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  • Milton Collier

How To Become a Freight Broker?

Updated: Feb 6, 2023

Experience or No Experience the Freight Industry wants you. Freight brokers play an important role in keeping supply chains functioning and moving goods across the country. Brokers connect shippers with carriers and handle the logistics involved in moving freight between companies, warehouses, distribution centers, and stores.

TranMazon has a one of a kind On-The-Job-Training program that is designed to let freight broker candidates get the proper skills and knowledge required to become a successful broker.

Everything you touch must be shipped, freight and shipping in the USA is almost an $800 billion industry, and a freight broker plays a key role in managing the millions of loads transported each year. Freight brokerage services help connect truckers to consistent work while helping shippers get the best value in getting their loads to their destinations. Being a freight broker can be a lucrative and flexible career built on connections and organizational skills.

Here’s a breakdown of what freight brokers do, and how to get a freight broker license and attain your authority in the USA. assists individuals with getting their freight broker license, becoming their own boss, or getting the right job and career.

What does a freight broker do?

They play matchmaker between shippers that need to move freight and carriers who can get the job done. Brokers make things easier for shippers and carriers by managing the logistics, such as handling the demands of traffic management, carrier sourcing, and finding loads. The best brokers help expedite shipping and control costs.

Brokers have access to large networks of carriers, so they can quickly find carriers at competitive prices. They can also accommodate different types of loads and trucking modes, such as dry vans, reefers, flatbeds, LTL, PTL, and FTL loads. For carriers, brokers can help cut out the hassle of finding shipping partners and freight to haul.

Tips for becoming a Freight Broker in the USA

While not required, it’s smart to get some experience in the transportation or logistics industry. Many brokers get that by working as truck drivers or working for a trucking company. Others work in logistics to get on-the-job training before going out on their own.

You can become a freight agent. Freight agents assist brokerages and do not require a license or operating authority. But if you don’t have experience, you’ll want to become a freight agent to get some formal training to learn the ropes.

How much do the average Freight Brokers Agents earn?

Established brokers can make six-figure salaries. The average freight broker salary is $65,000 as a base with commission adding another $45,000 with a total of $110,000.

Getting the right Freight Broker Training has one of the best in the industry training program and below are a few training subjects:

· Transportation Management System

· Transportation law

· How brokers connect shippers and motor carriers

· How to find customers

· Accounting and record-keeping practices

· Financial controls and compliance

· Sales and marketing

· Business structure

· How to set up a freight brokerage business

TranMazon training course provides you with the comprehensive training needed to gain valuable knowledge for building a successful freight brokerage or freight brokerage agency. This freight broker training course is designed to educate the student about the foundational aspects of brokering shipments. From learning the laws and terminology, setting up your business, learning about valuable tools and software, contracts and forms, how to find shippers and do ratings, and much...

Freight broker Licensing and Certification Overview. The freight industry does not require a degree or formal exam before getting a freight broker license. Freight brokers are granted operating authority by the Federal Motor Carrier Safety Authority (FMCSA), which means you need to meet its requirements.

To obtain a Broker License, you’ll need to follow several steps.

Register the Name of your Business.

Your journey to becoming a freight broker in the USA starts with setting up your company. You will need to choose a name and register your business with the state and any local authorities requiring registration.

In the USA, this means heading to the Department of Revenue. You’ll need to provide the legal name and location of your business, Employer ID Number (EIN), and the appropriate North American Industry Classification System (NAICS) code. Get EINs for free from the Internal Revenue Service. You can look up NAICS codes at the Census Bureau.

You’ll also need to choose how you want to structure your company: sole proprietor, limited liability company (LLC), partnership, or corporation. Consult with a certified accountant or tax attorney to determine which is best for you.

Get your Cargo Insurance and Liability Insurance.

Freight brokers are not required to have cargo or liability insurance to operate, but shippers usually require it. Insurance is important to protect you from liability in case anything goes wrong while doing business.

Different carriers have different requirements, but FMCSA recommends these minimum public liability insurance levels for freight forwarders and motor carriers:

Freight: $750,000 to $5 million depending on the type of commodities that are handled. $300,000 for non-hazardous freight moved in vehicles weighing less than 10,000 pounds.

Household Goods: $5,000 per vehicle and $10,000 per occurrence.

Get a Surety Bond.

Brokers must carry surety bonds of $75,000 and have a trust fund agreement to guarantee financial responsibility.

Apply for a USDOT number.

Once the above pieces are in place, apply for a USDOT number. There’s no cost, but you must register online using the FMCSA’s unified registration system.

Apply for FMCSA Licensing.

Brokers are required to register with the FMCSA to obtain their license, called an operating authority. There is a $300 non-refundable fee, and it will take between four to six weeks to process your broker authority.

To apply, you’ll need to designate a process agent in the state where they will be writing contracts. Freight brokers can designate themselves as process agent or use a third party. Process agents must live in the state and act as the official designee for any legal documents or correspondence on behalf of the broker.

Starting as a Freight Broker in the USA

With these legal requirements out of the way, it’s time to get to work! Pick a process agent for applicable territories. If you plan to do business in multiple states, you’ll need to register in each state and pick a process agent. Many brokerages and trucking companies choose to use a third-party company that has multiple locations and can serve as a process agent for multiple states to streamline operations.

Arrange Brokerage Funding.

You’ll also need starting capital. There are multiple options to consider, including private funding. The number one source is finding the right Factoring Company.

Order Brokerage Supplies.

You’ll need basic office supplies, a computer or laptop, mobile phone, freight brokering software and Toolbox.

Plan your Marketing Strategy.

So, you’ve got everything in place to get started. Now, you need customers! Besides using a load board, you’ll need to plan your marketing strategy. First, identify the markets and companies you want to target.

Before you start any outreach effort, determine your unique value proposition (UVP). What do you bring to the table that your competitors do not? There are more than 106,000 freight brokers and freight-forwarding companies across the country. To get their attention, you’ll need to explain what you do better.

Your UVP might be lower margins, faster bookings, superior customer service, a personal touch, or more. This value proposition will become the basis for your introduction to try to solicit business.

Now it’s Time to Get Started.

Go to and click on Virtual Freight Broker Wanted......

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