Best Brokers For Bonds

Written By

Rebecca Holden

Written By

Rebecca Holden

Rebecca is an investment writer and broker analyst. She has evaluated dozens of brokers and trading platforms. Rebecca formerly worked in e-commerce where she helped grow the online presence of some of the UK's largest brands.

» Rebecca Holden Profile Page

Edited By

James Barra

Edited By

James Barra

James is an investment writer with a background in financial services. He has worked as a management consultant, where he delivered large-scale operational transformational programmes at some of Europe's biggest banks. James authors, edits and fact-checks content for a series of investing websites.

» James Barra Profile Page

Updated

Oct 21, 2023

Investors trade bonds for profit by capitalizing on changes in government or corporate bond values. This guide features our pick of the best bond trading brokers, selected after thorough review, comparison, and ranking.

Best Brokers For Bonds 2024

Based on our assessment, these are the 5 best bond trading accounts:

1. AvaTrade
2. IC Markets
3. CityIndex
4. eToro
5. Interactive Investor

Best Brokers For Bonds Comparison

Best Brokers For Bonds Comparison

Broker	Bonds	Minimum Investment	Regulators	Cost Rating	Overall Rating	Visit
	✔	-	ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM	3.9 / 5	4.9 / 5	Visit
	✔	$200	ASIC, CySEC, FSA	4.6 / 5	4.8 / 5	Visit
	✔	$0	ASIC, FCA, MAS	4.2 / 5	4.4 / 5	Visit
	✔	$50	FCA, ASIC, CySEC, FSA, FSRA, MFSA	3 / 5	4.1 / 5	Visit
	✔	£0	FCA	2 / 5	4.6 / 5	Visit
	✔	$0	FCA, ASIC, FSCA, SCB, FSA	3.3 / 5	4.4 / 5	Visit
	✔	$0	FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA	4.4 / 5	4.4 / 5	Visit
	✔	$50	FCA, ASIC, FSCA, VFSC	4.1 / 5	4.7 / 5	Visit
	✔	$0	FCA, ASIC, MAS, CIRO, BaFin, FMA, DFSA	4.2 / 5	4.7 / 5	Visit
	✔	$100	FCA, CySEC, ASIC, FSCA, FSC	3 / 5	4.4 / 5	Visit
	✔	$0	FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB	4.3 / 5	4.3 / 5	Visit
	✔	$200	ASIC, FSCA, SVGFSA	2.5 / 5	4 / 5	Visit
	✔	$50	FSCA, ASIC, FSA	2.5 / 5	4.4 / 5	Visit
	✔	£0	FCA	-	3.5 / 5	Visit
	✔	$0	CIRO	-	3.6 / 5	Visit

#1 - AvaTrade

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Review

Why We Chose AvaTrade

AvaTrade offers European and Japanese bond trading through CFDs, allowing users to speculate on rising and falling prices. Spreads on treasuries are tight and leverage up to 1:5 is available, amplifying both returns and losses. AvaTrade excels by offering bonds on MT4 and MT5 – platforms that are great for short-term traders and algo traders.

"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."

- DayTrading Review Team

• Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Crypto, Spread Betting
• Regulator: ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM
• Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
• Minimum Trade: 0.01 Lots
• Leverage: 1:30 (Retail) 1:400 (Pro)

About AvaTrade

AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for day trading, alongside a comprehensive education center and multilingual customer support.

Pros

• The broker offers reliable 24/5 multilingual customer support with fast response times during testing
• There's a great range of fee-free deposit methods, including bank wire, credit cards and popular e-wallets like Skrill
• Automated trading is supported through MetaTrader Expert Advisors (EAs), as well as the AvaSocial and DupliTrade tools

Cons

• A high $2000 minimum investment is required to use DupliTrade, which will be out of reach for many beginners
• Traders from the US are not accepted
• There’s an above-average $50 inactivity fee after three months, though this won't impact active day traders

Visit AvaTrade

#2 - IC Markets

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Review

Why We Chose IC Markets

IC Markets offer trading on 9 bonds with deep liquidity and excellent pricing. The broker also stands out by offering very high leverage up to 1:200, alongside access to leading charting platforms MT4 and MYT5

"IC Markets offers superior pricing, exceptionally fast execution and seamless deposits. The introduction of advanced charting platforms, notably TradingView, and the Raw Trader Plus account, ensures it remains a top choice for intermediate to advanced day traders."

- DayTrading Review Team

• Instruments: CFDs, Forex, Stocks, Indices, Commodities, Bonds, Futures, Crypto
• Regulator: ASIC, CySEC, FSA
• Platforms: MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade
• Minimum Deposit: $200
• Minimum Trade: 0.01 Lots
• Leverage: 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global)

About IC Markets

IC Markets is a globally recognized forex and CFD broker known for its excellent pricing, comprehensive range of trading instruments, and premium trading technology. Founded in 2007 and headquartered in Australia, the brokerage is regulated by the ASIC, CySEC and FSA, and has attracted more than 180,000 clients from over 200 countries.

Pros

• You have access to over 2,250 CFDs across various markets, including forex, commodities, indices, stocks, bonds, and cryptocurrencies, allowing for diversified trading strategies.
• IC Markets offers fast and dependable 24/5 support based on firsthand experience, particularly when it comes to accounts and funding issues.
• IC Markets offers among the tightest spreads in the industry, with 0.0-pip spreads on major currency pairs, making it especially cost-effective for day traders.

Cons

• There are fees for certain withdrawal methods, including a $20 wire charge, which can eat into profits, especially for frequent withdrawals.
• Interest isn't paid on unused cash, an increasingly popular feature found at alternatives like Interactive Brokers.
• While IC Markets offers a selection of metals and cryptos for trading via CFDs, the range is not as extensive as brokers like eToro, limiting opportunities for traders interested in these asset classes.

Visit IC Markets

#3 - CityIndex

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Review

Why We Chose CityIndex

City Index remains a top choice for bond CFD traders, thanks to its commission-free pricing model and competitive spreads from 0.02 points. There’s a wealth of bond market news and analysis to utilize, including the Trading Central dashboard. Beginners can also get started easily with no minimum deposit, or experience the bond market risk free in the 12-week demo.

"City Index is best for new and intermediate traders looking for a wide selection of assets on user-friendly platforms."

- DayTrading Review Team

• Instruments: CFDs, Forex, Stocks, Cryptos, Options, Commodities, Bonds
• Regulator: ASIC, FCA, MAS
• Platforms: MT4, TradingView, TradingCentral
• Minimum Deposit: $0
• Minimum Trade: 0.01 Lots
• Leverage: 1:30 (Retail), 1:50 (Accredited Investor), 1:200 (Sophisticated Investor), 1:300 (Wholesale Investor), 1:400 (Professional Trader). Varies with jurisdiction.

About CityIndex

City Index is an established and award-winning forex, CFD and spread betting broker with top-tier global regulation, including in the UK (FCA) and Australia (ASIC). With 30+ years in the industry, 13,500+ instruments and 24/5 customer support, City Index is a solid pick for aspiring traders.

Pros

• Tight spreads from 0.5 pips on EUR/USD and competitive commissions on CFD shares
• A free demo account with unrestricted access to all markets and trading tools
• Excellent reputation with over 1 million account holders and tier-one regulatory oversight

Cons

• $15 monthly inactivity fee
• US traders not accepted
• No Islamic account for Muslim traders

Visit CityIndex

#4 - eToro

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Review

Why We Chose eToro

You can trade bonds at eToro by investing in ETFs and its YieldGrowth Smart Portfolio. Simple to navigate, they offer the advantages of fixed-income products with one-click access.

"eToro's social trading platform leads the pack with a terrific user experience and active community chat that can help beginners find opportunities. There are also competitive fees on thousands of CFDs and real stocks, plus excellent rewards for experienced strategy providers."

- DayTrading Review Team

• Instruments: CFDs, Forex, Stocks, ETFs, Cryptos, Futures, Commodities, Bonds
• Regulator: FCA, ASIC, CySEC, FSA, FSRA, MFSA
• Platforms: eToro Web, CopyTrader, TradingCentral
• Minimum Deposit: $50
• Minimum Trade: $10

About eToro

eToro is a top-rated multi-asset platform which offers trading services in thousands of CFDs, stocks and cryptoassets. Launched in 2007, the brand has millions of active traders globally and is authorized by tier one regulators, including the FCA and CySEC. The brand is particularly popular for its comprehensive social trading platform. Cryptoasset investing is highly volatile and unregulated in the UK and some EU countries. No consumer protection. Tax on profits may apply. 76% of retail accounts lose money.

Pros

• There's a comprehensive online training academy with accessible resources, from bitesize articles to comprehensive courses
• The broker's services are great for beginners, with commission-free stock trading, a low minimum deposit and an unlimited demo
• Charts are powered by TradingView and offer strong technical analysis features, including 9 chart types and over 100 indicators

Cons

• Traders will face currency conversion fees for account denominations other than USD
• There are no guaranteed stop loss orders which would be a useful risk management feature for beginners
• There are limited contact methods aside from the in-platform live chat

Visit eToro

#5 - Interactive Investor

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Review

Why We Chose Interactive Investor

Interactive Investor offers an impressive selection of 90+ UK bonds and gilts - plenty for investors to build a diversified portfolio. For a flat monthly account fee, traders can hold their bonds in a SIPP, ISA, JISA or regular trading account, with a reasonable £3.99 fee per trade. The broker’s investment app is feature-rich yet suitable for beginners.

"Interactive Investor is an excellent pick for UK traders interested in longer-term investing products like ISAs and SIPP accounts. The low fixed fees for large portfolios and 40,000+ stocks will also appeal to traders with a decent bankroll."

- DayTrading Review Team

• Instruments: Stocks, Funds, Trusts, ETFs, Bonds, Gilts, VCTs
• Regulator: FCA
• Platforms: Own
• Minimum Deposit: £0
• Minimum Trade: £25

About Interactive Investor

Interactive Investor are a hugely respected, FCA-regulated investing firm. The trading platform is easy-to-use while the sign-up and deposit process is straightforward for new investors. ii also has a long track record and a string of industry awards under its belt.

Pros

• Excellent market research
• User-friendly investment app
• Multiple payment methods including bank cards

Cons

• No free demo account
• No copy trading tools

Visit Interactive Investor

Comparing Bond Brokers

To find the best bond brokers, we evaluate firms across several categories:

The Number Of Bonds

Top brokers offer a range of bonds, sometimes thousands, helping investors build diverse portfolios.

Our analysis found that most bond brokers offer access to several types of bonds, including:

• Government Bonds – Generally deemed the safest, these are debt securities issued by governments to support public spending and obligations. Importantly, brokers may use different terms to describe government bonds. US bonds, for example, are often known as treasuries, while UK bonds are frequently called gilts, and debt instruments issued by the German government are known as bunds.
• Corporate Bonds – Riskier than government bonds, these debt instruments are used by companies to raise funds for various purposes, such as expansion. The quality and risk of corporate bonds vary depending on the creditworthiness of the firm. Investment-grade corporate bonds are usually safer but often come with lower yields, whilst junk bonds are riskier but tend to offer higher returns.

Also important is the vehicle you can use to speculate on bond values. For short-term speculation, contracts for difference (CFDs) and spread betting are popular, allowing users to speculate on prices without owning the underlying bond. For longer-term investing, you can buy bonds directly or deal in exchange-traded funds (ETFs).

The Fees To Trade Bonds

The best bond brokers offer low fees with no hidden charges.

Our testing shows that many firms charge a transaction fee, known as a commission. Low-cost platforms charge commissions of <1% or <$10. Fees may also be shown as a spread, especially if you trade bond CFDs. Here, sub 1 point is competitive.

Importantly, we look for any volume discounts that can bring costs down. Our team also evaluate non-trading fees, which can take the form of account opening and maintenance fees, deposit and withdrawal charges, plus inactivity penalties.

The Minimum Investment

The top bond brokers offer an accessible minimum deposit, lowering the entry barrier.

Our research shows that many top bond brokers accept new traders with a minimum deposit of <$200. With that said, some firms have no minimum deposit, making them a good option for beginners.

Importantly, we balance a low minimum deposit with the quality of the investment tools and market research. We have found that sometimes it is worth investing more upfront to access higher-quality tools.

The Platforms And Tools

Our top-rated bond brokers offer easy-to-use platforms with excellent market research tools.

When we test bond brokers, we look for user-friendly platforms and apps that allow investors to analyze markets and manage trades. The best software will help you find bonds that align with your financial goals and risk appetite.

Our team also consider the availability of additional resources for bond traders, whether expert commentary on the maturity, yield, and quality of bonds, or tools to help investors calculate potential returns and fees.

The Broker’s Regulatory Status

We only recommend bond brokers that we trust.

Several factors impact the trust rating we assign brokers. The most important of which is whether the brokerage is regulated by a respected financial body. Investing through a tightly regulated bond broker will help protect you from scams and unfair practices.

Among the most respected regulators are the US National Futures Association (NFA), US Commodity Futures Trading Commission (CFTC), UK Financial Conduct Authority (FCA), and Australian Securities & Investments Commission (ASIC).

Our team also factor in the reputation of the bond broker and look for signs of credibility, such as being listed on a stock exchange or part of a banking institution.

FAQ

What Is A Bond Broker?

A bond broker is an intermediary that provides a platform where you can buy, sell and speculate on bond values.

Our analysis shows that the best bond brokers offer a large number of bonds, a choice of investing vehicles, transparent fees with low commissions, and oversight from a trusted regulator.

Do I Need To Open An Investing Account To Buy Bonds?

To invest in bonds, you generally need to open an account with an online broker.

When you have completed the sign-up requirements and satisfied any minimum deposit requirements, you can purchase or trade bond instruments through the firm’s investing platform or mobile app.

Which Is The Best Bond Broker?

We have compiled a list of our best bond brokers. We considered several factors, including the number and type of bonds available, fees on bond instruments, the minimum investment, plus the quality of the platforms and tools.

Importantly, we also checked the broker’s regulatory credentials and reputation. Only bond brokers we trust make our rankings.

What Types Of Bonds Do Brokers Offer?

The types of bonds available to traders will vary between online brokers. However, top-rated brokers offer a selection of government, corporate, and fixed bonds, plus a choice of investment vehicles, such as CFDs, ETFs, and spread bets.