How Much Does It Cost To Become A Freight Broker?

April 10, 2025

As with many careers, entering the freight brokerage industry comes with a number of initial and recurring costs. From obtaining authority to buying software, there are many expenses that are simply unavoidable.

So, how much does it cost to become a freight broker?

In this article, we discuss the upfront and continuing costs of a career in freight brokering. We also provide you with tips for keeping some of these expenses in check.

Freight Broker Startup Costs

There are various costs associated with becoming a freight broker. Some of them, like paying for your freight broker license, apply to everyone. On the other hand, paying for office equipment only applies to new freight brokers who want to start their own businesses.

In this section, we’ll take a look at all the startup costs to consider when you’re starting a freight broker business or applying to work for an established firm.

Freight broker authority cost

Earlier, we mentioned that one of the costs of becoming a broker is paying for your freight broker license. However, there isn’t a specific license for freight brokering in the U.S. When we talk about a freight broker license, what we actually mean is obtaining authority from the Federal Motor Carrier Safety Administration (FMCSA).

This is a legal requirement that all freight brokers must comply with. So, how much does freight broker authority cost? The good news is that becoming a licensed freight broker isn’t too expensive – it costs $300 to apply for your authority.

Freight broker bond cost

In addition to your broker authority, you’re also legally required to obtain a $75,000 freight broker surety bond. Don’t worry – this doesn’t mean you’ll need to pay the whole $75,000 yourself.

Instead, you’ll need to find a reputable surety bond company that can issue the bond on your behalf. The company will ask you to complete an application that includes details like your credit history and proposed business structure.

Then, the company will set an annual premium that you must pay in return for your freight broker bond, the amount of which is primarily based on your credit score.

Generally, if you have good credit, your premium will be around 1.25% to 3.25% of the total bond cost. This means you’ll pay around $938 to $2,438 annually. However, if you have bad credit, the premium may be as high as 12%. In this case, you’ll be paying around $9,000 per year.

Business registration cost

If you want to start your own freight brokerage business, you’ll need to factor in the costs associated with registering your company. In this scenario, you’ll need to register your business before you apply for your broker authority.

First, you have to choose a legal business structure. The most common options are:

Sole Proprietorship
Limited Liability Company (LLC)
Corporation

These costs vary by state so you’ll need to find out what fees apply in your specific location. For example, it usually costs between $100 to $300 to form an LLC.

Additionally, you need to obtain an Employer Identification Number (EIN) from the IRS but, fortunately, this is free.

Insurance policies cost (optional)

Freight brokers are not legally required to take out cargo, property, or liability insurance. Still, it’s often a good idea to do so, as it protects you in certain situations, such as in the event of accidental cargo damage. Plus, having insurance can increase your credibility among shippers.

Generally, expect to pay around $1,500 per year for contingent cargo insurance. If you also want to take out property and liability insurance, you’ll need to pay an extra approximately $1,500 per year for each of these policies.

Additionally, if you run a freight brokerage with other employees, you must obtain workers’ compensation insurance, the costs of which vary widely by state.

Freight brokerage software cost

If you’re starting a freight broker business, you need to factor in the cost of purchasing software. The two essential pieces of software for running a brokerage are a transportation management system (TMS) and a load board.

This overall cost can be around $1,000 annually if you choose fairly simple systems. However, if you’re looking for more complex systems, you could easily pay $2,000 to $3,000 per year. This may seem like a lot but a TMS and a load board are both vital to your business. Here’s why:

TMS: A TMS helps you manage things like dispatching, tracking shipments, invoicing, and performance analytics. It allows you to streamline workflows, reduce manual errors, and scale your brokerage.
Load board: A load board is essentially an online marketplace where you post available freight and connect with carriers looking for loads. It’s crucial for finding reliable carriers and keeping freight moving.

Office equipment cost

Even if you plan to work from a home office, you’ll still need some basic equipment to operate efficiently. This includes things like printers, phones, fax machines, and computers. Of course, the costs of office equipment vary greatly depending on the size of your operation.

If you plan to be your business’s sole employee, you should expect to pay around $1,000 upfront for equipment and around $200 per month in recurring expenses.

Just bear in mind that this figure will be much higher if you need to rent an office space, hire more employees, or need more complex equipment.

Freight broker training cost

There are no formal requirements for a freight broker to have any kind of training or certification. Yet, training is the best way to prepare yourself for a successful career in the industry.

Typically, these courses can cost as much as $1,500, but the 90-Day Freight Broker Course is much more affordable, at just $890. For this fee, you gain access to the most comprehensive training modules available, including:

Researching and vetting carriers
Negotiating rates between shippers and carriers
Tracking and tracing loads
Cash flow management
Prospecting and lead generation

The course consists of 100 hours of material that’s available in audio, text, and video formats. Plus, we’ll give you a full 30-day refund if you’re not satisfied. So, sign up for the waitlist now and you could be a freight broker in 90 days or less!

What’s The Total Cost Of Becoming A Freight Broker?

The total amount it costs to become a freight broker varies depending on whether you start a business or work for an established firm.

Total cost of working for an established firm

If you’re hired by an existing freight brokerage that provides you with software and equipment, your only costs will be:

FMCSA broker authority fee: $300 (one-time)
Surety bond premium: $938 to $9,000 per year

So, if we assume you have good credit and that you opt to enroll in the 90-Day Freight Broker Course ($890), your total startup costs would be $1,190 plus an annual fee of around $938.

Total cost of starting your own freight brokerage business

If you start your own business the costs will be much higher. For example, let’s say you start a business with good credit, take out cargo insurance, buy TMS and load board software, and purchase the most basic equipment. This means your total costs would be around:

Expense	Cost
FMCSA broker authority	$300
Surety bond premium	$938 per year
Business registration	$100-$300
Cargo insurance	$1,500 per year
TMS & load board	$1,000 per year
Office equipment	$1,000 upfront & $200 per month
Training	$890
Upfront total (approx)	$2,290
Recurring costs (approx)	$5,838 per year

Other Costs To Watch Out For

Now, we’re going to take a look at some recurring costs you need to consider once you’re up and running. This is important, as many new freight brokers assume that all the costs are upfront when, in reality, there are a number of expenses that only arise once you’re operating.

Re-filing fees

If you make mistakes in your initial FMCSA registration or business licensing paperwork, you may need to pay to re-file your applications. These fees are fairly minor but they can add up, especially if you need to expedite corrections to avoid delays.

Of course, the best way to avoid these fees is to ensure all of your paperwork is filed correctly the first time around.

Compliance-related expenses

Maintaining compliance with federal and state regulations also comes with recurring costs due to factors like updates, audits, and renewals. For example, your BOC-3 filing can carry additional costs.

It’s crucial you remain compliant as failing to do so can lead to fines, or even the temporary suspension of your freight brokers’ operating authority.

Marketing and lead generation

Using marketing to generate leads is an important part of running a brokering business. After all, this is one of the primary ways you’ll make shippers and carriers aware of your company and convince them to become clients.

Your marketing costs will depend on the complexity of your strategy and which tactics you use. For instance, your expenses may include:

Investing in cold outreach tools
Paying for online ads
Building a professional website

Marketing can become a significant expense but, without it, even the best-run brokerages struggle to generate revenue.

How To Reduce The Cost Of Your Surety Bond

Clearly, there are a fairly high number of startup and ongoing costs involved in becoming a freight broker. While some of these costs are fixed (e.g. the FMCSA registration fee), there are steps you can take to reduce the cost of your surety bond premium. These include:

Improving your credit score: As mentioned, your premium is largely based on your credit score. So, if you have a poor credit score, it’s worth trying to improve it before applying for a surety bond to help keep costs down.
Demonstrating experience: While it isn’t required to enter the industry, demonstrating some level of experience can lead to lower premiums. Therefore, if you do have any experience in freight brokerage, make sure you disclose this in your application.
Listing your assets: Ensure you list all of your assets in your application such as licensure, capital, and collateral.
Obtaining a green card: If you’re not a U.S. citizen, obtaining a green card can reduce the costs of your premiums significantly. Of course, this is easier said than done but, if possible, this will save you a lot of money.
Researching surety bond companies: Always research several freight broker surety bond companies and gather multiple premium quotes. Some companies specialize in working with new brokers or individuals with bad credit.

Final Thoughts

Overall, it’s much more affordable to obtain your authority and then work for an established firm. Yet, while the costs of starting a brokering business are much higher, it does give you unlimited earning potential.

Ultimately, using the information in this article, you’ll be able to decide which option is the most financially realistic one for you. Whichever path you choose, a career in the freight industry can be highly lucrative and the initial investment will be well worth it if you’re successful.

FAQs

1. Does it cost less to become a freight agent than a broker?

Yes, it costs a lot less to become a freight agent than a broker. This is because freight brokers act under their own authority and have to secure a surety bond. On the other hand, freight agents act under the authority of a broker and don’t need a surety bond.

2. Can I pay the full freight broker bond upfront?

Yes, if you have the funds, you can place $75,000 into a trust fund instead of securing a bond through a company and paying a premium. This is known as the BMC-85 trust fund option. However, this isn’t a common approach as it ties up a large amount of capital that you could otherwise invest in your business.

3. Can I get a loan to start my own freight brokerage?

Yes, many new brokers take out loans to cover the startup costs of their businesses. The most common loan options include:

Personal loans
Small business loans
Business credit cards
Lines of credit

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