DislikedThis might be a stupid question, but if they are the counter party wouldn't they have a dealing desk to manage the risk? Also, I just reviewed TD, Gain, and Oanda. TD is only listed as an FDM (Forex Dealer Merchants) whereas Gain and Oanda are listed as RFEDs (Retail Foreign Exchange Dealers). Does anyone know the difference between these?Ignored
The Commodity Futures Trading Commission (CFTC) has issued final forex rules which become effective on October 18, 2010. Any firm acting as a counterparty to certain retail off-exchange forex transactions is required to register as a Retail Foreign Exchange Dealer (RFED). (Futures Commission Merchants offering forex transactions to its retail customers but acting primarily or substantially as a traditional FCM are exempt from registering as an RFED but must be approved as a Forex Firm and designated as a Forex Dealer Member of NFA.)