CD & Bond Trading

Bond FAQs

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. Eastern Time, 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, click on the Trade tab at the top of the page. Next, click on CDs & Bonds on the left side menu. A search tool will be provided so that you can input the criteria that match your investment objective. Once the criteria for your search has been defined select the "Find Bonds" button. This will provide you with a list of bonds that meet those criteria. Select a bond from the "Issue" column to view specifics about that bond. If that bond meets your investment needs, enter the quantity you would like to purchase and select the "Place Order" button.

Q: Are there any tips for utilizing the bond search tool?
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: Click on the My Account tab at the top of the page. Click on Order Status in the left menu. Next, click on CDs & Bonds at the top of the page. 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 three 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.

Featured
Online Community

Education meets interaction in the Scottrade Community. Join Scottrade customers from all over the country as you exchange information, ideas and trading strategies in a comfortable online learning environment.

Interact with Scottrade customers and product specialists. Share your thoughts and learn from others. Grow as an investor. Join our community today!

Learn More About the Community >
The information and content provided in the Scottrade® Knowledge Center is for informational and/or educational purposes only. The information presented or discussed is not, and should not be considered, a recommendation or an offer of, or solicitation of an offer by, Scottrade or its affiliates to buy, sell or hold any security or other financial product or an endorsement or affirmation of any specific investment strategy. You are fully responsible for your investment decisions. Your choice to engage in a particular investment or investment strategy should be based solely on your own research and evaluation of the risks involved, your financial circumstances and your investment objectives. Scottrade, Inc. and its affiliates are not offering or providing, and will not offer or provide, any advice, opinion or recommendation of the suitability, value or profitability of any particular investment or investment strategy.