CD & Bond Trading
1. Under the Trade tab of your Scottrade account, click CDs & Bonds in the left side menu.
2. To go to the Bond Center, choose the Use our Bond Laddering Tool on the CDs & Bonds default page or click Bond Laddering Tool from the Bonds tab drop-down box.
3. Complete the six-step bond ladder process.
Step One: Investment Type
Indicate whether you would like to invest in taxable or non-taxable (or both) in the drop down box.
Step Two: Select Bond Types
Check the box to the left of each type of bond you would like to invest in.
Step Three: How Much Do You Want to Invest?
Enter the monetary amount you would like to invest in your bond ladder.
Step Four: Investment Horizon
Decide the time length of your ladder, date of the first principal payment, and how many bonds you would like to build your ladder with by using the drop-down boxes offered.
Step Five: Safety Level
Choose a desired safety level based on the bond ratings chart.
Step Six: State
Depending on the criteria you have entered, you may be asked to enter the state in which you live (this is only relevant to municipal bond investing).
4. Click the purple Get Results button on the lower right side of your screen.
5. Select the bonds you wish to include in your ladder from the results offered.
6. Click Buy This Ladder to view an Order Form of your purchase.
7. Click the Review button on the right side of the screen to review all the sale information for accuracy.
8. If your order is correct, click Submit Orders to finalize the purchase of your bond ladder.
Bonds involve risks including, but not limited to interest rate risk, reinvestment risk, inflation risk, call risk, liquidity risk, credit risk, market risk, default risk, event risk and a risk of loss of principal. New issue offerings are sold by prospectus or offering circular available at www.scottrade.com. Investors should read these carefully.
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