Bonds trade on a 'principal' basis.
The dealer must maintain competitive pricing since the dealer is selling the same line of goods as his or her principal competitors. Ask for details about a financial advisor's book, such as how many clients there are, the size of assets, and the number of sales assistants. Therefore there are two factors at work here. The transfer price will vary from one investment dealer to another and is a function of the philosophy and structure of that organization. This is why it is important to ask about a firm's philosophy as to whether or not the retail desk is master of its own destiny or has to pay the wholesale desk something.