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To become a discount futures broker, pass the Series 3 exam, register with the NFA, and secure a position with a brokerage agency or establish your own business. Sponsorship is an option, and passing the National Commodity Futures Exam is required. Register with FINRA and the NFA, and job search to become a discount futures broker.
To become a discount futures broker, an individual needs to pass the Series 3 exam, register with the National Futures Association (NFA), and secure a position with a futures brokerage agency. An alternative to obtaining an agency position is to establish your own brokerage business. Some brokerage agencies solicit applicants for sponsorship. The sponsored candidate will temporarily secure a position with the agency, but is required to pass all testing and licensing requirements.
The first thing you need to do to become a discount futures broker is to decide if you want to get Series 3 sponsorship from an agency. Internet job board sites, as well as local newspapers and trade magazines, may feature advertisements for brokerage positions. In the job advertisement, it can be stated that the agency is willing to train and hire candidates who successfully complete the Series 3 exam requirement within a specified time period.
Passing the National Commodity Futures Exam or Series 3 is a requirement to become a discount futures broker. The exam covers the market rules and regulations involved in trading commodities and futures. Proper preparation for the exam is recommended. Exam preparation materials are available from a variety of vendors if you choose to earn your certification without sponsorship.
To register for the Series 3 exam, contact FINRA (Financial Industry Regulatory Authority). They administer the exam from multiple locations most days of the week. The test consists of 120 multiple-choice questions and takes approximately two and a half hours to complete. A score of at least 70% must be achieved to pass.
After passing the Series 3 exam, the next step in becoming a discount futures broker is to register with the NFA. This registration must be completed as an “Associated Person”. You will need to submit an online application form, fingerprint cards, proof of Series 3 exam results and a non-refundable fee. A verification of the registration form will also need to be carried out.
Once you register with the NFA, you can start your own company or get a position with an established agency. If you obtained sponsorship from an agency before completing your exam and registration, you have completed all necessary steps. The company that sponsored you may have additional requirements and training that you will need to complete.
If you did not obtain sponsorship prior to taking the exam, you will need to complete a job search to become a discount futures broker. Professional organizations, career services, employment agencies, newspapers, and online classifieds are a good place to start. As an applicant who has already secured Series 3 licensing and registration, you may have an advantage over other applicants who do not.
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