How To Buy Municipal Bonds Directly May 2026

: Brokers typically charge a markup (a hidden fee added to the purchase price) or a commission to execute these trades.

: There are generally no markups or transaction fees when buying in the primary market. However, minimum investments are often higher—typically starting at $5,000 per bond. 3. Secondary Market: Existing Bonds how to buy municipal bonds directly

This involves buying bonds during their initial sale period, often called a . : Brokers typically charge a markup (a hidden

Buying municipal bonds ("munis") directly generally means purchasing individual bonds rather than investing through a mutual fund or ETF. There are two primary ways to do this: the (newly issued bonds) and the secondary market (previously issued bonds). 1. Purchase Channels There are two primary ways to do this:

: Prices fluctuate based on current interest rates, credit ratings, and market demand.

: The retail order period usually lasts a few days, giving individual investors a chance to buy at the same price as large institutions before the bonds are available to the general public.

Individual investors typically cannot buy municipal bonds directly from the issuing local government; instead, they must use an intermediary.