Forex Market Structure

Permit me to use the stock market to clearly elaborate my point on forex market structure. In the stock market, everyone (buyers and sellers) must go through a centralized exchange such as the New York Stock Exchange (NYSE) to buy or sell stocks.
You have no choice other than to execute your trade through them. They could even ignore your feed and put it when they deem necessary. You had to make some calling and writing before you have your trade filled.
Take a look at the diagrammatic structure of the stock market.

The stockmarket is very monopolistic. There is only one body (Specialist) that controls prices. If you don’t go through this body, you have no trade at all. This gives the master of the market the right to manipulate entries to his own benefit.
Let us explain a little, so that you can have great understanding of what we are trying to portray.
In the stock market, you have to force the specialist fulfill order of its clients.
Ok, let’s assume that the number of sellers eventually exceed the number of buyers. Every client want to sell, and buyers are not ready to take the offer. The specialist now has handful of stock that no one is ready to buy.
What do you think will happen?
                                         

 Simple! 
If you are in his shoes, you must device a means to profit therein.
In order to prevent more sellers from entering the market, the specialist will simply widen the spread or increase the transaction cost. This means that the specialists can manipulate the quotes it is offering to accommodate its needs.
What about the Forex Market?

Forex is Decentralized

In the forex market, you don't need to go through a centralized exchange with just one price. There is no single price (fixed price) for a given currency at any time. This simply means that quotes are not the same from dealers, as you have lots of them to make your choice from. Let’s take a look at the diagram below to envision how the structure of the currency market could appear to be;

The lack of control over price in the market makes it so great and awesome. The market is so huge and competitive and dealers are always ready to give you the best deal almost every single time. Some offer you the lowest spread while others could even give 20%– 50 % of initial deposit as bonus.

Mind you, such bonuses could cause you great headache during withdrawal of your profit. Some of the dealers would want you to trade certain volume of contract before you can carry out any withdrawal. Therefore, do diligent research before choosing your dealer and avoid too much sugar in your tea. Sweet things at times are unfavorable to health.

I do not want to see long posts in Forums, slamming dealers.

Again, one interesting thing about forex is that you can trade from anywhere, as long as you have internet access.