Dealer – What is a Dealer in forex ?

What is a Dealer?

Definition of Dealer: Dealer can be a firm or an individual who acts as a main or intermediary to a product, stock or money transaction. The principals occupy one side of the position, with a hope to bring in spread by shutting the post in a succeeding trade with the other party. On the contrary, a broker is regarded as a person or a firm that plays the role of an intermediary in which they put the buyers and sellers together on the basis of a commission or fee. A Dealer in the Forex trading market is regarded as a financial institution having an authorization from a pertinent regulatory body to play the role of a dealer trades foreign currencies. Trading with the authorized Forex dealers makes sure that the transactions are performed in a legal manner. The Futures Association is a regulatory body which is responsible for authorizing the Forex dealers. It makes sure that the authorized dealers are prone to stringent screening ahead of registration and enforcement of regulations on approval.