Primary Dealer

In investment, the term primary dealer refers to a broker or other service provider which acts as a transfer agent for government bonds.

A primary dealer purchases government bonds directly from government agencies (a government treasury or a central bank, for example), and then resells those bonds to investors.

A government agency or central bank may have just one primary dealer which holds a monopoly on the retailing of government bonds, or it may have multiple primary dealers.

Some government agencies hold auctions in which several primary dealers can bid on government securities. The primary dealers then sell the purchased securities to investors at a profit.

More on this topic:
Online trading comparison

About is Switzerland’s independent online comparison service covering banking, insurance and telecom. More than 100 unbiased comparison tools and calculators are available on, along with useful financial guides and timely news. The comprehensive comparison tools help you to find the right insurance policies, bank accounts, credit and prepaid cards, loans, mortgages, trading accounts and telecom products for your needs.