Easily buy bonds at incredibly low fees

Bonds are fixed income securities issued by governments, corporations, or other entities to raise funds. When you purchase a bond, you are effectively lending money to the issuer in exchange for regular payments of interest, known as coupons. At maturity, the issuer repays the principal amount, often referred to as the bond’s face value or par value. Bonds are considered relatively less risky than other investments and can provide steady income while diversifying your portfolio. However, they are not risk-free, as investing involves risk of losing invested capital.

On our platform, you can invest in a wide range of bonds, including:

• Government bonds: Issued by national governments to finance public projects, often considered less risk y than corporate bonds.
• Corporate bonds: Issued by companies and generally offer higher returns but carry a higher level of risk compared to government bonds.

A DEGIRO account allows you to explore options across major markets and invest at incredibly low fees at just €2 commission + €1 handling fee per trade. Additional costs like currency conversion, spread costs, or connectivity fees may apply.

Although bonds are often considered as relatively less risky than other investments , they are not risk-free. Key risks to consider include:

• Credit risk: The risk of the bond issuer defaulting.
• Interest rate risk: Bond prices can decrease when interest rates rise.
• Liquidity risk: Some bonds may be harder to sell at a fair price before maturity.
• Inflation risk: Inflation can erode the purchasing power of fixed coupon payments over time.

Diversifying your investments and ensuring they align with your knowledge and experience can help to reduce risk.

At the bond’s maturity date, the issuer repays the principal amount (face value) of the bond to the investor. By this point, you will have received regular coupon payments for the duration of the bond’s term. Maturity signifies the completion of the bond’s lifecycle, with no further payments to the investor.

Yes, most bonds can be sold before maturity. With us, you can place orders to sell bonds on the platform at current market prices. However, it’s important to note that the selling price may differ from the purchase price depending on market conditions, interest rate changes and other factors. Liquidity varies among bonds, meaning that not all bonds can be sold with the same ease.