You can buy corporate bonds through brokerages, bond platforms, and some banks — each route has different minimums, fees, and bond selection

Corporate bonds are sold through several channels, and which one works for you depends on how much you want to invest, whether you want individual bonds or a fund, and how much trading you plan to do. A traditional brokerage like Fidelity or Charles Schwab lets you buy individual bonds and bond funds in the same account you might use for stocks. Online bond platforms like Vanguard BondEdge or Fidelity's bond-specific tools show you bonds sorted by maturity, credit rating, and yield. Some banks sell bonds directly to their customers. Each path has different minimums — some platforms require $1,000 per bond, others $5,000 or more — and different fee structures.

The choice between individual bonds and bond funds changes where you shop. If you want to own a specific bond and hold it to maturity, you need a brokerage that trades individual corporate bonds. If you want diversification without picking individual bonds, a bond fund or exchange-traded fund (ETF) is simpler and available through almost any brokerage. The platform you choose also affects what you pay in commissions and whether you can see the bonds available before you commit.

Key Takeaways

  • Full-service brokerages like Fidelity, Charles Schwab, and E*TRADE let you buy individual corporate bonds and bond funds in one account, with minimums typically between $1,000 and $5,000 per bond.
  • Discount brokerages and robo-advisors have lower account minimums but may offer fewer individual bond choices or charge higher per-bond fees.
  • Bond-specific platforms like Vanguard BondEdge and some bank bond desks show you available bonds before you buy and may offer better pricing on large purchases.
  • Bond funds and ETFs require no minimum per holding and spread your money across many bonds, making them simpler than picking individual bonds yourself.
  • Commissions, markups, and bid-ask spreads vary by platform and bond type, so comparing costs across two or three brokerages before buying is worth the time.

Full-Service Brokerages: Fidelity, Charles Schwab, E*TRADE, and Merrill Edge

These brokerages let you buy individual corporate bonds and bond funds in the same account where you hold stocks. Fidelity has one of the largest inventories of corporate bonds available to retail investors — you can search by issuer, maturity date, credit rating, and yield, and see the bid and ask prices before you commit. Charles Schwab offers a similar bond-trading platform with a $1,000 minimum per bond and shows you available inventory in real time. E*TRADE and Merrill Edge (Bank of America's brokerage) both support individual bond purchases, though their bond selection is smaller than Fidelity's.

The main advantage of these platforms is that they combine bonds with other investments in one place. If you already have a brokerage account, you can add bonds without opening a new account. The downside is that commissions and markups vary. Some brokerages charge a flat commission per bond ($1 to $10), while others use a markup on the bond price itself — meaning you pay a hidden fee built into the price you see. Ask the brokerage directly what you will pay in total cost before you buy.

Account minimums at these brokerages are usually $0 to open, but individual bond purchases often require $1,000 to $5,000 per bond. If you want to buy multiple bonds, the cost adds up quickly. Some brokerages waive commissions on certain bond funds but charge for individual bonds, so check their fee schedule for the specific bond you want.

Online Bond Platforms and Bond-Specific Tools

Vanguard BondEdge, Fidelity's bond tools, and Schwab's bond platform are designed specifically for bond shopping. These tools let you filter bonds by maturity, credit rating, coupon rate, and yield, and they show you the bonds available in their inventory before you buy. Vanguard BondEdge is open only to Vanguard customers and focuses on Vanguard bond funds, but it also shows individual bonds from other issuers. Fidelity's bond platform is open to anyone with a Fidelity account and has the largest selection of individual corporate bonds available to retail investors.

The advantage of these platforms is transparency: you see what bonds exist, what they pay, and when they mature before you decide. You can compare bonds side by side and understand exactly what you are buying. The disadvantage is that they require you to have an account with that brokerage, and some have higher minimums or charge more per trade than others.

Some platforms also offer bond laddering tools, which help you buy bonds that mature at different times so you get regular payments back. This is useful if you want to build a predictable income stream without managing individual bonds yourself.

Banks and Direct Bond Offerings

Some banks, particularly larger ones like JPMorgan Chase and Bank of America, have bond desks that sell corporate bonds directly to customers. If you bank with one of these institutions, you can call the bond desk and ask what bonds they have available. The advantage is that you may get personalized service and access to bonds that are not listed on public platforms. The disadvantage is that minimums are often higher — sometimes $5,000 to $25,000 per bond — and you have less transparency about pricing.

Bank bond desks typically work best if you are buying a large amount or want bonds from a specific issuer. They may also offer better pricing on large purchases because they can negotiate directly with the issuer or other dealers. However, you should still compare the total cost (including any markup) to what you would pay through a brokerage before you commit.

Bond Funds and ETFs: Lower Minimums, Less Picking

If you do not want to pick individual bonds, bond funds and ETFs let you own a basket of corporate bonds with a single purchase. A bond fund is a mutual fund that holds many corporate bonds; an ETF is similar but trades like a stock on an exchange. Both are available through any brokerage and typically have no minimum per holding — you can buy as little as one share of an ETF or one unit of a fund.

The advantage is simplicity: you do not have to research individual bonds, decide when to sell, or worry about a single bond defaulting. The disadvantage is that you pay an annual fee (called an expense ratio) to the fund manager, typically 0.05% to 0.50% per year depending on the fund. You also do not know exactly which bonds the fund holds at any given moment, though most funds publish their holdings daily or weekly.

Bond funds are useful if you want diversification without the work of managing individual bonds, or if you have less than $5,000 to invest (since individual bonds often require higher minimums). ETFs tend to have lower fees than mutual funds and trade throughout the day like stocks, while mutual funds trade only once per day at the closing price.

Comparing Costs Across Platforms

The total cost of buying a corporate bond includes the commission (if any), the bid-ask spread, and any markup the brokerage adds. The bid-ask spread is the difference between the price a buyer will pay and the price a seller will accept — it is built into the bond price and goes to the dealer, not to you. A wide spread means you pay more to buy and receive less to sell.

To compare costs, get a quote for the same bond from two or three brokerages and ask for the total cost you will pay, including all fees and spreads. Some brokerages publish their markups; others do not. If a brokerage will not tell you the total cost upfront, that is a sign to shop elsewhere. For bond funds and ETFs, compare the expense ratio (the annual fee) and any trading commissions.

Individual bonds from highly-rated issuers (like Apple or Microsoft) typically have tighter spreads and lower costs than bonds from less-known companies. If you are buying a bond from a smaller issuer, expect to pay more in spread and markup.

Account Types and Tax Treatment

You can buy corporate bonds in a regular taxable brokerage account, a retirement account (like an IRA or 401(k)), or a college savings account (like a 529 plan). The account type affects how you are taxed on the interest you earn. In a taxable account, you pay federal income tax on the interest each year. In a traditional IRA or 401(k), you pay no tax until you withdraw the money. In a Roth IRA, you pay no tax on the interest at all.

Most brokerages let you buy corporate bonds in any account type, but some retirement accounts have restrictions on what you can buy. Check with your brokerage about what bonds are available in your specific account before you open it.

Frequently Asked Questions

Can I buy corporate bonds with less than $1,000?

Yes, through bond funds or ETFs, which you can buy in any amount. Individual corporate bonds typically require a $1,000 to $5,000 minimum per bond, though some brokerages occasionally offer smaller amounts. If you have less than $1,000, a bond fund or ETF is your best option.

What is the difference between buying a bond through a brokerage and buying it directly from the company?

Most companies do not sell bonds directly to individual investors — they sell through dealers and brokerages. Buying through a brokerage gives you access to a wider selection and the ability to sell before maturity. There is no "direct" option for most corporate bonds.

Do I pay commissions every time I buy or sell a bond?

It depends on the brokerage. Some charge a flat commission per trade ($1 to $10), some charge a percentage of the bond price, and some build the cost into the bid-ask spread. Ask your brokerage for the total cost before you buy, including any hidden markups.

Which brokerage has the lowest fees for buying corporate bonds?

Fidelity and Charles Schwab generally have competitive pricing and large bond inventories, but fees vary by bond type and issuer. Compare quotes from at least two brokerages for the specific bond you want to buy before deciding.

Can I buy corporate bonds through my bank?

Yes, many banks have bond desks that sell corporate bonds to customers. However, minimums are often higher ($5,000 to $25,000 per bond) and pricing may be less transparent than through a brokerage. Compare the total cost to what you would pay through a brokerage before committing.