: Issued by state and local governments; interest is often free from federal income tax and sometimes state/local taxes.
: Issued by companies to fund operations; these typically offer higher yields but carry more default risk than government bonds.
: Similar to bank CDs but can be traded on the secondary market without early withdrawal penalties.
: Debt securities issued by government-sponsored entities like Fannie Mae or Freddie Mac.
E*TRADE utilizes a split fee structure based on whether you are buying new issues or trading on the secondary market. Transaction Type Fee / Commission Online Secondary Trades (Other Bonds) $1.00 per bond ($10 min / $250 max) New Issues (Non-Treasury) $0 (included in offering price concession) Broker-Assisted Trades Online price + $20 commission Step-by-Step Guide to Buying Bonds
: Includes T-bills (short-term), T-notes (intermediate), and T-bonds (long-term), which are exempt from state and local taxes.
E*TRADE supports a wide variety of fixed-income assets, allowing for diverse portfolio strategies:
: Often called "junk" bonds, these carry ratings below BBB and offer higher potential returns for higher risk. Trading Fees and Commissions