Buying and selling XTBs is simple
Step 1: Select which XTB you wish to purchase
- Use the Available XTB interactive table
Tip: The Cash Flow Tool will be helpful in deciding whether the XTB meets your Cash Flow needs
Step 2: Read the relevant Product Disclosure Statement (PDS) for the XTBs you have selected.
Step 3: Contact your stockbroker or financial adviser, or visit your online broker and transact in exactly the same way you do with shares.
With XTBs there’s no minimum investment amount and no additional account paperwork required.
If you do not have a stockbroker, or online broker, please visit the ASX website for a list of brokers.
Things to consider when deciding which XTBs to buy:
- What is your view on interest rates?
- Are you looking for a Fixed or Floating Rate Bond?
- How long do you wish to invest for?
- What is the maturity date of the XTB?
- Remember, you can sell on market at any time during the life of the XTB.
- What is your view on the creditworthiness of the bond issuer?
- Will they pay coupons and repay the principal?
- What is the yield you are looking for?
- Is the average yield of the XTBs you’re looking at better than the rate you’d get from a Term Deposit?
For investors wishing to buy XTBs in larger volumes, please contact our Authorised Participants and Market Makers for more information.
Call us on 1800 995 993 for their contact details.
What costs are involved in buying XTBs?
When buying shares, ETFs or XTBs on ASX, you will buy through a broker, online broker or financial adviser or platform. Generally, they will charge a brokerage fee, which will vary with each broker or adviser. This can range from 0.10% to 1%, depending on the size of the transaction. You should speak to your broker or adviser to confirm the brokerage rate.
How is liquidity provided on ASX?
Like ETFs, XTBs have a Market Maker that will provide liquidity – buys and sells, on ASX.
Liquidity may also be provided by:
- Investors buying and selling XTBs between each other on ASX, in the same way as shares;
- Authorised Participants may create and redeem units on a daily basis, to provide additional liquidity where market demand has increased.
Which brokers provide information about XTBs?
Full Service Brokers
To obtain a referral of a broker who may provide you with advice on XTBs, please contact us on 1800 995 993.
This list is not exhaustive, please contact your broker for more information.
Want to know more?
Watch this video interview with CEO Richard Murphy and Financial Observer journalist Elizabeth Somerville.