Retail Forex vs. Large Banks?

I'm a little bit confused about how the rates are calculated. I understand that it's a little bit like the stock market, in that there are always buyers and sellers at a certain price. Retail forex has rates. Banks has rates. Do the banks get their rates from retail forex, or does retail forex average bank rates to calculate their rates. Do the banks move the market, or do forex traders move the market, if both, which one has a greater influence? I'm also a little bit confused how banks set their rates, (since each bank may have different rates) do they each look at each others rates, do they look at charts, do they share software to calculate rates. I may not have asked the right questions exactly, but if anyone has some insight to all of this, thanks.

Retail traders are just a speck of sand...Banks use software such FXAll...etc or they have hundreds of dealing desk traders on the phone each day .....What do you think all those traders are doing in the currency room?

by the way there is no primary feed or interbank market...If Citi needs several million USD they pick up the phone and can deal that way with another banks dealing desk...

Retail Forex is a farse...

ES

P.S. ohhh..by the way...when you graduate to Currenex or the other so-called ECN's...do you think your rubbing elbows with Citi...Merrill or the likes...HA! Your still in a retail pool and considered a piker...Yes its true....your just in a marked up subset...

Ya I hear there is a price difference between banks and retail brokers. Looks like everyone is making money along the way