T-bills at TreasuryDirect vs a brokerage
- TreasuryDirect hold45 daysbefore transfer or sale
- TreasuryDirect feesNonefor purchases and holding
- Competitive bidsBrokersonly; TreasuryDirect takes non-competitive bids
Treasury bills can be held at TreasuryDirect or through a bank, broker or dealer.
This page covers the brokerage route and the differences side by side: the secondary market, exiting before maturity, holding periods and fees, from TreasuryDirect, FINRA and SIPC pages.
For the TreasuryDirect steps, see the T-bill at TreasuryDirect guide.
Official rules checked Oct 24, 2026. Treasury data retrieved Oct 24, 2026.
Side by side
| TreasuryDirect | Bank, broker or dealer | |
|---|---|---|
| How bids are placed | Non-competitive only (TreasuryDirect) | Non-competitive or competitive, not both in one auction (TreasuryDirect) |
| Already-issued bills (secondary market) | Not available inside TreasuryDirect | Traded through the firm at market prices (FS Pub. 009) |
| Exiting before maturity | Transfer to a bank, broker or dealer first, then the sale happens there (TreasuryDirect) | The firm handles the sale at the market price (TreasuryDirect) |
| Holding period | 45 days after issue before transfer or sale; a 4-week bill cannot be transferred (TreasuryDirect; 31 CFR 363) | No TreasuryDirect hold; firm rules apply |
| Fees | No fees for purchases, reinvestments or most transactions (TreasuryDirect) | Set by each firm: a commission, or a markup or markdown in the price (FINRA) |
| Cash management bills | Not offered in TreasuryDirect (FS Pub. 009) | Available through a bank, broker or dealer |
| Minimum | $100, in $100 increments; up to $10 million non-competitive per auction (TreasuryDirect) | $100 at auction; firm minimums may apply |
| If the firm fails | Held in an account at the U.S. Treasury (TreasuryDirect) | SIPC coverage up to $500,000, incl. $250,000 cash; not market losses (SIPC) |
Rules as published by TreasuryDirect, FINRA and SIPC, checked Oct 24, 2026. Brokerage fee schedules vary by firm and are not listed here.
The brokerage route, step by step
- Open or choose a brokerage account. A bank, broker or dealer holds Treasury securities in the commercial book-entry system, outside TreasuryDirect.
- Check the auction calendar. Find the bill term and auction date on the Treasury auction calendar; bids are placed before the auction closes.
- Choose a bid type. Through a bank, broker or dealer, a non-competitive bid accepts the auction rate; a competitive bid names a rate and may be filled in part or not at all. Not both in the same auction.
- Or trade on the secondary market. Bills already issued can trade through the firm at prevailing market prices instead of at auction.
- Read the trade confirmation. FINRA notes a firm acting as agent discloses its commission; acting as principal, the price can include a markup or markdown.
- At maturity or earlier. The bill pays face value at maturity. Before maturity, the firm can arrange a sale at the market price, which can be above or below the price paid.
Exiting before maturity
TreasuryDirect states that a Treasury marketable security can be held to maturity or sold before it matures, and that the sale has to go through a bank, broker or dealer (TreasuryDirect). A bill in TreasuryDirect is first moved out with an external transfer (FS Form 5511), in $100 increments, after the 45-day hold (TreasuryDirect user guide). A sale before maturity is at the market price that day, which can be above or below the original price.
Fees, as the official sources state them
TreasuryDirect: "no fees are charged for purchases, reinvestments, or most other transactions" (TreasuryDirect). Brokerage: FINRA explains that a firm acting as agent must disclose any commission on the confirmation, and a firm acting as principal may include a markup or markdown in the price (FINRA). This page does not list or compare individual firms.
Not confirmed
Brokerage minimums, fee schedules and settlement timing differ by firm and are not published by an official source, so none are stated here.
Related: T-bill at TreasuryDirect, step by step · this week's Treasury auctions · Treasury yield curve explained · T-bill vs CD after tax · T-bill calculator.
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Frequently asked questions
Can a T-bill held in TreasuryDirect be sold before maturity?
Not inside TreasuryDirect. TreasuryDirect says the bill must first be transferred to a bank, broker or dealer, which can then arrange the sale. New purchases must be held 45 days before transfer, so a 4-week bill bought there cannot be transferred or sold.
Does TreasuryDirect charge fees?
TreasuryDirect states that no fees are charged for purchases, reinvestments or most other transactions, and that there are no fees for holding or transferring Treasury marketable securities.
What does a brokerage charge on a T-bill?
It depends on the firm. FINRA explains that a firm acting as agent discloses a commission, and a firm acting as principal may include a markup or markdown in the price. Fee schedules are set by each firm.
Can competitive bids be placed in TreasuryDirect?
No. TreasuryDirect accepts non-competitive bids only. Competitive bids go through a bank, broker or dealer.
Are T-bills at a brokerage covered by SIPC?
SIPC lists Treasury securities among the securities it protects when a SIPC-member brokerage firm fails, up to $500,000 including a $250,000 limit for cash. SIPC does not cover losses from market value changes.