HOW TO BECOME A COMMODITY TRADING ADVISOR (CTA) OR AN  INTRODUCING BROKER (I/B)

To become a CTA you:

• Pass the Series 3 exam

• Join the National Futures Association ("NFA") as a CTA

• Submit your Disclosure Document to the NFA/CFTC for registration

To become an Introducing Broker you:

• Pass the Series 3 exam

• Join the NFA as an Introducing Broker

• Set up a clearing arrangement with a Futures Commission Merchant

The NFA requires an IB to have a net worth of $45,000.00. If the firm doesn't have the capital necessary, it may establish a "Guaranteed Introducing Broker" where the clearing FCM "provides" the equity. As a guaranteed IB, the IB can only clear through its guaranteeing FCM. An independent IB (one that meets the net worth requirement) can establish clearing relationships with multiple FCMs.

You can study for the Series 3 exam while your application forms are being created and processed -- but your registration isn't complete until you finish all steps and show proof of passing the Series 3 exam.

Series 3 National Commodity Futures Exam

The Series 3 National Commodity Futures Exam is the exam that is required in order to register with the National Futures Association as an Associated Person, Commodity Trading Adviser, Commodity Pool Operator, or Introducing Broker. It's a 2.5 hour 120 question exam divided into rules and market knowledge. You need a 70% on both parts at one sitting to pass.

You do not need a sponsor in order to sit for the Series 3 exam.

The Series 3 exam is given Monday - Friday at Prometric or Pearson VUE Testing centers across the U.S. and many overseas locations. Webseries7 can help with test registration if you wish.

Investment Reference, an affiliate of Webseries7, offers consulting services for NFA and CFTC applicants.

Investment Reference will complete Introducing Broker application forms and assist in office procedure set-up, compliance guidelines, and internal control. Preparatory "NFA mock audits" can be done to assist in meeting NFA rules and requirements.

For Commodity Trading Advisers, Investment Reference will develop the Disclosure Document plus all NFA application forms.

There is no charge for an initial consultation.

Need a test application form U-10? Click here  

Order your Series 3 study materials and to see a course description click here.