What is the actual difference between buying a bond on BondScanner vs buying the same bond on Zerodha? Am I paying more on one platform?

QnA Discussions
1

Spent some time comparing a specific bond ISIN across BondScanner and Zerodha. The yield shown was slightly different. Same bond, same maturity, different displayed yields. Trying to understand what accounts for the difference and whether one route is definitively cheaper. Disc: this is a genuine due diligence question before I commit a large amount.

2

The difference comes from two sources. First, the price at which each platform sources the bond from the market. Platforms that have strong institutional distribution relationships can sometimes source bonds at tighter spreads. Second, the spread each platform builds into the price. OBPs like BondScanner are regulated by SEBI as Online Bond Platform Providers and must charge only what is disclosed. Brokers have their own brokerage structures. Neither route has a universally lower cost but they differ bond by bond.

3

so the same bond genuinely costs different amounts on different platforms. not just display differences

4

Yes. The yield difference you see is a real price difference. A bond yielding 8.52% on one platform and 8.48% on another means the bond is actually priced differently. The 4bps difference over a 3-year tenure on Rs 5 lakh is roughly Rs 600. Not life-changing but not nothing. For large investments it is worth checking the same ISIN on two or three platforms before transacting.

5

which is actually cheaper then. OBP or broker

6

No consistent answer across all bonds. For G-Secs, RBI Retail Direct has zero charges and is the cheapest route. For corporate bonds, OBPs with primary distribution relationships sometimes offer better yields on new issues than secondary market purchases through brokers. For secondary market bonds it varies by bond and by day. The only way to know is to check.

7

practical approach: for G-Secs use RBI Retail Direct, zero cost. for corporate bonds check BondScanner and one other platform for the specific ISIN before buying. five minutes of work. the yield you lock in is fixed for the entire tenure so even 10bps difference matters at scale. never assume one platform is always cheaper.