Are you interested in the logistics industry? If so, you may be considering a career as a freight broker. A freight broker acts as an intermediary between shippers and carriers to facilitate the transportation of goods.
In this guide, we’ll explore what a freight broker does, how much they can make, the pros and cons of becoming one, and how to start your own freight brokerage. Consider this your Ultimate How-To Guide – updated for 2025.
What is a freight broker?
A freight broker serves as the crucial link between shippers and carriers. They ensure that goods are transported efficiently by connecting businesses that need to move freight with carriers who can handle the job.
Freight brokers play an essential role in the transportation industry, taking on responsibilities such as:
- Negotiating rates
- Managing logistics and paperwork
- Finding the best deals for clients
- Ensuring compliance with industry regulations
- Building lasting relationships with clients and carriers
- Staying informed on industry trends and compliance requirements
What does a freight broker do?
Now let’s get into specifics. Freight brokers handle a variety of tasks, including:
Matching Shippers with Carriers
Freight brokers assess shippers’ needs and match them with reliable carriers who can transport their goods efficiently.
Negotiating Rates
Brokers negotiate freight rates between shippers and carriers, ensuring fair pricing and profitability for both parties.
Tracking Shipments
Freight brokers monitor shipments to confirm on-time delivery and proper handling. They also address any issues that arise during transit.
How much do freight brokers make?
Freight brokers have high earning potential, with annual incomes ranging from under $50,000 to well over $100,000, depending on experience, location, and client base.
According to ZipRecruiter, the average annual salary for freight brokers nationwide in 2025 is $66,677. Glassdoor estimates the average salary to be higher: $76,886.
Pros & Cons of Becoming a Freight Broker
Like any profession, there are advantages and challenges to consider.
Pros of Being a Freight Broker
- High earning potential: Freight brokers can earn a good living.
- Flexibility: Freight brokers can work from home or in an office. They often work independently.
- Relationships: Brokers can build lasting connections with carriers and clients.
- Variety: The job is dynamic and engaging, with different challenges each day.
Cons of Being a Freight Broker
- Competition: The freight brokerage industry is competitive, requiring adaptability and strong business skills.
- High Stress Levels: Brokers are responsible for timely deliveries and financial management.
- Long hours: Many brokers work extended hours to manage shipments efficiently.
How to Start a Freight Brokerage
If you’re interested in starting a freight broker business, follow these essential steps.
1. Gain the right experience.
Before launching your own business, work in logistics or for an established freight brokerage to develop expertise.
2. Set up your business correctly.
Once you have the necessary experience, you must set up your business. This includes obtaining any required licenses and permits, getting bonded, creating a business plan, and establishing your business structure.
3. Get licensed and bonded.
To become a freight broker, you must obtain a license from the Federal Motor Carrier Safety Administration (FMCSA). This license requires passing a test and getting a freight broker bond (BMC-84) and insurance.
You’ll find more detailed information on everything you need to obtain your freight broker license (with links to forms and resources) on our Freight Broker Surety Bonds page. We also have a fun infographic that shares information in a digestible way!
If you plan to become a transportation service provider (TSP) for the Military Surface Deployment and Distribution Command (SDDC), you’ll also need an SDDC performance bond.
4. Find clients.
After obtaining your license, it’ll be time to build your client base. Reach out to potential clients, build relationships, and continue providing excellent service to ensure repeat business. Attending trade shows, networking with other companies, and advertising may offer great opportunities for creating new connections.
5. Maintain legal compliance.
Ensure your business follows FMCSA regulations and industry standards to remain in good standing year after year.
Helpful Resources for Freight Brokers
Various resources are available to help freight brokers succeed and stay current on industry trends, regulations, and best practices. Here are some of the top regulatory agencies, professional associations, and industry publications.
- The Federal Motor Carrier Safety Administration/FMCSA (fmcsa.dot.gov)
- Transportation Intermediaries Association/TIA (tianet.org)
- National Customs Brokers & Forwarders Association of America (ncbfaa.org)
- Transport Topics: Industry News (ttnews.com)
- FreightWaves: Logistics Insights (freightwaves.com)
People Often Ask
How long does it take to become a freight broker?
Most people complete the process within a few to several months, including gaining experience, obtaining the necessary licenses, and setting up a business.
What skills do I need to become a freight broker?
Strong communication, negotiation, and time management skills are crucial. The ability to work independently and adapt to changes is also important.
Is it expensive to become a freight broker?
Expect to invest several thousand dollars in startup costs, including licensing fees, insurance, bonds, and business setup expenses. The FMCSA licensing fee is $300, while bond and insurance costs vary.
What’s the difference between a freight broker and a freight forwarder?
While freight brokers and freight forwarders both work in the transportation industry, they have distinct roles and responsibilities.
- Freight broker: Connect shippers with carriers who have the capacity to transport their goods.
- Freight forwarder: Manage shipments from start to finish, including documentation, consolidation, and customs clearance.
In short, freight brokers work to connect shippers with carriers, while freight forwarders focus on organizing and managing the transportation of goods from start to finish.
Need a freight broker bond to start your business?
Becoming a freight broker can be a rewarding career choice with high earning potential and flexibility. By gaining industry experience, obtaining the necessary credentials, and building strong relationships with clients and carriers, you can establish a successful freight brokerage business in 2025 and beyond.
We can help you find the right surety bond for your freight broker business and file it with the FMCSA for you. ZipBonds offers the fastest and most secure option for getting bonded. Our all-digital platform is intuitive and straightforward. Apply online or call us at 888-435-4191 to speak with an agent directly.