We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

How do I Become a Freight Broker?

Nicole Madison
By
Updated May 17, 2024
Our promise to you
WiseGEEK is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGEEK, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Freight brokers work as sort of middlemen or liaisons, connecting people and companies with goods to ship with carriers willing to ship their freight. Freight brokers do not physically touch or take possession of the freight in any way. Instead, the extent of their involvement is matching shippers with freight carriers. The process involved with becoming a freight broker is pretty straightforward, but it can also be somewhat costly.

A person who wants to become a freight broker in the United States should go through the Federal Motor Carrier Safety Administration (FMCSA). The FMCSA is a division of the U.S. Department of Transportation and is the authority responsible for licensing freight brokers. To become a freight broker, a person has to obtain a Broker's Authority from the FMCSA for a fee of $300 US Dollars (USD). In addition to paying the fee, a person who wants to become a freight broker will have to fill out Form OP-1 in order to receive the Broker's Authority.

In order to become a freight broker, a person has to obtain a $10,000 USD surety bond or trust fund. These financial instruments are intended to guarantee that the broker will meet his obligations as they pertain to his business. In the event that he fails to do so, these instruments provide a way for those who've had business dealings with him to recoup any losses they may have suffered. Surety bonds and trusts can be obtained from banks and bonding companies. It is possible to have a company provide a bond for under $1000 USD, but this typically requires good credit.

Once a person has completed the first steps necessary to become a freight broker, he'll need to select a processing agent in the state in which he plans to operate his business. This agent is needed in case legal action arises. Form BOC-3 is required for choosing an agent, and the fee is $50 USD.

Some people take freight broker training courses to learn what it takes to become a freight broker and develop skills to use in operating their businesses. This is not a requirement, but it may help a person to get his business off the ground faster and avoid common mistakes. There are both training schools and courses from which to choose, but training doesn't have to be lengthy. There are even some manuals and books available that make learning at home relatively quick and easy.

Some people want to do the work of a freight broker without becoming licensed. They may become freight broker agents, working under the umbrella of a licensed freight broker. This generally requires little more than a computer, fax machine, and phone to get started. Typically, the freight broker will provide the agent with requirements for getting started as well as access to the freight broker's software system. However, the agent will have to share the profits from his efforts with the broker.

WiseGEEK is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Nicole Madison
By Nicole Madison
Nicole Madison's love for learning inspires her work as a WiseGEEK writer, where she focuses on topics like homeschooling, parenting, health, science, and business. Her passion for knowledge is evident in the well-researched and informative articles she authors. As a mother of four, Nicole balances work with quality family time activities such as reading, camping, and beach trips.

Discussion Comments

By anon144870 — On Jan 21, 2011

how do i can become a share broker? i want to know the process.

Nicole Madison

Nicole Madison

Nicole Madison's love for learning inspires her work as a WiseGEEK writer, where she focuses on topics like...
Read more
WiseGEEK, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGEEK, in your inbox

Our latest articles, guides, and more, delivered daily.