How much does the average forex trader make?

angelnish

Banned
Jul 24, 2012
29
1
0
Hello everyone,

I was just wondering how much the average full-time forex trader makes. You can express this amount either as a percent return on their investment, or a dollar amount. I realize that there is likely swings in their return, but I just mean on average over the course of the year.

What kind of initial deposit is required to successfully trade full-time and make a decent living at it?

Finally, is there a large difference in return between day-traders and swing-traders?

The reason I ask is because I will be done college at the end of this month, and I would really prefer to trade forex full-time rather than get a regular office job if it is at all feasible. I've been trading forex in a demo account for over 2 months now and I've had relatively good results. I started with a $10,000 balance and some days I can be up $1,000 or more... of course I got a margin call and went broke once, but I've learned from my mistakes. I plan on spending at least the summer honing my forex skills, but I was hoping I could make this a viable alternative to the average mind-numbing desk job some day.

Thanks for the input!
 

Enivid

Administrator
Staff member
Nov 30, 2008
16,048
818
144
Odessa
www.earnforex.com
I was just wondering how much the average full-time forex trader makes. You can express this amount either as a percent return on their investment, or a dollar amount. I realize that there is likely swings in their return, but I just mean on average over the course of the year.

There is no average income in Forex - not in absolute amounts, nor in percentage return. It is a high-risk probabilistic activity with a non-normal distribution of income. Some earn 1% per year, others earn 200% per year, but many more are losing.

What kind of initial deposit is required to successfully trade full-time and make a decent living at it?

Depends on your risk tolerance (are you ready to lose it?), your profitability and your understanding of "decent living". I wouldn't even try with anything below $1 million.

Finally, is there a large difference in return between day-traders and swing-traders?

Yes, the same as between two random traders inside those two groups.

The reason I ask is because I will be done college at the end of this month, and I would really prefer to trade forex full-time rather than get a regular office job if it is at all feasible.

I strongly advise you not to do it. Except if you can get yourself hired to some Forex trading company and be able trade there with investors' money.
 
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Easy Trader

Master Trader
Sep 17, 2011
240
4
59
Hello everyone,

I was just wondering how much the average full-time forex trader makes. You can express this amount either as a percent return on their investment, or a dollar amount. I realize that there is likely swings in their return, but I just mean on average over the course of the year.

Before any assumptions could be made, the person trading if mature and serious would need years to understand his/her trading system in all market conditions. To then place a realistic conservative expectation of returns on an annual basis. Most traders (the ones I know) and myself look for 10-30% annually.....

What kind of initial deposit is required to successfully trade full-time and make a decent living at it?

Well if a trader needs to make $50,000 a year after taxes then they need to
produce about $75,000 in profits.

75k @ 30% return annually= $250,000.00 account size, risking 0.5-2% per trade. Now this is a pretty close profile of a real independent full time trader only, truth is there are very few of them, don't confuse them with trading brokerage or firm employees or an entrepreneur who may own multiple businesses and also trade from his/her office.

Finally, is there a large difference in return between day-traders and swing-traders?

Not enough solid info out there to really tell. I think most day-traders work for trading houses or firms wether at home,office,or exchange floor. The more you trade the more volitile your returns become good or bad, 1-5 trades a month with a proven system will yeild slow reliable growth. It no longer is a question of if the trader will be wealthy but when.

The reason I ask is because I will be done college at the end of this month, and I would really prefer to trade forex full-time rather than get a regular office job if it is at all feasible. I've been trading forex in a demo account for over 2 months now and I've had relatively good results. I started with a $10,000 balance and some days I can be up $1,000 or more... of course I got a margin call and went broke once, but I've learned from my mistakes. I plan on spending at least the summer honing my forex skills, but I was hoping I could make this a viable alternative to the average mind-numbing desk job some day.

Thanks for the input!

Well your young and be greatful that you have the insight and desire to not fit into the box as the rest of your peers. I would suggest that you stay humble and take the desk job, be greatful that your not outside in the heat with a shovel! Keep trading, profect your craft. Where your at now is not where you are going to be! Try to put a MT4 on your PC at work, even if you don't trade there, keep your focus on it when you can. I have learnd more by blindly staring at a chart and day dreaming than intensly focusing on figuring it out. Watch these movies right now and keep researching this until you die! This material has transformed my life in the most unbelievable ways imaginable through the past 8yrs and will work for anyone who lives by it. This stuff is no bullshit!;)

http://youtu.be/b6s4QbtIiQU

http://youtu.be/KprVbrzT_Ls

This is 1of11 you will have to find the other 10



I also utilize something lately called 'faster EFT', research it. Its all may seem silly I know, but for me anything is worth success in life:D
 

Fxpipper

Master Trader
Oct 26, 2011
1,132
3
49
No figures exist which can be utilized to map a median income for a currency trader, so cannot really provide the magic number at the moment. And would advise you to get a regular job after college and trade part time to gain the experience and exposure.
Once you have got the hang of things..then, move into currency trade full time.
 
Apr 17, 2012
59
0
0
How much do people make in FX ? Hmmmm....I think it
depends on how big your account is....the bigger the
account, the better chances of profit....

Also its subjective, some traders are happy with
USD$2K per month, others think its too little....

For my case, I make good profits and its better,,,,,,,,,,,,,,,,,,,,,,,
 

Davidee

Active Trader
Nov 6, 2010
4
0
32
Scotland
www.myforexdot.org.uk
Hello everyone,

I was just wondering how much the average full-time forex trader makes. You can express this amount either as a percent return on their investment, or a dollar amount. I realize that there is likely swings in their return, but I just mean on average over the course of the year.

What kind of initial deposit is required to successfully trade full-time and make a decent living at it?

Finally, is there a large difference in return between day-traders and swing-traders?

The reason I ask is because I will be done college at the end of this month, and I would really prefer to trade forex full-time rather than get a regular office job if it is at all feasible. I've been trading forex in a demo account for over 2 months now and I've had relatively good results. I started with a $10,000 balance and some days I can be up $1,000 or more... of course I got a margin call and went broke once, but I've learned from my mistakes. I plan on spending at least the summer honing my forex skills, but I was hoping I could make this a viable alternative to the average mind-numbing desk job some day.

Thanks for the input!


How much does the average Forex trader earn? Nothing, I think the average Forex trader probably loses their entire trading account to be honest with you.
 

PaladinFX

Active Trader
Nov 21, 2012
76
0
27
Germany
www.paladin-consultants.com
How much does the average Forex trader earn? Nothing, I think the average Forex trader probably loses their entire trading account

Yep, the majority of non-professional traders don't generate regular profits but rather handle dwindling accounts.
There is the (in)famous figure of 95% of retail traders losing money circulating around the interweb ... nobody seems to know on what data that figure is based, but personally, I believe it to be fairly accurate.

There are two reasons for this overwhelming majority, in my opinion:
1. Many new 'traders' (and I use that term with a shake of the head) don't even bother learning the basics, but spend time and money looking for automated 'Get-rich-quickly Schemes', i.e. EAs which promise five-figure monthly incomes without any effort.
2. Those who approach forex trading seriously and learn about market conditions, analysis methods, and money management often don't have the financial means necessary to open an account which will grant them even a modest monthly income. Hence they start forgetting about the 2%-Rule and other essentials, overtrade ... and blow their accounts.

It is well and good to start trading with a very small account, even trading nano lots, for a beginner; but one cannot expect to make a living from forex trading with an account balance of a thousand bucks ... or ten thousand, for that matter.

So instead of being patient and letting compounding work for them for a few years, they want it all, and want it NOW ... that simply won't fly.

I agree with what Enivid said in one of the first posts in this thread: Don't even dream of quitting your day job with anything less than a million bucks to your name.
This doesn't mean funding a trading account with a mill.
It means having sufficient funds, invested smartly in various fields, and being able to furnish a trading account with something in the region of 200k.
An experienced trader can average a monthly return of 5-10% (depending on various conditions), which will generate 10-20k per month ... you won't get rich with that, but it surely affords a comfortable lifestyle, adding revenue from your other investments.
It also ensures that you have a buffer for those months in which you manage to break even only, or even suffer a drawdown ... and those months will surely come, no matter how good a trader you are.


Cheers,
P.
 

Kungfupanda

Banned
Oct 8, 2012
160
0
12
Through one experienced trader, I know 15-20% per month is very good. Since professional trader could spend hundred thousands or millions $ per trade, so each month if they can earn 15-20%. is pefect.

And to low capital traders (hundreds or thousands), one month they can earn a lot compare their capital, maybe it is 200-300$.
 

Fxpipper

Master Trader
Oct 26, 2011
1,132
3
49
Heck, if a trader can trade positively at 10% and above, every month - that falls under the "great" tab..the prob is in being able to maintain that rate every month. And for the record, if you have a million $, it might be time to think "hedge funds" rather than trade it yourself..just a suggestion!
 

PaladinFX

Active Trader
Nov 21, 2012
76
0
27
Germany
www.paladin-consultants.com
Heck, if a trader can trade positively at 10% and above, every month - that falls under the "great" tab..the prob is in being able to maintain that rate every month. And for the record, if you have a million $, it might be time to think "hedge funds" rather than trade it yourself..just a suggestion!


You mean investment opportunities like those run by Lehman Bros? :D

It makes sense to diversify one's investments, but nowadays one has to be really careful, as even 'biggies' go bust regularly.

In addition, it'll be close to impossible to find something with a 5-10% monthly yield which isn't a ponzi scheme of one or the other type.

The only investment field offering yields of that magnitude is forex.
And I'd rather do that myself instead of giving over the forex portion of my portfolio to a stranger whose performance I cannot judge properly.


Cheers,
P.
 

Fxpipper

Master Trader
Oct 26, 2011
1,132
3
49
Ah Lehman brothers..now that's just like a broker scamming you and running away with your million and you end up in the same situation.
There are quite a few hedge funds and investment opportunities that are better regulated than some of the top brokerages, including the fact that a % of your funds are insured..
either way, good luck and let us know how it works out..
 

PaladinFX

Active Trader
Nov 21, 2012
76
0
27
Germany
www.paladin-consultants.com
Yeah, the Lehman Bros story was a sad thing for everybody involved.

Some weeks ago CNN reported that several of LB's victims have at least been partially reimbursed, so there's hope for the rest of them to save at least some of the funds destroyed.


Cheers,
P.
 

Rob Taylor

Active Trader
Oct 14, 2012
131
2
37
UK
www.tradeforexmakemoney.co.uk
Profit is all relative. Smaller accounts make less profit, larger accounts make more profit. I try to measure success in pips rather than in dollars.

I currently trade 4 pairs and i set myself a weekly target of 100 pips profit.

My last 4 weeks have been 269, 513, 157, 315.
 

PaladinFX

Active Trader
Nov 21, 2012
76
0
27
Germany
www.paladin-consultants.com
Profit is all relative. Smaller accounts make less profit, larger accounts make more profit. I try to measure success in pips rather than in dollars.

Yeah, that's the only way to go about it ... but try telling that to some people.

Read this thread from post #25 onwards, and despair, lol.


Cheers,
P.
 

Maria08

Banned
Oct 23, 2012
49
0
0
If I told you, would it make any difference in YOUR trading? Would it make you more disciplined or would you go for the fences? Would you finally do the things pro's do to get where they are?

I'm not trying to dis anyone or be a smart-ass, but asking the question says more about you than any dollar amount I tell you I make. I know everybody would love to have figures, but they are meaningless to everyone but me.

I simply don't care about money when I trade. I trade the trade. I know what I can handle before I push the buttons, so money doesn't become the issue. If every pro had to trade with actual cash, trading wouldn't have 1% of the volume it has.
 

hayseed

Master Trader
Jul 27, 2010
555
157
109
usa
pips

Profit is all relative. Smaller accounts make less profit, larger accounts make more profit. I try to measure success in pips rather than in dollars.

I currently trade 4 pairs and i set myself a weekly target of 100 pips profit.

My last 4 weeks have been 269, 513, 157, 315.

//----

hey rob...... is that 100 pips irreguardless of lot size...... or something like 100 pips per one full, standard or mini, lot traded.....h
 

PaladinFX

Active Trader
Nov 21, 2012
76
0
27
Germany
www.paladin-consultants.com
hehe, I don't understand why so many people want to relate pips gained with profit in money, or position size, or whatever ... those things cannot relate, and are irrelevant in any case.

100 pips gained a week translates to a healthy yield, no matter the position size. :)
My estimate would be 2-3% a week for that gain, i.e. 8-12% per month.

It doesn't matter if it's 10% of a mini account with a few thousand bucks in it, or 10% of half a million.
The growth rate is the crucial variable here.

Maintain 10% growth over a period of ten years and you'll be wealthy, even if you started out with a thousand bucks only.


Cheers,
P.