How to Become a Freight Broker With No Experience

Q: What are the legal requirements to operate as a Freight Broker?

You must submit your Freight Broker Registration application to the Federal Motor Carrier Safety Administration (FMCSA) through their Unified Registration System. Upon receiving your pending US DOT number you’ll also need to meet the additional requirements of proof of financial responsibility by posting a $75,000 Surety Bond or $75,000 trust fund, filing your BOC-3, and filing a yearly Unified Carrier Registration.

Q: What's the difference in being a Freight Broker and Freight Broker Agent?

The first one works on his own, runs his company. The second one is an employee of a brokerage company and gets a commission percentage of the brokerage fee.

Q: Can I work at home?

You not just 'can' but you 'must' work at home at the beginning in order to save money, keep your expenses low while you grow and develop your business.

Q: What is a Freight Broker (Property Broker)?

Property Broker is the correct terminology for many names used in the business to identify what we do. Truck Broker, Freight Broker, Load Broker, Freight Agent, Transportation Broker or simply Broker or Agent are all interchangeable terms synonymous with ‘Property Broker’. An active FMCSA registration to operate as a Property Broker allows a third-party to arrange pick-up and delivery of a Shipper's product by a Carrier without ever having physical control of the shipment.

Q: Does a Freight Broker need a broker’s license specific to their state or in each state?

Freight Brokers are regulated by the Federal Motor Carrier Safety Administration (FMCSA). The Freight Broker registration with the FMCSA allows us to make arrangement for the transportation of freight anywhere within the United States. So, no, you will not need a separate freight broker’s license for each state.

Q: How much does it cost to apply for your Freight Broker Registration / US DOT # with the FMCSA?

The FMCSA charges $300.00 to apply for a registration with an operating status of a motor property carrier, motor passenger carrier, freight forwarder or freight broker. The FMCSA does require all new applicants to complete their registration application online through their Unified Registration system. No new applications by mail. If you’d like, a Freight Broker Training filing specialists will file for your Freight Broker Registration on your behalf with the FMCSA for $450.00 (includes the $300.00 fee charged by the FMCSA). Plus, our course graduates are eligible for one Freight Broker Registration filing service included in their course cost ($150 value, filing service does not include the $300.00 fee charged by the FMCSA).

Q: What is a BOC-3 and how much does one cost?

A BOC-3 form is provided by a process agent. It’s a blanket form of coverage that designates a representative in each individual state upon whom court papers may be served in any proceeding brought against a motor carrier, broker or freight forwarder. A BOC-3 form and filing is usually priced between $25 to $150, depending on the process agent providing the form.

Q: What is the difference in being a Freight Broker or a Freight Broker Agent?

A broker is the owner of his or her own company. They are required to meet all legal requirements (FMCSA Registration, Bond/Trust Fund, BOC-3) to operate as a broker. An agent works under the umbrella of the registered broker and typically receives a commission percentage of the brokerage fee.

Q: Is Freight Broker training school required?

Currently the answer is “Not yet”. Soon, the FMCSA will be establishing new rules requiring brokers to show proof of knowledge or have relevant experience. However, whether training is required by law or not, the reality is that 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. Freight Mover School will prepare you to perform broker duties in a profitable, ethical manner, giving you the tools needed to be successful in the field.

Q: Should a Freight Broker school be affiliated with a freight brokerage?

Yes! And the instructors should be actively engaged in brokering freight. How can an instructor teach something they don’t do themselves? When a school tells you they are affiliated with a brokerage ask for the brokerage name and US DOT # or MC # so you can check their FMCSA registration or authority and make sure it is current.

Freight brokers are kind of middlemen between the shippers and the carriers. They help companies to transport their freight to the destination. If you want to become one of them but you do not have any experience, you can use freight broker training or follow steps that will help you to get started your freight broker career and build your own business without specials knowledge.

What is a freight broker

A freight broker facilitates communication between shippers and carriers, the broker is like an intermediary. They make sure that the transfer of the freight between companies goes smoothly and without any problems. Freight brokers never take the freight on themselves, instead, they usually look for a company with transportation services that can pick up and deliver the cargo to the final destination.

Skills for freight broker

It is easier to become a freight broker today than ever before, because of modern technologies. But not only technologies will make your way to becoming a freight broker successfully. You also should have some skills and habits.
Here are some skills that help to maximize success:

management skills;
excellent communication;
strategy skills;
ability to planning;
organization skills;
analytical skills;
ability to multitask;
negotiation skills;
ability to network;
time management.

How does freight brokers earn money

The freight broker receives from 10% to 35% of the amount of the shipment they handled. And people with no experience can earn between $100 and $500 for every shipment. But professional or just having some experience freight brokers can get more than $5000 for just only deal, and number of such a deals per day can be 5 and more. An average freight agent salary of $59,000 per year.

How to become a freight broker with no experience

It is easier to become a freight broker with experience, of course, but if you do not have the one, here are steps for you to begin:

Study

The most important thing in becoming a freight broker is knowledge. You need to know the industry and how it works. For this step, you can use online courses, books, or the internet. Meet new people in this sphere and learn from them. The knowledge you should get at least: what is the industry and how it works, how to get clients and work with them, how to manage your business, and all other useful information from all possible sources.
Make a business plan. Do some market research. Use all information you found and your knowledge. Choose your market niche and try your business plan on it. If you think your plan idea is perfect, you can hire a business consultant.

Register your business

Before registering your company, pick up a name. To make your name unique you can register it as a patent. Recommended registering your business as a corporation. You can do this in the business licenses department. This is the right time to get your Tax ID Number. All this allows your business to be legal and official.

Register a USDOT number with the FMCSA

You need a U.S. Department of Transportation (USDOT) number to operate as a freight broker. You can register the number with the Federal Motor Carrier Authority (FMCSA).

Invest in some Insurance

The shipping companies with more chances will choose a professional for them. If you want to show your professionalism you better get some Insurance, they make protect for you and your clients. The most popular options are General Liability and Contingent Cargo Insurance. Study all Insurance options and choose what is more fits your business.

Get a brokerage bond

This bond shows that you are responsible, financially stable and that you can make a payment to the shippers and trucking companies if you fail your contract agreements.

Market your business

Make a site for business. Design an interesting and memorable logo. Use your marketing strategy. Run your business advertising.

If you always wanted to associate your life with shipping, but you had no idea what exactly to do, and you have no experience, you may like the freight broker job. You do not require any special knowledge or skills. You can learn and work in this profession from home. The startup cost is not so high. The industry is more than $400 million worth and it keeps growing.