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 of 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 Discount Futures Broker?

Helen Akers
By
Updated Feb 19, 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.

In order to become a discount futures broker, an individual needs to pass the Series 3 exam, register with the National Futures Association (NFA), and secure a position with a futures brokerage agency. An alternative to obtaining a position with an agency is to establish your own brokerage business. A few brokerage agencies solicit candidates for sponsorship. The sponsored candidate will temporarily secure a position with the agency, but is required to pass all testing and licensing requirements.

The first thing you need to do to become a discount futures broker is to decide if you want to obtain Series 3 sponsorship from an agency. Internet job board sites as well as local newspapers and trade magazines may feature advertisements for brokerage positions. In the job advertisement, it may state that the agency is willing to train and hire candidates who successfully complete the Series 3 exam requirement within a specified period of time.

Passing the National Commodities Futures Exam or Series 3 exam is a requirement to become a discount futures broker. The exam covers the market rules and regulations involved in trading commodities and futures. Adequate preparation for the exam is strongly recommended. Exam preparation materials are available through a variety of vendors if you choose to obtain your exam certification without sponsorship.

To register for the Series 3 exam, contact the Financial Industry Regulatory Authority (FINRA). They administer the exam from multiple locations on most weekdays. The test consists of 120 multiple choice questions and takes approximately two and a half hours to complete. A score of at least 70 percent needs to be obtained in order to pass.

Once you have passed the Series 3 exam, the next step to become a discount futures broker is to register with the NFA. This registration should be completed as an "Associated Person." You will need to submit an online registration form, fingerprint cards, proof of your Series 3 exam results, and a non-refundable fee. A verification of the registration form will also need to be conducted.

After you are registered with the NFA, you have the choice of starting your own firm or obtaining a position with an established agency. If you obtained sponsorship from an agency prior to completing your exam and registration, you have completed all the necessary steps. The company who sponsored you may have additional requirements and training that you will need to complete.

If you did not obtain sponsorship prior to taking the exam, you will need to conduct a job search to become a discount futures broker. Professional organizations, career services, employment placement agencies, newspaper and online classifieds are a good place to start. As a candidate who has already secured Series 3 licensing and registration, you may have an advantage over other applicants who have not.

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.
Link to Sources
Helen Akers
By Helen Akers
Helen Akers, a talented writer with a passion for making a difference, brings a unique perspective to her work. With a background in creative writing, she crafts compelling stories and content to inspire and challenge readers, showcasing her commitment to qualitative impact and service to others.
Discussion Comments
Helen Akers
Helen Akers
Helen Akers, a talented writer with a passion for making a difference, brings a unique perspective to her work. With a...
Learn 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.