Retail Foreign Exchange Dealer - RFED

AAA

DEFINITION of 'Retail Foreign Exchange Dealer - RFED'

An individual or organization that acts as a counterparty to an over-the-counter foreign currency transaction where buying and selling of financial instruments does not involve any of the exchanges. Retail foreign exchange dealers (RFED) complete futures contracts, options on futures contracts or options contract with people who are not eligible contract participants.



INVESTOPEDIA EXPLAINS 'Retail Foreign Exchange Dealer - RFED'

RFEDs are required to become members of the National Futures Association (NFA) in order to conduct business with the public. RFEDs are also required to have at least one principal who is a "forex associated person". An associated person is a person who solicits orders, customers or customer funds or who supervises persons involved in these types of jobs.



RELATED TERMS
  1. Foreign Exchange

    The exchange of one currency for another, or the conversion of ...
  2. Commodity Futures Trading Commission ...

    An independent U.S. federal agency established by the Commodity ...
  3. Futures Contract

    A contractual agreement, generally made on the trading floor ...
  4. National Futures Association - ...

    The independent self-regulatory organization for the U.S. futures ...
  5. Authorized Forex Dealer

    Any type of financial institution that has received authorization ...
  6. ICE LIBOR

    See LIBOR
Related Articles
  1. Forex Education

    Forex Basics: Setting Up An Account

    The line between profitable forex trading and ending up in the red may be as simple as choosing the right account.
  2. Forex Education

    5 Tips For Selecting A Forex Broker

    Discover the best ways to find a broker who will help you succeed in the forex market.
  3. Forex Education

    Top 10 Forex Trading Rules

    Get some guidelines on how to survive - and thrive - in a variety of markets.
  4. Options & Futures

    What are the differences between divergence and convergence?

    Find out what technical analysts mean when they talk about a market experiencing divergence or convergence and how they affect trading strategies.
  5. Options & Futures

    Futures Quotes Explained The "Easy" Way

    If there’s a security whose price fluctuates, there can theoretically be a futures marketplace for it.
  6. Options & Futures

    Why is the Accumulative Swing Index helpful for traders and/or investors?

    Find out why J. Welles Wilder believed that the accumulative swing index could be used in the futures markets to indicate long-term trends.
  7. Options & Futures

    Stock Futures vs Stock Options

    A full analysis of when is it better to trade stock futures vs when is it better to trade options on a particular stock. A quick overview of how each of them works and why would a trader, investor, ...
  8. Options & Futures

    The Potential Of Low-Priced Options

    The benefits of trading low-priced options, and learning how to pinpoint them, can be a very profitable strategy for an options trader.
  9. First time stock investors may ask, is there any way to buy insurance on stocks to prevent losses?
    Options & Futures

    Stock Safety: Top 3 Ways to Limit Your Losses

    First time stock investors may ask, is there any way to buy insurance on stocks to prevent losses?
  10. Investors can use derivative securities to effectively buy insurance on their individual holdings or on their portfolio as a whole.
    Options & Futures

    Can You Buy Stock Insurace? 3 Strategies to Limit Stock Losses

    Investors can use derivative securities to effectively buy insurance on their individual holdings or on their portfolio as a whole.

You May Also Like

Hot Definitions
  1. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  2. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  3. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  4. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
  5. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
  6. Law Of Supply And Demand

    A theory explaining the interaction between the supply of a resource and the demand for that resource. The law of supply ...
Trading Center