Any type of financial institution that has received authorization from a relevant regulatory body to act as a dealer involved with the trading of foreign currencies. Dealing with authorized forex dealers ensure that the transactions are being executed in a legal and just way.
As per section 2 of Foreign Exchange Regulation act
1947, Authorized Dealer means a person, for the time being authorized to deal in Foreign Exchange. In other words Authorized
Dealer means a Bank, authorized by Central Bank to deal in foreign
exchange. There are some persons or firms, authorized by Central Bank to deal in
foreign exchange with limited scope,
are called Authorized Money Changers.
[Foreign exchange
dealers can also be defined as any financial body or institution
that has been given authorization from the Forex regulatory body to act as foreign currency exchange dealer,
dealing
with
the trade of
foreign currencies. Each
country will have its own Forex regulatory body to ensure that all Forex trading are above board and
just.]