How about this:
- Trading JPY futures on the CME (symbol is 6J)
- Trading GBP futures on the CME (symbol is 6B)
There is only one tick spread on the CME! And the commission is only $5.80 total. And if you go in on a limit, instead of a market order, you can even avoid the 1-tick spread. I trade Currency Futures every day, and without the spread, so it costs me only $5.80 per trade with my broker.
This lack of spread facilitates scalping for 1-3 ticks, even on the 1 minute chart, which is exactly what I do.
And if you want some wild action, then trade a 6J/6B spread, which would be very similar to trading Spot Forex GBP/JPY. I personally haven't got that much courage, but I will muster it up some day.
Here's another thing: with Futures brokers and the CME, you don't have to worry about the whole "bucket-shop" rip-off thing, as each currency is centrally quoted from an exchange. Slippage is non-existent with limit orders, by the way.
I started trading the currency futures late last year, and have never looked back.
...and don't forget, you don't have to worry about interest rates and carry trades, as these are built into the price of the future contract.
Unfortunately, you need tens of thousands of dollars to trade futures effectively without big drawdowns because you risked too much.
There's also ECN Forex brokers (of which I can count on one hand)... you can tell them apart because they actually charge a commission instead of fixing the spread.
