In a volatile market, a classic risk management strategy is to diversify an investment portfolio with different asset classes. You already know the potential of stocks. Now balance that potential with bonds.

Why trade bonds?

There are two major reasons to trade bonds:

  • Yield
    The most common reason investors trade bonds is to increase the yield of their portfolios. Yield is the total return you can expect to receive if you hold a bond until it matures.
  • Hedge against market risk
    Investors use bonds to diversify their portfolio with fixed income in order to protect their portfolio against a market downturn that can happen with equities.

How to trade bonds at Questrade:

  • View the bonds bulletin for a list of bonds and other fixed income securities available to trade.
  • To place a bond trade, call the trade desk at 1.866.980.9590 and please have the following information ready - the bond's CUSIP or security number, the issuer's name, maturity date, the coupon, and your order details.
  • Subscribe to get the bonds bulletin delivered to you daily.

How much does it cost to trade bonds?

Questrade charges a spread that is built into the price of the bond and varies depending on the individual bond. There is a minimum purchase amount of $5,000 to buy bonds.