TSC's Guide to Bonds Online: How the Biggest Online Brokers Stack Up

The biggest online brokers offer plenty in the way of bond trading, but except for E*Trade (EGRP Quote) and Morgan Stanley Dean Witter's (MWD Quote) Discover Brokerage Direct, they're offering very little of it online.

Of the nine biggest online brokers by market share, according to Credit Suisse First Boston's latest accounting -- Charles Schwab (SCH Quote), Toronto Dominion's (TD Quote) Waterhouse Securities, E*Trade, Datek Online, Fidelity Investments, Ameritrade (AMTD Quote), Donaldson Lufkin & Jenrette's (DLJ Quote) DLJdirect, Fleet Financial's (FLT Quote) Quick & Reilly and Discover -- only Datek doesn't offer any bond services at all. But in most cases, the amount of bond business that can be transacted online (as opposed to on the phone with a broker) is extremely limited.

Waterhouse, Ameritrade and Quick & Reilly, for example, offer only the ability to place orders for Treasury auctions online (for a fee, which, as we've discussed, you don't need to pay if you place your order through Treasury Direct). All other bond transactions require broker assistance. ...