You can buy corporate bonds through your brokerage account, directly from some companies, or through bond marketplaces designed for individual investors

Corporate bonds are sold through several channels, and which one works for you depends on whether you want a wide selection, low costs, or bonds from a specific company. Most individual investors use an online brokerage — the same place they might buy stocks — because the process is straightforward and you can see prices in real time. Some people buy directly from the issuing company through their investor relations department. Others use bond-specific platforms that focus on making corporate bonds easier to understand and compare.

The key difference between these routes is cost, selection, and the minimum investment required. A traditional brokerage might charge a commission per bond purchase. A bond marketplace might charge a markup instead. Direct purchase from a company usually has no commission but limits you to that one issuer. Understanding where each type of bond is actually traded — and who sits between you and the seller — will help you choose the right place to start.

Key Takeaways

  • Online brokerages like Fidelity, Charles Schwab, and E*TRADE let you search and buy corporate bonds alongside stocks, with commissions ranging from zero to a few dollars per bond depending on the firm.
  • Bond marketplaces such as Fidelity Fixed Income, Vanguard BondSource, and Schwab BondSource specialize in bonds and often show you the markup or spread you are paying instead of a flat commission.
  • You can buy directly from a company's investor relations department or through its transfer agent, which usually costs nothing but limits you to that single issuer.
  • The secondary bond market — where existing bonds trade between investors — is where most individual purchases happen, not the primary market where new bonds are first issued.
  • Minimum investments typically range from $1,000 to $5,000 per bond, though some platforms accept smaller amounts or let you buy bond funds instead.

Buying through a traditional online brokerage

The easiest entry point for most people is an established brokerage platform you may already use. Fidelity, Charles Schwab, E*TRADE, and TD Ameritrade all offer corporate bond trading through their websites and apps. You log in, search for a bond by issuer name or ticker, see the current price and yield, and place an order just as you would for a stock. Settlement typically happens in two business days.

Commission structures vary. Some brokerages charge zero commission on bond trades. Others charge $1 to $10 per bond, or a small percentage of the purchase price. Call the brokerage directly or check their bond trading page to confirm their current pricing — it changes periodically and may differ based on the type of bond or your account size. The brokerage acts as an intermediary, matching you with a seller on the secondary market.

The advantage is simplicity and a large selection. The disadvantage is that you may not see the full markup or spread the brokerage is earning — it is often buried in the price you see on screen. If you are buying a small number of bonds, the commission or markup is usually your largest cost after the bond's own interest rate.

Using a bond-focused marketplace

Bond marketplaces are platforms built specifically for individual bond investors and try to make the process more transparent. Fidelity Fixed Income, Schwab BondSource, and Vanguard BondSource are the largest. These platforms show you a wider range of corporate bonds than a typical stock brokerage, and they display the markup or spread you are paying more clearly than a traditional brokerage does.

The process is similar to a regular brokerage: you search by company name, rating, maturity date, or yield; you see the price and terms; you place an order. The key difference is transparency. Instead of a hidden commission, you see something like "bid-ask spread: 0.50%" — meaning the difference between what the marketplace paid for the bond and what you are paying. This spread is usually smaller than a traditional commission, but not always.

These platforms often require a minimum investment of $1,000 to $5,000 per bond. Some offer fractional bond ownership or bond funds if you want to invest smaller amounts. If you are comparing prices across platforms, remember that the same bond may have different spreads at different marketplaces, so it is worth checking more than one.

Buying directly from the company

Some companies sell their bonds directly to investors through their investor relations website or a transfer agent. This route has no middleman, so there is no commission or markup. You contact the company, confirm they offer direct purchase, and follow their process — which may involve mailing a check, wiring funds, or using an online form.

The catch is selection and convenience. You can only buy bonds from companies that offer direct purchase, and the process is often slower than an online brokerage. You may also face a higher minimum investment, sometimes $5,000 or more. Direct purchase is most practical if you want to hold a bond to maturity and do not plan to sell it before then, because selling a bond you bought directly usually means going through a brokerage anyway.

To learn about a company sells bonds directly, visit its investor relations page and look for "bond purchase" or "direct purchase" options. If you do not find anything, call the company's investor relations department and ask whether they offer direct sales to individual investors.

Understanding the secondary bond market

Most corporate bonds bought by individuals are purchased on the secondary market — meaning they were issued months or years ago and are now being resold by another investor or a dealer. This is different from the primary market, where new bonds are first sold when a company issues them.

The secondary market is where brokerages and bond marketplaces source their inventory. When you place an order, the platform finds a seller (often a bond dealer) and executes the trade. Prices on the secondary market fluctuate based on interest rates, the company's credit rating, and how much time is left until the bond matures. A bond that pays 4% may be worth more or less than its face value depending on whether current interest rates are higher or lower than 4%.

Buying on the secondary market is normal and expected. You do not need to wait for a new bond issuance. However, it does mean you are paying whatever the current market price is, not the original issue price. This is why comparing prices across platforms matters — the same bond may be priced differently depending on who is selling it and what spread they are charging.

Comparing costs and choosing a platform

Your total cost when buying a corporate bond includes the purchase price (which reflects the bond's yield and the seller's markup), any commission or spread, and the bid-ask spread if you sell before maturity. To compare platforms fairly, get a quote for the same bond from at least two sources and look at the all-in price, not just the commission.

If you are buying a single bond and holding it to maturity, the markup or commission is your main cost concern. If you plan to trade bonds or build a larger portfolio, look for a platform with low or zero commissions and transparent spreads. If you want the simplest experience and do not mind paying a bit more, a traditional brokerage is fine. If you want to see exactly what you are paying, a bond marketplace is worth exploring.

Start by checking whether your current brokerage offers bond trading and what they charge. If the cost is reasonable and the selection is adequate, there is no need to open a new account. If you want more options or lower costs, open an account at a bond marketplace or a brokerage known for competitive bond pricing.

Minimum investments and account requirements

Most corporate bonds have a face value of $1,000, and most platforms require you to buy at least one bond — so your minimum investment is typically $1,000 to $5,000 depending on the bond's current price. Some bonds trade above or below face value, so the actual cost may be higher or lower.

If $1,000 per bond is too much, you have alternatives. Some brokerages and bond marketplaces offer bond funds or bond ETFs, which let you invest smaller amounts and own a diversified portfolio of bonds. You can also look for platforms that offer fractional bond ownership, though this is less common. Bond funds charge an annual expense ratio instead of a per-bond commission, so compare that cost against what you would pay buying individual bonds.

You will need a brokerage account to buy bonds through any platform. Opening an account is free and usually takes 10 to 15 minutes online. You will need to provide your Social Security number, address, and employment information. Some platforms have account minimums (often $0 to $2,500), but many do not.

Frequently Asked Questions

Can I buy corporate bonds through my bank?

Many banks offer bond trading through their brokerage services, but it is usually not their main focus. You will often find better selection and lower costs at a dedicated brokerage or bond marketplace. If your bank does offer bonds, ask about their commission structure and compare it to Fidelity, Schwab, or Vanguard before deciding.

What is the difference between buying a bond and a bond fund?

A bond fund pools money from many investors and buys a diversified portfolio of bonds. You own a share of the fund, not individual bonds. Individual bonds give you predictable income and return of principal at maturity, but require a larger upfront investment and offer less diversification. Bond funds are more liquid (easier to sell quickly) but charge annual fees.

Do I need to hold a corporate bond until maturity?

No. You can sell a corporate bond before maturity through your brokerage, just as you would sell a stock. The price you receive depends on current interest rates and the bond's credit rating. If interest rates have risen since you bought it, you may receive less than you paid. If they have fallen, you may receive more.

How do I know if a corporate bond is safe?

Check the bond's credit rating from agencies like Moody's, Standard & Poor's, or Fitch. Ratings range from AAA (safest) to D (in default). Most brokerages and bond marketplaces display the rating alongside the bond's price and yield. Read the rating agency's report to understand why the bond received that rating and what risks it carries.

Can I buy corporate bonds through a retirement account like an IRA?

Yes. Most IRAs allow bond purchases through the brokerage platform associated with your account. Buying bonds in a retirement account means the interest income is tax-deferred (or tax-free in a Roth IRA). Check with your IRA provider to confirm they offer bond trading and whether there are any restrictions on the types of bonds you can buy.