Conspiracy theory isn't an alternative to racist ideology - it very often compliments it. I know some EDLers are that way inclined - for example "Snowy" is now into... the protocols! And there's a an Islamophobic conspiracy theory very similar to the protocols in the "Eurabia" nonsense that the likes of Breivik believe. Just like the Nazi interpretation of the protocols, this one has European national elites in league with "the enemy". Conspiracy theory, by its very nature, leads us to blame individuals - or more often groups of people, identifiable by ethnicity, race, religion or political views (and most often a combination thereof) - for social ills, war, crisis, instability and what have you, rather than structures and institutions, so it's almost as if it was custom designed to engender bigotry - oh, hang on... most of it was.
Find me a single Nazi, a single fascist (and I mean genuine fascists and Nazis) who don't subscribe to some sort of conspiracy theory. In fact even most EDLers now seem to believe that the EU is either working in concert with Islamists or is using them to "attack western judeo christian culture".
Pointing racists in the direction of conspiraloon stuff won't cure their racism - it's more likely in fact to confirm their prejudices.
Unfortunately it's almost impossible to move someone away from this kind of thinking - I've been successful only once, and the friend I managed it with occasionally posts on this board as it happens, though he certainly wasn't ever a racist and he fortunately never got to the stage where he thought the protocols were valid and he never thought that there should be a "debate" on the historical accuracy of the holocaust. The only way you can move people away from racist ideology, or away from conspiratorial nuttiness, is to talk to them about real, verifiable history and to help them find a proper framework through which to look at politics and the world around them - one that explains why we're in the state we are in, why they have such little control over their lives, why they feel so isolated, why those at the top find it so much easier to increase their power while the rest of us see either no improvement in our prospects or worse - without the need for a shadowy group of humanoid lizards to make sense of it.