What Is Freight Broker in Trucking?
Business & Finance
A freight broker is a company that sells or arranges truck transportation but does not haul the freight itself. Federal law (49 U.S.C. §13102) defines a broker this way. A broker needs its own FMCSA registration and a $75,000 surety bond or trust fund. It earns the margin between what the shipper pays and what the carrier is paid. You have a legal right to review the broker's record of your load.
Last reviewed September 23, 2026 · Facts checked October 15, 2026
Key Points
- By law, a broker is a company that sells, offers, negotiates or holds itself out as providing or arranging truck transportation for pay. It is not a motor carrier (49 U.S.C. §13102)
- A broker must be registered with FMCSA, and it must employ an officer with at least 3 years of relevant experience or proof of knowledge (49 U.S.C. §13904)
- A broker must keep a $75,000 surety bond (BMC-84) or trust fund (BMC-85) in effect, and FMCSA will not register a broker without it (49 CFR §387.307)
- If bond or trust fund payments drop the balance below $75,000, the surety or bank must tell FMCSA within 2 business days. FMCSA can then suspend the broker's authority within 7 business days unless the money is restored
- A broker must keep a record of each load for 3 years, including what the broker was paid. Each party to the load has the right to review it (49 CFR §371.3)
- Broker margin is the difference between what the shipper pays the broker and what the broker pays the carrier
- Check a broker's authority status and payment history before you haul for them, especially a new one
What does a freight broker actually do?
A freight broker's core job is matching freight that needs to move with a carrier that has capacity to move it. The broker finds loads from shippers and posts or offers them to carriers (directly or via load boards). It negotiates rates on both sides and handles much of the paperwork and communication in between. The broker never takes physical possession of the freight or runs the truck. A company that both brokers and hauls some freight itself needs both broker authority and carrier operating authority, as separate legal roles.
What does the broker bond protect, and how does a claim work?
The $75,000 bond or trust fund is there to pay shippers or carriers if the broker fails to carry out its contracts. When a claim comes in, the surety or bank gives the broker 7 business days to say whether the claim is valid. If the broker does not answer and the claim is valid, the surety or bank can pay it from the bond. If payments push the balance below $75,000, it must tell FMCSA within 2 business days. FMCSA then warns the broker that its authority will be suspended within 7 business days unless the bond is restored or the claims are settled. A bond claim can still be slow, so vet a broker's payment record too.
Can I see how much the broker is paid on my load?
Yes, you have the right to review the record. Federal rules say a broker must keep a record of each transaction for 3 years. It must show the name of the shipper, the carrier, the bill of lading number, how much the broker was paid, and when the carrier was paid. Each party to the transaction has the right to review that record (49 CFR §371.3). The rule does not say how fast the broker must show it, so ask in writing and keep a copy of your request.
Why does the difference between a broker and a carrier matter?
Mixing up a broker with a carrier matters for a practical reason. A broker is not the carrier named on the bill of lading. A broker's insurance generally doesn't cover cargo loss the way a carrier's cargo insurance does. Know whether the company offering a load is acting as the broker or as the carrier of record. It affects who's actually responsible if something goes wrong with the freight.
Related Terms
Related Free Tools
Authority Age and History Checker
Enter an MC or USDOT number to see how long the authority has been active, every revocation and reinstatement, and every insurance filing.
Broker Credit Checker
A live FMCSA authority and bond check, plus a scoring worksheet for payment history and complaints before you haul.
Broker Payment Tracker
Track every invoice — who owes you, how late they pay, and flag slow payers.
Carrier & Broker Lookup
Verify MC/DOT authority, check credit scores, and spot red flags before hauling.
Frequently Asked Questions
What's the difference between a freight broker and a carrier?+
A carrier physically transports the freight using its own (or leased) trucks and drivers. It is liable for the cargo under the bill of lading. A freight broker arranges the transportation without owning trucks or moving the freight itself. It earns the margin between what the shipper pays and what the carrier is paid. A company can hold both broker and carrier authority, but they're distinct legal roles.
How are freight brokers paid?+
A broker's revenue is the margin between what the shipper pays for the load and what the broker pays the carrier. That margin varies widely by lane, freight type, and relationship. It is usually not a flat commission. Federal rules require the broker to keep a record of what it was paid on each load, and you can ask to review it.
Do freight brokers need a license?+
Yes. A broker must be registered with FMCSA, which is called broker authority, and it gets an MC number. FMCSA registers a broker only if it has the right experience and is fit to comply with the rules. FMCSA rules also require a $75,000 surety bond or trust fund before the broker can be registered.
Why do freight brokers need a bond?+
The $75,000 surety bond or trust fund gives shippers and carriers a way to be paid if a broker fails to carry out its contracts. It is a baseline protection. A claim can be slow, and the bond can be used up by other claims. That is why many carriers also check a broker's payment history and credit before hauling for them.
Can a carrier see how much the broker makes on a load?+
Yes. Under 49 CFR §371.3, a broker must keep a record of each transaction for 3 years, and each party to the transaction has the right to review it. The record shows what the broker was paid. Ask in writing, and keep your rate confirmation and bill of lading with your request.
How do I check a freight broker before I haul for them?+
Look up the broker's MC number on FMCSA's Licensing and Insurance site and check that its authority is active. Then check its payment history and credit with a broker credit checker, and ask other carriers about it. A new broker, or one that asks you to move a load fast with no paperwork, deserves extra care.
Is a dispatcher the same as a freight broker?+
No. A broker arranges transportation between a shipper and a carrier and is paid from the shipment. A dispatcher works for the carrier. It finds and books loads for the truck, and the carrier pays it. Grow Trucking is a dispatch service. It never brokers your freight to another carrier.
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This is industry terminology and typical practice. It is not legal or tax advice. Rates, fees, and rules mentioned are general ranges. Confirm the details on your rate confirmation, carrier agreement, or a current official source.