Quote Originally Posted by ;
This may be a stupid question, but if they're the counter party would not they have a dealing desk to handle the risk? Also, I reviewed TD, Gain, and Oanda. TD is only recorded as an FDM (Forex Dealer Merchants) whereas Gain and Oanda are recorded as RFEDs (Retail Foreign Exchange Dealers). Does anyone know the difference between those?
Out Of NFA.futures.org:
The Commodity Futures Trading Commission (CFTC) has issued final FX principles that become effective on October 18, 2010. Any firm acting as a counterparty to certain retail off-exchange FX transactions is required to register as a Retail Foreign Exchange Trader (RFED). (Futures Commission Merchants offering FX transactions to its retail customers however acting primarily or substantially as a traditional FCM are exempt from registering as an RFED but have to be approved as a Forex Company and designated as a Forex Dealer Member of NFA.)