Fixed Income Brokers and Dealers

Invest in fixed income securities with fixed income dealers
By Felicia R. Blue Many elect to do business with fixed income brokers and dealers. Fixed income is considered safe because it is backed by either the U.S., state or city government. However, you also can invest in corporate bonds.
 

Fixed income securities, such as municipal and treasury bonds, play important roles in both domestic and foreign economies. If you invest in the right securities, you can rely on consistent income. Consider the following income securities you can invest in with fixed income brokers and dealers:

1. Register with a fixed income brokerage firm that specializes in treasury securities.

2. Use municipal bond dealers that focus on municipal bonds.

3. Employ fixed income brokers and dealers to invest in corporate bonds.

Sign up with a fixed income brokerage firm that focuses on treasury securities

Are you interested in fixed income, but want to help your federal government pay off its debt? Consider investing in treasury securities. These securities include U.S. savings bonds and notes. You can count on receiving interest and principal payments on time. You can buy and trade these securities through fixed income brokers and dealers.
Try: T. Rowe Price is known not only for selling mutual funds, but also as a fixed income dealer. This broker for fixed income has many bond funds that invest in treasury securities. OptionsXpress is also a fixed income broker. Though it’s an online fixed income brokerage firm, you can obtain help from its support staff if you need assistance.

Employ municipal bond dealers that specialize in municipal bonds

Municipal bonds are essential for financing local governments' projects. You'll be buying municipal bonds so that your local governments can fund projects, including school construction, bridges, hospitals and roads. One of the reasons why municipal bonds dealers are successful in buying and selling bonds is that these securities tend to be tax-free. However, you'll want to ask your municipal bond dealer about the tax risks involving these bonds.
Try: Go to FMS Bonds’ website to see all of the municipal bonds this fixed income broker offers. If you’re new to municipal bonds, this fixed income brokerage company has a very good educational section. Also check out BuySellBonds.com. This is one of the popular municipal bond dealers for buying and selling municipal bonds.

Invest in corporate bonds with fixed income brokers and dealers

Like governments, corporations sell bonds to finance their operations. Unlike government bonds, corporate bonds can be risky. These bonds are graded, based on how financially strong the company is. Therefore, you'll definitely want to seek advice from your fixed income dealer.
Try: Fidelity is one of the top fixed income broker firms. You’ll have to be an account holder with the firm in order to purchase corporate bonds. You’ll also want to check out Zions Direct. You can access its database, which contains over 25,000 bonds, including corporate bonds.

• Make sure your fixed income broker diversifies your portfolio. In other words, have a balance of treasury notes, CDs (certificate of deposits) and bonds.