New Rules Require Brokers To Disclose Commissions On Bond Trades | Forbes

I cannot count how many times I’ve heard investors brag about all their no commission bond trades. Maybe they thought if they said it enough times, it would come true. It is not true now, nor has it ever been true.

The regulators allowed the industry to drag its feet for years—until May 14, 2018.

If you examine your trade confirmation, here is some of the new information it will contain: execution time, mark-up in dollars and in percent, net price with the mark-up, and yield.

Fidelity has spent time in studying the situation. If you go to Fidelity’s web site they pitch you on “How We Stack Up Against The Competition.” The really juicy information resides in their footnotes and the accompanying pdf files. These give you a tutorial on the MSRB and TRACE systems and a third party bond pricing study. All are valuable information for do-it-yourself investors.

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New Rules Require Brokers To Disclose Commissions On Bond Trades.