You've Been Trading the Forex

"Forex traders” who “trade” the Forex through a dealing desk broker have no more access to the market than travelers who use the currency exchange counter at the airport to convert their country's currency to the currency of the country they are visiting or vice versa.

The currency dealer manning an exchange counter displays a set of exchange rates for various currency pairs to complement the undisclosed spreads he intends to take as profit. The Forex dealing desk broker operates in much the same manner when he trades his clients' orders against his own in-house, off-exchange account. Like the transactions between traveler and currency dealer, transactions between the dealing desk broker and his clients never make it to the interbank "trading floor" and the pricing offered is just as biased.

Now I doubt seriously if anyone using the services of a currency exchange dealer would characterize himself as a Forex trader. Afterall, he has the sense to recognize that he isn't trading the Forex, he's only trading currencies with a person standing behind a counter.

To my way of thinking, it's equally ludicrous for an individual to characterize himself as a Forex trader when in fact his orders never leave the hard drive in the computer sitting in the dealing desk broker's office. The only real difference between the two is that in the first instance you're dealing with a human being, in the second a computer. Of course, there's an even more important distinction - travelers haven't bought into an illusion.

If you want to trade the Forex, you really only have two options: become a Futures Ccmmission Merchant (FCM) or start trading with a registered FCM that processes all of its clients trades through a non-dealing desk.
Link : http://nondealingdesk.blogspot.com/2007/01/think-youve-been-trading-forex-think.html