Freight Broker FAQs

Our freight broker training is self-paced, allowing you to complete it in a timeframe that suits your schedule, as the access never expires, and there are no required study hours or fixed course requirements. Most students typically finish the core training modules in 2 to 3 weeks. We do offer Quizzes and a Certification upon completion, but these are optional and not mandated by the FMCSA.

No, this training itself does not grant a license; official Freight Broker Authority (often referred to as a license) is issued by the Federal Motor Carrier Safety Administration (FMCSA). However, our course thoroughly prepares you for the industry. We have partners that can help you get your Freight Broker Authority, and we also provide a guide to help you do it yourself.

A freight broker is the owner of their company and assumes full legal and financial responsibility for cargo movement, having met all legal requirements (e.g., Authority, Bond, BOC-3) to operate. A freight agent works under the authority of a licensed broker, typically as an independent contractor, and usually receives a percentage of the brokerage fee.
Key distinctions:
Responsibility & Requirements: Brokers meet all legal FMCSA requirements and bear legal/financial responsibility. Agents work under a broker’s authority and do not assume direct responsibility for insurance, authority, claims, or collections of freight bills.
Compensation: Agents typically earn a commission. For instance, agents starting out might receive 50% of the gross profit from every load, while established agents with a book of business can command as high as 75%.

Yes, there is a very large and growing market for freight brokers and agents. U.S. Bureau of the Census County Business Patterns indicate that agricultural and manufacturing businesses are growing exponentially every year, with current estimates of close to a million shippers. Freight transportation costs in the US are well over the multi-billion dollar range annually and rising. The amount of freight being moved by third parties, such as freight brokers, is currently estimated in the 20-30% range and growing. More shippers are using brokers and forwarders each year because it is usually much less expensive for them to outsource than to fund and maintain an in-house transportation department, as employee-related costs are typically a business’s most expensive operation. Paying a broker on a performance-only basis is the trend of the future for many shippers.

You can find shippers and carriers through several different methods.
To find shippers:
• A number of freight brokers purchase industry databases and member information from different industry organizations.
• You can enter into Co-Broker agreements with other freight brokerages.
• The primary job function you will perform is to contact companies who ship products and establish new accounts to use your services.

To find carriers:
• You will contact carriers to move your freight using internet load boards.
• Access carrier databases.
• Utilize industry associations you have acquired through networking.

Your earnings as a freight broker are determined by your motivation to succeed and how you adapt to the industry; a full-time freight broker can easily make from $50,000 to well over six figures annually. This is a recession-proof business that provides unlimited income potential and a long-range customer base for the right person. However, this business is based on contacts and relationships, so it takes time to build these and turn them into paying customers. Sometimes it can take six months or longer to establish a solid customer base for a profitable income, but it can be done in less time. Overall time lengths vary primarily on the individual’s determination and desire to succeed.

A BOC-3 designates a processing agent. This is a representative upon whom court papers may be served in any legal proceeding brought against a motor carrier, broker, or freight forwarder. Filing a BOC-3 is a requirement for obtaining freight broker authority.

Freight brokers are required to post a surety bond of at least $75,000. The amount you actually pay for your bond (the premium) depends on a number of factors, including your creditworthiness, the type of bond you choose, and the programs provided by the financial institution you choose to use.

The Federal Motor Carrier Safety Administration (FMCSA) charges a $300.00 fee to apply for operating authority (covering motor property carrier, motor passenger carrier, freight forwarder, or broker). This application requires you to fill out a 4-page form and can be completed online or by mail. We can also file for your operating authority with the FMCSA for a service fee of $349.00.

To legally operate as a freight broker in the United States, you must fulfill several key requirements:
• Apply for your authority from the Federal Motor Carrier Safety Administration (FMCSA), allowing you to act as a freight broker.
• Post a surety bond or trust fund of at least $75,000.
• File your BOC-3 (Designation of Process Agent).
• Complete a yearly Unified Carrier Registration (UCR).

‘Property Broker’ is the correct terminology for the many names used in the business to identify what we do; terms like ‘Truck Broker,’ ‘Freight Broker,’ and ‘Transportation Broker or Agent’ are often used interchangeably and are synonymous with ‘Property Broker.’ Property Broker Authority allows a third-party to arrange the pick-up and delivery of a Shipper’s product by a Carrier without ever having physical control of the shipment.

Yes, Canadian residents who wish to broker freight within the United States must also apply for their broker authority with the FMCSA. For more information on Canada Freight Broker License Requirements, visit our Canada Licensing page here.

The following are the basic office tools required for starting a freight brokerage:
• Set Up Basic Office Equipment and Communication Tools: Acquire a computer, phone, and reliable internet access.
• Subscribe to Load Boards: Access online platforms to connect with shippers and carriers.
• Maintain Record-Keeping Systems: Implement a system to keep records of transactions and communications as required by law.

Yes, having a felony does not mean you can’t apply for or be granted a freight broker’s license from the FMCSA. You need ONLY to be a VALID U.S. Resident.

No, Freight Broker Training School is not required to receive your property broker authority. However, the failure rate for those who attempt this business without freight broker training is high. In order for a broker to be successful in any industry (stock broker, real estate broker, etc.), formal training is a must. We will prepare you to perform broker duties in a profitable, ethical manner, giving you the tools needed to be successful in the field.

No, while a background in transportation or logistics can be helpful, it’s not a prerequisite for success as a Freight Broker. Many successful brokers come from diverse professional backgrounds and learn the industry through training and experience.

No, freight brokering is not a get-rich-quick scheme. Like any business, it requires hard work, dedication, and time to build a profitable clientele. It’s not a guaranteed way to get rich quickly, but it offers the potential for a lucrative income over time.

Technology plays a significant role in modern freight brokering. Brokers use transportation management software (TMS), load boards, and other digital tools to efficiently connect with carriers and shippers, track shipments, and manage logistics. These tools help streamline business processes.

Yes, there is a demand for specialized brokers who focus on specific niches such as temperature-sensitive goods (reefer freight), oversized cargo, or hazardous materials. Specialization can lead to higher earning potential due to the specialized knowledge and network required.

Effective communication and negotiation skills are essential, as disputes and issues can arise in the freight brokerage business. Brokers often have established protocols and contacts to help resolve problems. Key strategies include maintaining clear contracts, proactive communication, and having procedures for common issues. Building strong relationships also helps.

Yes, like any business, there are risks in freight brokering, such as financial risks (e.g., non-payment, cash flow) and the potential for legal disputes. However, with proper training, diligent business practices, robust contracts, and effective risk management (e.g., credit checks, carrier vetting), these risks can be minimized.

Freight Brokers are not typically responsible for cargo claims or primary cargo insurance. It’s generally the responsibility of the motor carrier to insure the cargo, and shippers usually handle their own insurance matters. While brokers facilitate, the carrier’s insurance is primary. Brokers should verify carrier coverage.

Building a network of reliable carriers is crucial. Brokers often rely on load boards, referrals, industry events, and online communities to connect with reputable carriers. Effective strategies also include direct outreach and vetting carriers for safety, insurance, and authority. Treat carriers as valued partners with clear communication and fair terms.

Yes, you can start a freight brokerage business part-time and transition to full-time as your business grows. This approach allows you to test the waters and minimize financial risks while learning the industry and building your initial client/carrier base.

No, you generally do not need to hire expert representation like a DOT practitioner, lawyer, or accountant to file for your motor carrier and/or property broker authority. The necessary documents and detailed instructions for completing them are readily available on the Federal Motor Carrier Safety Administration’s (FMCSA) website. The FMCSA can also be contacted directly for assistance if you have questions during the application process.

No, hiring an expert to file for your authority will not make the FMCSA processing times faster. Regardless of who files the application, you will typically receive a temporary MC number instantly. This MC number becomes permanent and active only after a mandatory 10-day protest period and after you have successfully met the bond (or trust fund) and BOC-3 filing requirements. There is no special filing method that can expedite this sequence of events.

Yes, instructors not actively brokering can still provide practical and up-to-date industry knowledge. Reputable freight broker schools often dedicate significant time to researching and compiling comprehensive information, including current industry standards and best practices. This structured approach can allow for a more thorough presentation of information than an active broker, focused on daily operations, might consistently offer in a course setting.

While not always mandatory, effective teaching is a skill that often benefits significantly from formal training, even in specialized fields like freight brokering. Quality instruction typically involves well-developed skills in curriculum design, preparing engaging lessons, effective delivery methods, and appropriate student evaluation techniques to ensure learning objectives are met.

No, the Federal Motor Carrier Safety Administration (FMCSA) recognizes only one official level or type of authority for freight brokering, which is termed ‘Property Broker.’ While terms like ‘Freight Broker,’ ‘Truck Broker,’ or ‘Transportation Broker’ are commonly used in the industry, and various training programs may offer their own certificates of completion, the FMCSA does not issue different tiers or levels of certification for Property Brokers. Regardless of experience or training courses taken, the official designation remains ‘Property Broker.’ You can contact the FMCSA at 1-800-832-5660 for verification.