HOW TO BECOME A COMMODITY TRADING ADVISOR (CTA)
To become a Commodity Trading Advisor 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
 The Disclosure Document is a document that includes, among other things, who the CTA is, where they are located, office hours, background, a description of the program, types of accounts accepted, management and incentives fees, power of attorney form, management agreement, and performance history.
It’s important the that the disclosure document properly reflect your intended services and fees – accordingly, a professional who prepares these documents on a regular basis could be very useful.
You might want to contact Investment Reference to help prepare your Disclosure Document and NFA application forms. You can go to their site by clicking here.
In addition, you may need an accounting firm to keep track of your performance history and prepare it for you in NFA required format. You might want to contact the CPA firm of Donahue & Associates, LLC by clicking here.
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 test 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. The NFA is beginning to require salespeople who work in foreign exchange (ForEx) to pass the Series
3 test.
The Series 3 exam a 2.5 hour 120 question test 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. You submit your own U-10 test
application form, set a test date, and sit for the exam.
Remember, passing the test is only one step in becoming
registered – and you can’t solicit until you are
completely registered.
FINRA EXAMS:
Registered Representative Level
Registered Principal Level
Others
Note:
All exams are continually being updated.
You should take
your exam within 4 months of purchasing your materials. |