DEFINITION of 'Authorized Forex Dealer'

An authorized forex dealer is a type of financial institution that has received authorization from a relevant regulatory body to act as a dealer involved with the trading of foreign currencies. Dealing with authorized forex dealers ensures that your transactions are being executed in a legal and just way.

These forex dealers will then deal directly with larger brokerage firms or banks when they wish to transact or clear any risk.

BREAKING DOWN 'Authorized Forex Dealer'

In the United States, one regulatory body responsible for authorizing forex dealers is the National Futures Association (NFA). The NFA ensures that authorized forex dealers are subject to stringent screening upon registration and strong enforcement of regulations upon approval.

Investors looking to trade foreign exchange should do so through an authorized dealer. By doing so, the investors will know they are dealing with an experienced and well-qualified party, and should anything go wrong they will have the support of the NFA to investigate any issue that may arise. 


  1. Dealer Incentive

    A corporate sales strategy in which the price a dealer has to ...
  2. Privilege Dealer

    An individual or a securities firm that is registered as a market ...
  3. Purchase and Resale Agreements ...

    An arrangement between the Bank of Canada and dealers whereby ...
  4. Dealer Financing

    Dealer financing refers to loans originated by a retailer that ...
  5. Square Position

    A term used in foreign-exchange trading. The term "square position" ...
  6. Market Price

    The current price at which an asset or service can be bought ...
Related Articles
  1. Trading

    Working In Finance: 5 Forex Careers

    The forex markets can be both exciting and lucrative. Find out what jobs exist in this space and how to get them.
  2. Financial Advisor

    Is Your FX Broker In Compliance?

    Sharon Pendleton, director of compliance, National Futures Association (NFA), discusses some of the new rules that now govern forex brokers or dealers.
  3. Trading

    The Pros & Cons Of A Forex Trading Career

    Trading foreign currencies can be lucrative, but there are many risks. Investopedia explores the pros and cons of forex trading as a career choice.
  4. Trading

    Top 5 Forex Risks Traders Should Consider

    With a long list of risks, losses associated with foreign exchange trading may be greater than initially expected. Here are the top 5 forex risks to avoid.
  5. Trading

    10 Ways To Avoid Losing Money In Forex

    When approached as a business, forex trading can be profitable and rewarding. Find out what you need to do to avoid big losses as a beginner.
  6. Insights

    The National Futures Association As Market Watchdog

    As the overseer of the commodities and futures industry, the NFA helps to protect investors from fraudulent futures activities.
  7. Managing Wealth

    5 Tips For Dealing With Car Dealers

    Negotiating with car salesmen becomes a lot easier if you follow these five easy steps.
  8. Investing

    GM Dealers in India Threaten to Sue Over "Measly" Compensation

    Indian auto dealers are reportedly threatening to sue GM if the company doesn’t offer more to compensate for no longer selling vehicles in the country.
  1. What types of accounts are available for forex trading?

    There are many different types of forex accounts available to the retail forex trader. Demo accounts are offered by forex ... Read Answer >>
  2. Where is the central location of the forex market?

    There is no central location of the foreign exchange market, often referred to as the forex (FX) market. Transactions in ... Read Answer >>
  3. How does the International Chamber of Commerce define the term 'Free on Board' (FOB)?

    Find out more about the International Chamber of Commerce, Incoterms rules and how the International Chamber of Commerce ... Read Answer >>
  4. Is it possible to trade forex options?

    Yes. Options are available for trading in almost every type of investment that trades in a market. Most investors are familiar ... Read Answer >>
Hot Definitions
  1. Entrepreneur

    An Entrepreneur is an individual who founds and runs a small business and assumes all the risk and reward of the venture. ...
  2. Money Market

    The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities ...
  3. Perfect Competition

    Pure or perfect competition is a theoretical market structure in which a number of criteria such as perfect information and ...
  4. Compound Interest

    Compound Interest is interest calculated on the initial principal and also on the accumulated interest of previous periods ...
  5. Income Statement

    A financial statement that measures a company's financial performance over a specific accounting period. Financial performance ...
  6. Leverage Ratio

    A leverage ratio is any one of several financial measurements that look at how much capital comes in the form of debt, or ...
Trading Center