Services & Costs

Services and Costs

J W Korth/Shop4Bonds Services:
1. World's Leading Bond Inventory: With our Shop4Bonds^SM Alpha and Beta platforms, we show inter-dealer market offerings from over 400 dealers, banks, and institutions. The use of multiple platforms on one website shows our clients one of the largest bond inventories in the world available to retail.^*
2. Bond Values Research: We are continually searching the bond markets for values. During the course of trading we become aware of interesting situations. When we feel it is appropriate, we pass this valuable information on to you by special e-mails. Subscribe.
3. Responsive Online Execution: On both our Alpha and Beta systems we offer and encourage the use of the Electronic ordering feature. It saves you time because you can order bonds anytime and you don't have to wait for us to call you to tell you about your executions.
4. Free Test Drive: You can take a one time test ride of our system for 14 days by simply giving us your name and email address and agreeing to receive our Bond Values Research. (Free Test Drive)
5. Easy On-Line Account Opening: It takes just a few minutes to fill out an application. Click Here.
6. Depository Trust Company Delivery: Want to trade with us and consolidate your accounts elsewhere? We accept securities and deliver securities pursuant to your instructions via book entry DTC delivery. Delivery is free. Call or email us us to get a DTC Delivery Form.
7. Online Bond Account Statements and Account Viewing: Through our clearing partner RBC Correspondent Services, you will receive online statements and on-line viewing of your account. Sign up here.
8. Shop4Bonds Log Ons: There is a basic cost to providing you with Shop4Bonds system. Consequently, the System is set to automatically favor those customers who are actively trading securities through us. Therefore it is possible after a long period of no trade activity, you might receive a "Please call 1-800-454-1628 to have your log on reset".
J W Korth/Shop4Bonds Costs:
1. Electronic Transactions
  
  While we show thousands of offerings at inter-dealer prices to give you a great picture of what is available, we are not just an execution platform like other on-line dealers where you buy without assistance of professionals.
  1. Review of Orders: The bond market has many pitfalls especially in today’s environment. Because our customers are very important to us, we review every on-line order. For orders out of the ordinary, we review the security for ratings watches, price fairness, call prices and general business prospects and our representatives will discuss these matters with you before your purchase.
  2. We are monitoring new offers constantly and if a bond issue is available that will meet your requirements at a higher yield we will make every effort to tell you about it. Many of these may be on a net price because we have bought them for resale or are bidding for them in the market place as they become immediately available.
  3. Our fees are based on the time we spend to review your orders and find bonds that are suited to your needs and start at a minimum of $150.00 per transaction. We strictly adhere to FINRA guidelines in all our transactions.
2. Electronic Buy Transactions:
  1. For buy transactions of 20 bonds or more from the Shop4Bonds systems whether electronic or with telephonic assistance there are no stated execution fees. Rather there will a reduction in the yield offered by the dealer as follows:
    - Deduct 10 basis points (or 10/100ths of 1.0%) in yield for bonds longer than 8 years in maturity
    - Deduct 15 basis points (or 15/100ths of 1.0%) for bonds from 4 to 8 years in maturity
    - Deduct 20 basis points (or 20/100ths of 1.0%) in yield for bonds shorter than four years
    Example: Suppose a bond on our Shop4Bonds System is offered at 6.35%. If it is longer than 8 years, you receive a yield of 6.25%. If it is between 4 and 8 years, you receive a 6.20%. If it is shorter than 4 years and you receive a 6.15% yield to maturity.
  2. Bonds offered with a yield to maturity of higher than 8.0% will receive the basis point pricing based on an 8.0% yield to maturity.
  3. There is a 10 bond minimum and a minimum flat fee of 1.0% of Principal Amount for fewer than 20 bonds. For all orders the minimum fee is $150.
  4. Convertible bonds, commodity based issues, derivative bonds, distressed bonds, and other out-of-the-ordinary securities will have special pricing.
3. Electronic Sell Transactions there is a basic fee of $7.50 per $1,000 bond. This fee may be discounted for larger orders and special handling charges may be applied. For all orders there is a minimum fee of $150.
4. For special offerings and Buys or Sells handled through one our of our Investment Specialists bonds will be offered at a net price with a customary mark-up.
5. For bonds we own prior to sale to you, we may have a profit or loss based on market conditions.
6. Other Situations. Most people are familiar with transactions in the bond market as either buying or selling a security. While these encompass most transactions, from time to time other transactions occur which require investors to make an informed decision. An example are tender offers where either the issuer or some other party offers to purchase your bonds against some set of particular terms, conditions and time frame. A tender offer often requires a continuous, time consuming daily interaction among the bondholder, his broker, the tender offer advisor and the tender agent. Tender offer terms often are changed on a daily and even an hourly basis. Consequently these offers require extra effort by us to be sure that timely information is delivered to you and may require our analyzing particulars and giving advice as to help you make an informed decision. There are also other situations which may require similar attention on our part. For these types of transactions, we charge a fee of $7.50 per bond or a minimum of $150.00 upon completion of the transaction.
7. There are other incidental institutional costs common throughout the securities industry. At Shop4Bonds, we have found ways to help our customers manage these costs to a minimum level:
  - Automated Customer Account Transfers (ACATs): When you ship your securities to another firm, it require people's time to review and execute the transaction. Consequently there is a charge of $35.00 per outgoing ACAT transfer. Incoming ACATs are free.
  - Late Payment: When for any reason your payment does not arrive by Settlement Date, we still must pay for your securities that day. Consequently, until we receive the funds from you we incur borrowing costs. We pass these costs on to you. Using our automated check payment function is the easiest way to avoid these costs.
  - Account Maintenance Fee: This $35 fee only applies to an account that has been open at least 12 months prior to November 1; and has had fewer than two trades in the 12 months prior to December 1, or has less than $10,000 in cash and/or money market funds (can be
    combined), or less than $10,000 in a networked mutual fund. RBC Dain retirement plan accounts, Investment Access accounts, fee-based accounts, and margin accounts with a margin loan balance are not subject to the IAF.
  - Miscellaneous Fees: Please click here to see a complete list of miscellaneous fees charged.
8. Changes: J W Korth/Shop4Bonds reserves the right to make changes to the pricing of its services at any time without prior notice to customers. Customers will be notified of trade pricing at the time they place their trade.

The information presented on our website regarding bond offerings is gathered from dealers throughout the United States and in some instances may be from other parts of the world. While very comprehensive, it should not be expected that we are showing all the offerings of any security. Also some of the offerings may be our own or from our customers.