Today, I would like to discuss one of our most frequently asked questions: “How do I get my Freight Broker License?”
The “Freight Broker License” causes a lot of confusion for those looking to enter this industry. And there is a lot of misleading information circling around about it, so let’s discuss what it is when you need it, and how to obtain it.
What is a Freight Broker License?
A freight brokers license is actually called a broker’s authority. It is issued by the Federal Motor Carrier Safety Administration (FMCSA), which is a government agency/division of the Department of Transportation (DOT).
When do you need a Broker’s Authority?
If you are working as a freight broker agent, under an existing broker, you do not need an authority, because you’d be operating under the umbrella of their broker’s authority.
If you have your own trucking company and want to fill your own loads, again, you do not need an authority. You will only need one if you are arranging transportation for profit using a third party carrier.
If you are opening your own brokerage, you do need an authority. Keep in mind, if you are taking this route, you will also need a $75,000 Surety Bond, which you can obtain from a bank or bonding company. The cost-per-year will vary depending on your personal credit. You will also need a Processing Agent and a Unified Carrier Registration (UCR). You can obtain both for under a few hundred dollars. Remember, you must have all of these in order to open your own brokerage.
How do you Obtain a Broker’s Authority?
This is one of the common misconceptions. There is no training program, class, or test you need to take in order to get your broker’s authority. If someone tells you otherwise, turn the other way because they are misleading you. All you need to do is pay a $300 fee to the FMCSA and fill out the OP-1 form and file for your authority to operate as a broker. It’s that simple - anyone can obtain it.
What we do, here at Brooke, is teach you how the business works and how to actually make a profit with that license if you’re opening your own brokerage. We can also teach you how to become a successful agent. Whatever your goals, we will do our best to help you achieve them.
Questions? Give us a call 214-206-1169 or visit our website brooketraining.com
Moving forward,
Jeff Roach
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