Dispatcher or broker? The difference that matters.
Updated September 27, 2026 · City DD Dispatch Desk
A truck dispatcher works for you, the carrier: finds loads, negotiates rates and handles paperwork, and you pay them a fee. A freight broker sits between the shipper and the carrier: it sells the freight, pays the carrier and keeps the margin. In the US a broker needs FMCSA broker authority and $75,000 in financial security; a dispatcher that acts only as the carrier's agent doesn't.
- Dispatcher = your agent
- Broker = the middle, keeps the margin
- Freight money should never go through your dispatcher
Dispatcher vs broker.
What turns a dispatcher into an unlicensed broker.
- Taking payment from shippers or brokers instead of the carrier.
- Soliciting freight directly from shippers on its own account.
- Choosing which of its carriers gets a load.
- Working without a written agreement with the carrier.
- Having the freight money run through its own bank account.
The details
FMCSA's June 2023 guidance says a dispatch service can act as a carrier's bona fide agent without broker authority, but not if it exercises discretion in allocating loads between carriers. Unlicensed brokering carries civil penalties of up to $10,000 per violation under US law, and they can reach a company's officers personally (49 U.S.C. 14916).
When you're hiring a dispatcher.
- They want the broker to pay them, not you.
- They say they have their own freight to sell you.
- They won't show you the rate confirmation.
- They sign rate cons for you without asking.
- They guarantee a rate or a weekly number.
No single national broker licence.
Canada doesn't have a national freight broker licence like the US. Provinces set their own rules, so a broker working in Canada should check the rules where it operates. A dispatcher is still the carrier's agent either way.
Your agent, in your name.
We're a dispatcher, not a broker. Every load is booked in your name under your authority, the broker pays you or your factor directly, and we offer each load to one carrier only. You see our fee on every load before you say yes.
See what we charge- FMCSA: Broker and freight forwarder financial responsibility
- Federal Register: Definitions of Broker and Bona Fide Agents (June 16, 2023)
- 49 U.S.C. 14916: Unlawful brokerage activities
General information, not advice. Check the rules with the agency before you run.
Why we say this
Requirements change and this page may not be current: confirm anything regulatory with the relevant agency or your own advisor before you run. We'll flag what we see during setup, but the obligation sits with the carrier and its authority.
Answered straight.
Is a dispatcher cheaper than a broker?
They're different jobs. A broker's margin is built into the rate you're offered, so you never see it. A dispatcher's fee is visible and paid by you; ours is 5–10% of linehaul, 7% on most loads.
Does a dispatcher need an MC number or broker authority?
In the US, not if it acts only as the carrier's agent, what FMCSA calls a bona fide agent. If it starts acting like a broker, it needs broker authority and $75,000 in financial security.
Who does the broker pay when I use a dispatcher?
You, or your factoring company. If a dispatcher asks for the freight money to go through them, treat it as a red flag.
Can one dispatcher work for several carriers?
Yes, but under FMCSA's guidance a dispatcher can't pick and choose which carrier gets a load. We offer each load to one carrier only.
Can a dispatcher book loads straight from shippers?
Under FMCSA's guidance, a dispatcher that solicits or negotiates freight directly with shippers starts to look like a broker. We book loads from brokers, in your name.
Want a dispatcher who handles this for you?
Within one business day. No sales pitch, no contract.
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