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Are there safeguards to protect retail forex traders against forex dealers' conflicts of interest?

Personal Finance & Money Asked on August 3, 2021

I have noticed that firms catering to retail forex trading are essentially dealers with a captive audience: their clients. These forex dealers get to set any price they want because they are the only dealer available to their clients. When retail traders want to sell at a high price, the forex dealer wants to buy from them at a low price. When retail traders want to buy at a low price, the forex dealer wants to sell to them at a high price. Retail traders rely on forex dealers to get the best price, but the best price for the forex trader is a bad price for the forex dealer.

I am not familiar with the forex market, but it seems that the situation looks grim for the forex trader. They are always trading against a single dealer who gets to control the price, who gets to see all limit orders and stop orders, and who benefits when their clients do not get the best price. This looks terribly rigged. Am I correct in my grim assessment of the retail forex trading? Are there safeguards similar to those of the stock market to protect the retail forex trader?

(If answers are country-specific, please answer about the US.)

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