How can I buy bonds?

The majority of private investors will buy (and sell) bonds through their stockbroker. Most stockbrokers wil be able to offer a dealing service in UK Gilts, but only a limited number can offer facilities in non-Gilt bonds such as Eurosterling and corporate bonds. When opening an account for bond dealing, investors should consider and compare charges for both dealing and custody. Also consider what service the broker may be able to provide in terms of expertise and knowledge in the field.  
 
Hargreaves Lansdown: One of the UK's leading independent financial service providers and asset management specialists. HL offers customers execution in gilts and corporate bonds across a range of accounts.
 
Why invest with Hargreaves Lansdown?
 
  • Low cost - Buy and sell corporate bonds and gilts in a Vantage Account for just £11.95 per deal online, or from £20 per deal over the telephone (1% of the value of the trade, subject to a minimum of £20 and a maximum of £50).
  • Wide investment choice - You're free to make your own investment decisions and choose from a wide range of bonds including government-backed gilts, investment grade corporate bonds and even more speculative, corporate bonds and PIBS.
  • Flexibility - Most corporate bonds and gilts can be held in the Vantage ISA, Junior ISA or SIPP, allowing you to shelter your investments from further tax. However, some Inland Revenue restrictions may apply. Remember, tax rules can change and the reliefs depend on your personal circumstances. They can also be held in the Vantage Fund & Share Account.
  • Bond prices and charts - Access prices and charts for hundreds of corporate bonds, gilts and PIBS in seconds with our search tool.

Open an account with Hargreaves Lansdown here.

The list below features a number of brokers who also offer bond dealing services. Please note. This list is not comprehensive and it may be worth asking your existing stockbroker or wealth manager what he/she can provide.

Investors Intelligence: Invest in a wide selection of Bonds by phone – including Sovereign, Government and Corporate Bonds in USD, EUR and GBP

  • Use up to 95% of a Bonds value as collateral for trading margined products such as Forex and CFDs
  • Take advantage of trade commissions as low as 0.08% (subject to a EUR 80 minimum or equivalent)

ADM Securities: ADM Securities (ADMS) is a specialist broking division of ADM Investor Services International Limited. ADMS offers a highly personal value added service to both Private Clients and Institutions across a broad range of Markets. 

Barclays Stockbrokers: Barclays Stockbrokers is the UK's number one retail stockbroker with over £10 billion assets currently under management. Barclays has been involved in banking and investment management for over 300 years and in over 60 countries.

Castellain Capital LLP: An award winning advisory boutique specializing in discounted and high yield fixed income securities. Castellain offers its clients bespoke high yield fixed income advisory services focused on capital preservation while generating a secure inflation-beating income.

City and Continental LLP. Specialists in fixed income securities with expertise in the fields of illiquid, distressed and exotic debt instruments. Please note, C&C is only able to offer investment services to those customers able to meet the FCA's criteria of Eligible Counterparties or Professional Client. Contact Oliver Butt on 7929 8355 for more information.

Canaccord Genuity Wealth Management. An award winning wealth manager committed to providing private clients with a broad array wealth management solutions, with over £10bn in assets under management. With stockbroking capabilities based around a dedication to the traditional client approach, our fixed income dealing service is enhanced through the use of technology and the latest portfolio management techniques.

 

Good Broker Guide. Guide and comparison tables of the best bond brokers in the UK.

Killik & Co: Founded in 1989 Killik & Co is one of the leading advisory stockbroking firms in the UK, and offers a personal approach to doing business. Killik & Co's Personal Brokers are able to offer advice on a range of asset classes including Corporate Bonds upon which in-house research is produced. Trades can be executed either through the LSE’s Order Book for Retail Bonds or manually through the Killik & Co dealers who have good relationships with most of the major counterparties.

Selftrade: One of the UK’s leading execution-only stockbrokers, offering a wide choice of account types. Online trades in UK and international equities, funds and covered warrants are subject to a flat fee of £12.50. Bonds £12.50 per deal (online) and from £17.50 (telephone). Dedicated fixed income dealers available.

Spread Betting Brokers: A list of spread betting companies that offer trading on fixed income products in the UK, reviews, guides, strategy and resources.

TD Waterhouse: TD Waterhouse UK is a subsidiary of the Toronto-Dominion Bank, North America's 6th largest bank by branches. Established in 1997, TDW is the UK's second largest execution-only broker, servicing approx 200,000 customers with over £3.77 billion in customer assets under management. Customers can invest in fixed interest bonds and gilts through TD Waterhouse's Trading Account, Trading Plus Account, Trading ISA or SIPP Accounts.


Please note, if you are stockbroker offering services to private investors and would like to be included on this list, please contact analysis@fixedincomeinvestor.co.uk. Only applications from regulated firms will be considered.