • E*Trade account

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      References

      1. ↑ https://us.etrade.com/e/t/user/login
      2. ↑ https://us.etrade.com/e/t/estation/help?id=1306000000#Know
      3. ↑ https://us.etrade.com/e/t/estation/help?id=1306000000#Get
      4. ↑ https://us.etrade.com/e/t/estation/help?id=1306000000#Get
      5. ↑ https://pocketsense.com/buy-bonds-etrade-4899016.html
      6. ↑ https://www.youtube.com/watch?v=rY83xDkvbRE
      7. ↑ https://www.youtube.com/watch?v=rY83xDkvbRE
      8. http://www.investopedia.com/terms/b/bond.asp#axzz24kwJEEon

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