WHAT YOU NEED TO KNOW ABOUT CD CERTIFICATES OF DEPOSIT
Purchasing a CD is as easy as going to a local bank, but brokerage firms also sell CDs. These brokered CDs are actually pieces of larger CDs. The broker simply compiles the deposits of several investors and buys one, large CD with the money. One advantage of doing this is that investors might be able to benefit from the broker's access to information from institutions across the country and its ability to negotiate special higher interest rates. Many brokers do not charge investors a fee to invest in these brokered CDs. Instead, they usually receive a commission from the issuer.