Many traders — especially those who experience early losses — come to believe that forex is rigged. It is easy to understand why: sharp price reversals, stop-loss hunts, and unexpected volatility can feel unfair. However, while there are instances of bad actors and manipulation in the financial world, the forex market itself is not “rigged” against retail traders. It is a decentralised, global market where massive institutions, governments, and individuals all participate — and the behaviour of prices reflects that complexity.

Let’s explore the truth behind claims of rigging in forex, why markets move the way they do, and how to protect yourself against unfair practices.

Understanding the Forex Market Structure

Forex is a decentralised market made up of:

• Major banks: Including JP Morgan, Citibank, Deutsche Bank, and HSBC, which handle huge currency flows.
• Central banks: Governments intervene for monetary policy reasons.
• Corporations: Multinational companies exchange currencies for business operations.
• Hedge funds and institutions: Trading currencies for investment purposes.
• Retail traders: Individuals trading through brokers.

No single participant — not even a major bank or central bank — can permanently control the forex market due to its massive daily turnover of around $7 trillion.

Why Some Traders Think Forex is Rigged

Several factors create the perception that forex is rigged:

• Market manipulation scandals: There have been real cases (such as the 2013 forex rigging scandal) where some major banks manipulated currency benchmarks.
• Broker malpractice: Unregulated or shady brokers may engage in practices like slippage, spread widening, or stop hunting.
• Emotional trading: Many traders blame external forces for losses that result from poor risk management or unrealistic expectations.
• Unexpected volatility: News events, flash crashes, and liquidity gaps can cause surprising moves that feel manipulative.

While manipulation exists in isolated cases, it is not a daily, market-wide conspiracy against traders.

The Reality: Forex is Competitive, Not Rigged

In most cases:

• Price movements are natural: Driven by news, macroeconomic factors, market sentiment, and institutional flows.
• Liquidity dynamics cause sharp moves: When large orders hit thin liquidity, price spikes or stop runs happen naturally, not because the market is rigged.
• Retail traders are a small part: Institutional traders dominate the forex landscape, but they are competing with each other, not conspiring against individuals.

Trading losses often come from misjudging volatility, leverage misuse, or lack of preparation — not from systematic rigging.

How to Protect Yourself from Unfair Practices

You can protect yourself and trade safely by:

• Using regulated brokers: Choose brokers licensed by authorities like the FCA (UK), ASIC (Australia), or CySEC (Europe).
• Avoiding offshore, unregulated brokers: These often operate without oversight and may not honour withdrawals or fair pricing.
• Practising disciplined risk management: Always use appropriate position sizing and stop-losses.
• Understanding market behaviour: Learning how liquidity, order flow, and news impact prices helps you anticipate and adapt.

By making smart choices, you drastically reduce the chances of falling victim to unfair practices.

Conclusion: Forex is Not Rigged Against You

In conclusion, the forex market is not rigged against retail traders. While manipulation by bad actors has occurred in isolated instances, the forex market overall is a highly competitive, decentralised arena where success depends on skill, preparation, and discipline. Traders who understand the true nature of forex, choose reputable brokers, and focus on continuous improvement give themselves the best chance to succeed without falling into the trap of blaming the market itself.

If you want to learn how to trade forex safely, smartly, and professionally, explore our Trading Courses and start building real trading confidence with the right knowledge.