Radical Guide to Online Bond Investing: Schwab

  • Schwab is the best known participating broker (also a board member) in the ValuBond  marketplace.  Schwab does not advertise a flat pricing schedule.  You can rest assured its spread is in your trade.
  • One plus is its trading desk, which is known and respected in the markets.  The desk is well-complemented by Schwab’s retail-directed bond research, too.  Unlike other brokers, Schwab advertises it will handle 250 or more bond directly off its desk.  Understanding the institutional market is vastly different from the retail one, Schwab has smartly aligned its desk to handle larger-sized trades.
  • One negative is the fog of customer services.  In a phone call to its “fixed income experts,” you are quickly shepherded to someone who is miles from the actual trading desk.  While Schwab continues to stress self-directed investing, you feel also that the financial advisor is king. Because of the extra revenue for Schwab from FA-assisted trading, its emphasis is not misplaced. 

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June 3, 2005 | Permalink

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