HOW TO BECOME A
COMMODITY TRADING ADVISOR (CTA) OR AN INTRODUCING
BROKER (I/B)
To become a CTA
you:
To become an Introducing Broker you:
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. |
