Gilts, or gilt edged UK government bonds can be bought from high street banks, from an independent stock broker, via electronic trading platforms or purchased directly from the government's Debt Management Office gilt auctions.
Private investors may prefer to buy their gilts through what is referred to as the secondary market, stock brokers and banks although gilts can be bought and sold through a variety of channels, including:
Directly from the UK government: You can purchase gilts directly from the UK government's Debt Management Office (DMO) through their online portal, "Gilt-edged Market Maker" (GEMM). However, this is typically only an option for institutional investors and not individual investors.
Through a broker or financial institution: Most individual investors purchase gilts through a broker or financial institution, such as a bank or investment firm. You can open a brokerage account with a financial institution, fund it with cash, and then use the brokerage platform to buy and sell gilts.
Via electronic trading platforms: Some online trading platforms, such as Bloomberg and Tradeweb, allow investors to buy and sell gilts directly.
The Purchase and Sales Service (PSS) is a service provided by the UK Debt Management Office (DMO) that enables individual investors to buy and sell gilts directly with the DMO. This service is primarily designed for retail investors who wish to invest in gilts in small amounts.
To use the PSS, you need to open an account with the DMO and complete a registration process. Once you have an account, you can place orders to buy or sell gilts online, by post, or by telephone. The DMO will provide you with a quote for the gilt you wish to purchase or sell, and you will have a limited amount of time to accept or decline the quote.
The PSS is a useful option for retail investors who want to invest directly in gilts, but it's worth noting that the service is subject to capacity limits and may not always be available. Additionally, the PSS is typically used for smaller transactions, so if you are looking to trade larger amounts of gilts, you may need to use a broker or financial institution.
Learn about the benefits, risks, and latest trends in investing in Gilts and Government Bonds