Retail Foreign Exchange Dealer
a.k.a. RFED
A US regulatory category for firms that take the other side of retail customers' forex trades.
In plain English
A US regulatory category for firms that take the other side of retail customers' forex trades.
A Retail Foreign Exchange Dealer (RFED) is a firm registered with the CFTC that acts as the counterparty to retail forex trades, and must be a member of the NFA. It has to meet capital requirements and follow strict rules on things like leverage caps and reporting.
If you are in the US, your forex broker should be either an RFED or a futures commission merchant. Anyone else offering you leveraged forex is a big warning sign.
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