To become a discount futures broker, a person must pass the Series 3 exam, register with the National Futures Association (NFA), and find work with a futures brokerage firm. Establishing your own brokerage business is an alternative to working for an agency. A few brokerage firms look for sponsorship candidates. The sponsored candidate will be hired on a temporary basis by the agency, but must complete all testing and licensing requirements.
To become a discount futures broker, the first step is to decide whether you want to seek Series 3 sponsorship from an agency. Brokerage positions may be advertised on job board sites, as well as in local newspapers and trade magazines. It may be stated in the job advertisement that the agency is willing to train and hire candidates who pass the Series 3 exam requirement within a certain amount of time.
To become a discount futures broker, you must pass the National Commodities Futures Exam or the Series 3 exam. The exam covers the market rules and regulations that apply to commodity and futures trading. It is strongly advised that you prepare adequately for the exam. If you want to get your exam certification without sponsorship, you can get exam preparation materials from a variety of vendors.
Contact the Financial Industry Regulatory Authority to register for the Series 3 exam (FINRA). On most weekdays, they administer the exam from multiple locations. The exam has 120 multiple-choice questions and takes about two and a half hours to complete. In order to pass, you must achieve a score of at least 70%.
The next step in becoming a discount futures broker is to register with the NFA after passing the Series 3 exam. This form should be filled out as a “Associated Person.” An online registration form, fingerprint cards, proof of your Series 3 exam results, and a non-refundable fee must be submitted. A verification of the registration form will be required as well.
After registering with the NFA, you have the option of starting your own business or working for an established agency. You have completed all of the necessary steps if you obtained sponsorship from an agency prior to completing your exam and registration. You may be required to complete additional requirements and training by the company that sponsored you.
If you didn’t get sponsorship before taking the exam, you’ll have to look for a job to become a discount futures broker. Professional organizations, career services, job placement agencies, and newspaper and online classifieds are all good places to start. Candidates who have already obtained Series 3 licensing and registration may have an advantage over those who have not.