Getting a quote from many different brokers on bonds is very important to you, both as a buyer or a seller, for many reasons. First of all, this creates competition, which is the best way for you to get a low price. Second, this gives you access to a lot more brokers and what they have to offer. And third, this can give you the information you need to get with not only the broker who offers the best rates, but the broker who has the most diversified portfolio. So, here is how you go about getting quotes from different brokers.

First, you  need to get an online account with a broker who is robust. This means that you need to sign on with a broker who allows you to do not only bonds, but equities, ETFs, funds, and even bank products. Make sure the broker has a diversified portfolio for you to work with.

Second, you need to make sure that your online broker takes part in the larger bond trading platforms. Just call them or browse their website to find this out.

Third, you need to submit an “offer wanted request” to buy certain bonds. Then, wait ten to thirty minutes for the offers to come in. Keep in mind that you are looking for dealers to come to you with a dollar price and also a yield in mind.

Keep in mind that if the bonds you are wanting to buy are lesser rated or distressed, you might not get many offers on them. That is because liquidity dries up very fast in the bond market, and dealers will rarely respond when you are dealing with something below single-A.  So, getting quotes will not necessarily produce miracles, but can offer you a good advantage when dealing with a very highly rated bond.