FIXED INCOME

1. What is a bond?

A bond is a debt instrument that allows individuals to loan funds to a government or entity in return for original face value and interest at a later point in time. Because they are generally less volatile versus stocks, bonds serve as a core asset class of the financial markets and allow investors to further diversify their portfolios.

2. What types of bonds does Webull offer?

At this time, only US Treasury bonds are available.

3. Where will bonds be displayed after they are purchased?

You will find your bond position in a separate section just below where you normally see your stock and option positions.

4. Which Webull platforms is bond trading available?

Bond Trading is Now Available on all Webull Platforms; Mobile App, Webull Desktop, and WebTrade.

5. What is the coupon rate?

The coupon is the interest rate that is to be paid annually on a bond. If a bond has a coupon rate of 4% and pays interest semiannually, the bond holder should expect to receive interest payments of 2% of face value every six months.

6. What is bond yield?

While there are many iterations (such as Yield-to-Call and Yield-to-Maturity), bond yield is essentially the total return for holding that particular bond to its stated maturity. The coupon, along with the price paid, are among the primary factors that affect the yield of the bond.

7. What does bond maturity mean?

Bond maturity is the time and date when the bond issuer pays the original bond value to the bond holder, plus any remaining accrued interest.

8. What happens if I hold a bond to maturity?

Principal and any owed interest is expected to paid out and reflected in your account on the morning of the bond’s maturity date.

9. What fees are associated with trading bonds?

Please consult our fee schedule for transaction costs associated with trading bonds.

10. What does this mean or how can I read this? “UST 1.75% 06/30/2024 9128286Z8(BOND)”

UST is the Issuer of the Bond; 1.75% is the annual coupon rate, and 6/30/2024 is the maturity date.

11. What accounts are eligible to trade bonds?

Bond trading is available in cash and margin brokerage accounts as well as IRAs.

1. Are bonds available for fractional trading?

Fractional bond trading is coming soon.

2. Can I sell a bond before it reaches its maturity?

Bonds can be sold to a willing buyer before their maturity date in the secondary market.

3. How do I buy/sell a bond?

On the mobile app, clients will go to the Markets button at the bottom of the screen. Towards the top of the screen, select the Bonds icon, select the desired bond. At the bottom left select Trade. The limit price should automatically reflect the latest ask price. In order for the trade to go through it has to be at the ask in order to fill (almost like a market order).

4. What is the markup at the bottom of the screen when I’m placing my trade?

The markup is a fee calculated based on the quantity.

5. What is the Accrued Interest Payable at the bottom of my order entry?

Interest a client would have to pay to the seller.

6. Are treasury bonds taxable?

Interest income from Treasury securities is subject to federal income tax but exempt from state and local taxes. However, if a bond is sold before maturity, any profit or loss incurred from the sale is taxable.

7. What are the trading hours for the bond market?

Currently bonds are tradeable from 7:30 AM EST to 5:00 PM EST

8. What kind of order types are supported for bond trading?

While Webull bond trading is formatted via LIMIT orders, bonds, specifically Treasury bonds, will only get filled if the submitted price matches the listed Ask Price/Bid Price.

9. Can I get a margin call by buying or selling a bond?

Yes, buying or selling stock on margin can trigger a margin call.

10. What is the trading settlement period for bonds?

The settlement time for bond trades is T+1.