What is the primary goal of regulation in the forex market?

The primary goal of regulation in the forex market is to protect investors from fraud and unfair practices. This focus on safeguarding participants ensures that the market operates fairly and transparently, which is essential for maintaining trust and confidence among all market players. Regulations are established to prevent manipulative practices such as insider trading, misleading information, and unethical behavior that can harm investors' interests. By providing a framework of standards and oversight, regulations help to create a level playing field where all traders can compete fairly and be sure that their rights and capital are secure.

In contrast to the goal of protecting investors, promoting high-frequency trading is more about facilitating a specific trading strategy and does not encompass the broader protective measures intended by regulations. Preventing market monopolies is more relevant in contexts of market competition, but it is not the primary focus within the forex regulation framework. Finally, minimizing the role of technology in trading goes against the current trends in financial markets, where technology often enhances trading efficiency and accessibility, rather than being restricted.