Back to Glossary
General TradingR
Retail Foreign Exchange Dealer (RFED)
A regulated entity that acts as a counterparty to off-exchange forex transactions with retail customers. RFEDs are required to register with regulatory bodies such as the CFTC and NFA in the United States.
Example
“A U.S.-based forex broker registered as an RFED with the NFA is required to maintain at least $20 million in adjusted net capital and provide transparent pricing to its retail clients.”