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.
BREAKING DOWN '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.