Exclusions may apply and E*TRADE reserves the right to charge variable commission rates. Brokered CDs from multiple banks can be held in a brokerage account, increasing your total FDIC coverage.Į*TRADE charges $0 commission for online US-listed stock, ETF, mutual fund, and options trades. These securities are FDIC insured up to $250,000 per depositor, per insured bank, for each ownership category. Brokered CDs - Brokered certificates of deposit (“CDs”) are similar to bank CDs, with the added benefit that they can be bought and sold in the secondary market penalty-free.These bonds typically provide higher yields than investment-grade bonds, but have a higher risk of default. High-yield - Bonds with ratings below BBB are often referred to as “junk” bonds.Because the interest they pay is fully taxable, corporates may be a sound choice for IRAs or other tax-deferred accounts.

Treasury securities, although they may entail a greater risk of default. These bonds typically offer higher yields than municipal or U.S.

Corporate - Many public and private companies issue bonds to help finance their ongoing operations.

Interest income is typically free from federal income taxes, and if held by an investor in the state of issuance, may be exempt from state and local taxes as well.

Municipal - Municipal bonds, or “munis”, are debt securities issued by state or local governments to finance public projects.

However, each issuer has unique features as to potential risks and tax benefits. Because of their government affiliation, agency bonds are considered to be safe.

Agency - Agency bonds, commonly known as 'agencies', are debt securities issued by US government sponsored agencies for public purposes, such as increasing home ownership or supporting small businesses.

Backed by the full faith and credit of the federal government, they are considered to be the safest of all investments. Treasury - Treasury bonds, often referred to as “Treasuries”, are debt instruments issued by the US government (and as such are exempt from state and local taxes).

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