You can buy bonds only from a registered investment representative (sometimes known as a stockbroker). Investment representatives work for investment firms (sometimes known as brokerage firms), which are also registered. You can buy and sell bonds through a full-service firm or a discount brokerage firm.
1. Open an account
You can open an investment account through a full-service or discount brokerage firm. You may also choose to open a registered account, such as a Tax-Free Savings Account (TFSA), a Registered Retirement Savings Plan (RRSP) or a Registered Retirement Income Fund (RRIF).
2. Place your order
You can give your investment firm instructions to buy or sell a bond in person, by phone or online. This is called placing your order. Tell the investment firm the name and amount of the bond you want to buy or sell. If it’s a new issue of bonds, the price is often the face value. Otherwise, you’ll buy or sell a bond at the current market price.
Once your order is filled, the investment firm will send you a record of the transaction by e-mail, fax or mail. It will confirm:
- what you bought or sold,
- the price you paid or received, and
- any accrued interest on the bond.