Qualifications for Fixed Income Trading

Fixed income trading is the purchase and sale of bonds. To be able to trade fixed income securities for someone else's account, you must have certain qualifications and, in particular, a securities license.

Sponsorship

• Sponsorship is defined as being employed by a qualified institution that's licensed as a broker-dealer. Broker-dealers are institutions that effect securities transactions for clients. For example, you may be employed by the financial services division at a bank. The bank acts as a broker-dealer to facilitate transactions for their customers' accounts.

Licensing

• At a minimum, you must be in possession of a Series 7 license and securities registration with the Financial Industry Regulatory Authority (FINRA). The Series 7 license allows you to become a broker and effect various securities transactions, including the purchase and sale of bonds. It's also helpful but not necessary to have a Series 66 license, which allows you to give advice regarding securities.

Continuing Education

• Once you're licensed, you must remain current on continuing education credits. Continuing education is comprised of two elements: firm element and regulatory element. Your compliance supervisor stipulates the courses you are required to take.