Futures Commission Merchants (FCMs) and Retail Foreign Exchange Dealers (RFEDs)

Info below blue text was copied from the NFA web site:


If your trade broker/platform/agent is a RFED it means their primary business is conducted OFF-EXCHANGE and they are acting as the COUNTERPARTY.

If they say they aren’t their own counterparty- ask them who is- a new trend is to try hide by being the counter party among the different companies- FXCM acts as counterparty for CAPITAL GAIN. Capital Gain acts as the counterparty for  another group. It doesn’t change what this is.

IT’S AN ONLINE GAME AND YOUR PLAYING AGAINST THE PEOPLE WHO WROTE THE GAME. THEY CONTROL everything! They decide when you win and how much you win- and when to take it all away. If you try outsmart them by closing your account while your ahead- you never get your money out. They ignore you.



A Futures Commission Merchant (FCM) is an entity that solicits or accepts orders to buy or sell futures contracts, options on futures or retail off-exchange forex contracts* and accepts money or other assets from customers to support such orders.

A Retail Foreign Exchange Dealer (RFED) is an entity that acts, or offers to act, as a counterparty to an off-exchange foreign currency transaction with a person who is not an eligible contract participant:

  • a futures contract, an option on a futures contract or an option contract (except options traded on a securities exchange); or
  • offered or entered into, on a leveraged or margined basis, or financed by the offeror, counterparty or person acting in concert with the offeror or counterparty on a similar basis.

FCMs and RFEDs are required to maintain accounting systems that are similar to those of any other business. Records must be prepared following generally accepted accounting principles.  FCMs and RFEDs must maintain a minimum net capital requirement and adhere to daily and monthly financial reporting requirements.  More…

All FCMs and RFEDs are required to have an anti-money laundering (AML) compliance program in place pursuant to the International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001 (Title III), which was signed into law on October 26, 2001.  NFA rules outline the content and scope of this program and NFA has developed numerous resources to assist Members in meeting this regulatory responsibility.  More…

FCMs that offer retail off-exchange foreign currency (forex) products and RFEDs, have specific registration, recordkeeping, reporting, financial and compliance requirements designed to address the issues unique to this off-exchange environment.  More…

*FCMs that are not primarily and substantially engaged in on-exchange futures business activities must be registered as RFEDs to act as the counterparty to a retail off-exchange forex transaction.


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