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. Securities Exam Preparation can help with test registration if you
wish.
Investment
Reference, an affiliate of Securities
Exam Preparation, 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 study materials and to see a course
description click here.
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