Trade bonds directly (not using an ETF)

The previous title (Bonds Trading Bonds) was a James Bond reference. Thanks for letting me know that was not clear enough. I thought it was witty XD.

Regarding the bonds ETFs from my understanding so far, since they don’t hold the bonds to maturity, make the calculation of the YTM a bit more complicated. So knowing how the specific ETF works is very important as well knowing what are the bonds in it so that you can have an idea of how the price will be affected by the introduction of new bonds with higher or lower coupon.

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Honestly not likely to happen anytime soon. Only about 30% of fixed income is done electronically, the rest is done by phone and on trading floors. TradeWeb is trying to change this and has amazing buy in from the big banks for the interbank markets, but the retail market relies on brokers who are not yet platformed appropriately.

They’re also not incentivized to do so. Retail markets are dominated by equities with currencies in a very distant second. Fixed income is even further behind again, in 4th place.

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Generally speaking, but HL offer UK Gilt trades online at their normal share dealing price (from what I can tell from their website, I haven’t tried it myself), and don’t charge their normal platform fee to hold them. So it’s actually one of the cheapest things you can do with them.

@Rob talks about the increased complexity and costs for bond trading in general, but can a similar carve-out be applied at Freetrade just for UK Gilts?

So what’s in 3rd place?


Adding this sentence to be over 20 characters