Is there any advantage to buying T-bills through your brokerage firm vs Treasury Direct? Do you pay a commission if you purchase through your broker? Is there a difference in the speed of the redemption process? Can you have funds to trade faster if you have T-bills in brokerage firm account?
T-bills Treasury Direct vs Broker
- Thread starter Ayn Rand
- Start date
I haven't bought T-bills in a brokerage account in a long time, but it used to be the case that could use that money in the margin available calculation if that would be a need, and not sure that still holds true. Through Treasury Direct obviously that money isn't in the brokerage account.
This past year I converted my In Laws paper T-Bonds to the TD system. Other than the pain of entering them all, the system was pretty good. A few have been cashed by the system and I went in and transferred the money and it occurred seamlessly. I also had to call with a couple questions and other than the hold time, the people were very helpful.
I know this isn't a direct answer, but hopefully somewhat helpful.
This past year I converted my In Laws paper T-Bonds to the TD system. Other than the pain of entering them all, the system was pretty good. A few have been cashed by the system and I went in and transferred the money and it occurred seamlessly. I also had to call with a couple questions and other than the hold time, the people were very helpful.
I know this isn't a direct answer, but hopefully somewhat helpful.
I called my broker and also went on the Treasury Direct website. There is no commission to buy T-bills in the primary market, either broker of TD. Treasury Direct does not directly handle selling of T-bills before maturity - secondary market. You need a brokerage firm to sell before bills mature.
From the Treasury Direct Web Site - "To sell a bill you hold in TreasuryDirect or Legacy Treasury Direct, first transfer the bill to a bank, broker, or dealer, then ask the bank, broker, or dealer to sell the bill for you."
Given the above I am going to buy and sell via my brokerage account. FYI - Treasure bills count toward your account balance. Funds from selling T-bills are available the same day for trading. Not sure if this is instantaneous or with a lag. I think you would have to wait a day to transfer out of your brokerage account.
Cost of selling T-bills via brokerage in the seconday market is $1 per bill. They seem to only have $1,000 T- bills? Not sure why?
From the Treasury Direct Web Site - "To sell a bill you hold in TreasuryDirect or Legacy Treasury Direct, first transfer the bill to a bank, broker, or dealer, then ask the bank, broker, or dealer to sell the bill for you."
Given the above I am going to buy and sell via my brokerage account. FYI - Treasure bills count toward your account balance. Funds from selling T-bills are available the same day for trading. Not sure if this is instantaneous or with a lag. I think you would have to wait a day to transfer out of your brokerage account.
Cost of selling T-bills via brokerage in the seconday market is $1 per bill. They seem to only have $1,000 T- bills? Not sure why?
ETRADE's minimum is five grand. Service is abysmal too.
Treasury direct yields...the yield computation for TD is as convoluted their 4000 page Federal budget...
No it is not. Yield should be the same as what Treasury Dept published. Investment Rate is ACT/365, high rate is ACT/360.
I have no access to Treasury Direct.
I recently discovered the availability of buying US Gov bonds directly through my account with Interactive Brokers, and I am VERY happy about it.
Yes, small.
Calmly hold bonds (including TIPs!) till expiration and not worry about fluctuations in their price. This is a dream come true!
You shouldn't pay commission on new issues bills/bonds. Treasury pay them already from the sales proceeds. Fidelity doesn't charge commissions.