Bid/Offer spread

Do you have faith in the bid/offer spread prices quoted for retail bonds, where you are on the telephone to a broker?
I held the same bond with two suppliers. Sold with Selftrade (online quote) ca 111. Phoned up You Invest (AJ Bell) a minute later and was quoted 110 to sell (110-112 spread was quoted). Put in a limit order at 111 and was matched at 111.

Comments

  • Hmmm. That's not good news is it? Presumably the broker was just quoting off the screen or was he also on the phone to a MM and getting a firm price from them?

    Either way it's not what we want or expect. A minus for AJ Bell (who I have an account with) and a plus for brokers which allow bond dealing online.
  • I presume it was a price off the screen, but wouldn't you have thought that they have access to live prices?
  • That's not the first time I have experienced that with the same firm after checking the quote on selftrade.
  • I always check the prices with the LSE before i go ahead with a deal for exactly the same reasons as above
  • I use the bid-offer prices on LSE as a worst case;
    on HL I trade online and the price will be better than LSE.
    on YouInvest I use Fill or Kill orders inside the LSE Bid Offer, which is a bit hit and miss.
Sign In or Register to comment.