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Difficulty In Selling Brokered CDs?

Tuesday, August 27, 2013 - 5:12 AM
One reader emailed me about his experience in trying to sell Fidelity brokered CDs. Here’s an excerpt of his email:
I have brokered CDs with Fidelity.  I never had any luck in selling one if I wanted to cash it early, even when interest rates were in my favor.  I was told that the CDs I had were too small.

The reader said his CDs were in the range of $4,000 and $40,000.

I tried to get more details from a Fidelity CSR about selling small CDs, but he wasn’t able to provide any. The CSR just said that there may be times when you might not be able to sell a brokered CD on Fidelity’s secondary market.

For those who have sold brokered CDs at Fidelity or at other brokerages, did you have any problems? And what were the sizes of your CDs?
Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,634
1. Wednesday, August 28, 2013 - 7:10 PM
Not a direct answer to your question Ken, but today's Scott Burns column
contains some useful info on this topic (question 2, not question 1).

Note: he concludes by saying "Getting a reasonable price on broker-sold
CDs if you want to sell them before maturity date is a regular source of
complaint from readers."

Hope this is helpful for a few DA members.
cumuluscumulus359 posts since
Jan 16, 2010
Rep Points: 1,680
2. Thursday, August 29, 2013 - 3:25 PM
Ken, I don't buy brokered CD's precisely for this reason. I do buy corporate bonds but only issues that trade everyday. I have never seen a brokered CD trade more than a couple times a month. I would only buy a brokered CD if I was sure I would not mind holding the CD until maturity.
loulou552 posts since
Aug 3, 2010
Rep Points: 3,431