Retail Foreign Exchange Dealer (RFED) Registration
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 and the transaction is either:
- 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.
Registration is required for RFEDs unless the individual or organization is exempt from registration as an RFED pursuant to Sections 2(c)(2)(B) or 2(c)(2)(C) of the Commodity Exchange Act.
All registered RFEDs must be NFA Members. Their firms also need to be designated as Forex Dealer Members (FDM) and must comply with requirements outlined on the FDM page.
Registration Requirements for RFEDs
To register and become an NFA Member:
- Designate a Security Manager in order to obtain secure access to NFA's Online Registration System (ORS)
- Complete online Form 7-R (which includes NFA membership sections)
- Complete online NFA membership application
- Satisfy compliance requirements for RFED applicants
- Complete online Member Questionnaire
- Pay a non-refundable application fee of $500
- Pay non-refundable RFED membership dues
Registration Requirements for Principals and Associated Persons (AP) of RFEDs
An RFED is required to file the following for its principals, APs and Forex APs:
- Complete online Form 8-R
- Submit fingerprint cards
- Satisfy proficiency requirements for each sole proprietor, AP and forex AP
- Pay non-refundable application fee of $85.00 for each principal and AP
An application fee for principals and APs is not required if the individual is currently registered with the CFTC in any capacity or is listed as a principal of a current CFTC registrant. Only one application fee is required if the individual is filing an application as both an AP and Principal. One principal must be a forex AP.