Forex truth is that average Forex Trader make around 1% up to several 100% of trading account balance. When you convert that into money as a deposit currency that is $1 up to several thousands dollars.
How did I calculate that?
I have decided to give you roughly overview what is the range that average Forex trader make by trading Forex. Is that beginner trader in Forex or experienced trader.
The amount of money depends on the account balance. If you have more money deposited for trading you can make more.
1% of $100 is $1.00
1% of $100,000 is $1,000
This is not to hard to understand that the return depends on the trading balance on your account.
To put the average Forex trader earning into certain range I will divide earnings into time periods. Time period is the period in which average Forex trader calculates his earnings.
Average Forex Trader Salary for Different Time Period
The time period in which average Forex trader calculates his earning can be divided into three periods:
- Average Forex trader return for daily period
- Average Forex trader earning for weekly period
- Average Forex trader salary for monthly period
Each time period can give different income amount and it can give similar income amount.
Different average income can be because trading strategy defines how to select entry signals.
If the signal appears several times during the day, the trader can open several trades. The number of trading signals is never strict and it can vary from one to several. It all depends on the market where each day is different with different number of trading signals.
Similar average income can be because trading signal can appear once per week which means trading signal is same for daily period and for weekly period. If you open the trade and make some money, that income will be same for that day and for that week.
The average Forex trader income can vary depending on the trading signals which are defined by the trading strategy.
If you take a look into more details for the daily period of average Forex trader return you will see how much you can make.
Average Forex Trader Return for Daily Period
I can give you my personal example so you can have average Forex trader return on daily basis.
What I could make as a daily return sometimes have been 100% or even more. My trading account balance was $100 which means I had $100 return.
The amount is not so much but if you look what was the percentage you could imagine what would be if I had $10,000 on my account.
The thing is that I would not trade to catch 100% on $10,000. The reason is that it is to much money on stake where I could lose all $10,000 if something went wrong.
The 100% return is nice to see, but I would not suggest to hunt for that kind of return. Especially on the daily time period.
That is too much and you could easily lose all what you have.
You could lose all what you have because you would use mini lot size, 0.10, which gives you around $1,00 for each pip you trade. Some trading pairs have daily pip range more than 100 pips which can give you $100 loss if you trade them.
The pip value depends on the trading pair you trade.
Daily Return in Percent
The trader that make the return on the daily basis is scalper or daily trader.
For average Forex trader return on the daily basis would be few percent. The 3% up to 5% to 6% per day for day trader and 10% up to 20% for scalper.
If you have $1,000 as a deposit on your trading account the amount you could make would be from $10 up to $100 or $200.
$200 is decent amount of money on the daily basis and you could make more if you have larger trading account.
Why would you not hunt for more than 20% during the day?
It depends on the risk you are willing to take.
If you want to be professional you need to prevent losing all what you have. That is done with proper risk management where you risk 1-2% on each trade.
Average Forex Trader Salary for Weekly Period
I will also give my personal example how much I have made on few trades in a week. It will not be the real example how much average Forex trader earn on the weekly basis.
I have invested $100 on my trading account and I have open BUY order. During few days in a week I have made over $1,000.
I was on $1,300 just in a few days. The way how I have done that is not for every day trading because it is to risky.
When I have open mini lot size order I have waited until it becomes profitable. When it was profitable I have open new one, again mini lot size.
That way I have increased my earning where I have earned a lot just in few days.
The way I have traded is not how profitable average Forex trader trade on the Forex market. My trading was risky and average trader tends to risk less on each trade and wait for better signal.
The average trader waits for the daily trading signal. The signal can come after days of waiting and when it appears the trade give very good earning.
To put that into numbers average Forex trader earns around 10-15% per week if he watch out on the risk.
On the $1,000 account balance you can make $100 – $150 per week. And that is without having losing trades.
If you increase your account balance up to $10,000, the earnings can be $1,500 per week. That is nice side income to your regular job salary.
Average Forex Trader Salary for Monthly Period
If you want to see what is average Forex trader salary I need to show you some other stats.
The Forex trader that works for salary is the professional trader working for company that manages invested money.
Their goal is to make 5-10% per year which on the several hundred million dollar account is decent profit. The trader works for monthly salary and they get bonus at the end of the year if they are profitable.
Take a look on the image below. I have found on the Internet approximate amount for average Forex trader salary.
Average Forex Trader Salary – Info from Glassdoor.com
Not so bad and not so much if you know what you could make by your own trading on the Forex market.
If you decide to trade on the Forex market and make a salary with your own money everything will depend on the trading account balance.
The trading account balance will give certain amount of money. The amount of money will be defined by the risk management.
If the risk management defines profit of 5% on each trade you take, you will make $5,000 on $100,000 account balance.
If you have $1,000 account balance, 5% will give you $50.
More money on the account, more money you can make. You make money with money.
When you summarize all three possible way of how average Forex trader make money you can see it depends on you.
It depends on you which one you would like to have.
If you use daily trading you can make more money than on the weekly basis. But also you can make less.
If you use weekly trading you can make more money than on the monthly basis. But also you can make less money.
It all comes down to how much money you have on your trading account and what percentage you are hunting on each trade.
Large account balance will give you more money on any percentage compared to smaller trading account with same percentage.
For beginners who does not know how and where to start with trading
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