Hi

 I have been doing some reading but am afraid I still don't really understand the way the foreign exchange market works.  Can someone please clarify for me?

 What I think I understand is that:

There is no central exchange.  So, trading goes on in lots of different ways.  The way that the private trader gets involved is by going through a broker.  Now, I am not sure how price actually gets set without an exchange.  It would be great if someone could answer that. 

So, when we go through a broker, unlike with equities, our order is not getting placed on the market.  This is where I get really hazy.  Who is buying or selling the corresponding trade to ours? 

 Now, with the spread, one would think that this is however many pips each side of the price.  However, from my reading, it seems that the brokers are generally market makers and are profiting from our choices. 

I don't even really know how to ask the question but I hope someone can help explain.  The real thing I want, beside understanding is to know what to look for in a broker.