The question of how much money you can make currency trading is a big one that is asked online quite often, so much so that I decided to write an entire 2,000+ word article on it.
See, while this question is incredibly broad, the money you can make from trading forex can be estimated depending on how much money you have, the leverage you’re using, etc.
So, how much money can you make from forex trading?
You can make anywhere from hundreds to thousands of dollars a day trading forex; the bigger your bankroll and equity, the more you can invest therefore the more profits you can reach. While there are plenty of forex traders who do very well, the reality is that most forex traders lose money.
The answer to ‘How much money can you make from forex trading’ is unlimited amounts of money, although perhaps the better question is ‘How much money will you make from trading forex?’
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So, How Much Money Can You Make With Forex Trading?
There is no way to predict exactly how much you should make each day in forex trading. The key is to set earning goals that are realistic for your economic situation, how much time you have to invest, your skillset, etc.
Obviously, the better you get at trading forex, the more money you will make. This statement does not come without a warning; as mentioned previously (and many times on this site), most forex traders fail.
The answer to ‘how much money can you make from forex trading’ is unlimited.
Yes, most forex traders come out with negative results.
That said, there’s no reason to get scared if you are willing to put the time and effort into learning how to trade forex.
With the right resources and practice, it is entirely possible to make a full-time living solely off of forex trading (and you don’t have to be rich, either!)
People are drawn to forex for reasons such as:
- Forex requires a lot less starting capital than stock trading (or other investing)
- You can trade forex 24 hours a day, 5 days a week
- Forex is extremely volatile, which means you have the potential to make a much greater return on your investments (compared to other financial investing)
- There are a large variety of strategies and methods you can utilize to trade forex, and you will likely find one that works for you
For these reasons and more, forex is seen as an attractive option to make some money online – however, because forex is so volatile and there is an opportunity to make so much money, you can also lose substantial sums of cash.
As long as you have a realistic view of the dangers of forex trading, you can focus on avoiding these risks and achieving the success that so many others have found with currency trading.
This post will answer the following questions:
- How Much Do Forex Traders Make?
- How Much Do Forex Traders Make a Day?
- How Much Do Professional Forex Traders Make?
- How Much Do Professional Forex Traders Make A Day?
- How Much Money Can You Make Trading Forex?
- How Much Money Do I Need To Start Forex Trading?
This article is intended to provide a practical depiction of how much the average forex trader can expect to make, and also how much professional forex traders usually make.
Also, I hope this post can put to rest some of the fantasies you may have about forex trading, thanks to the faux-marketing and forex scams out there. Unfortunately, a 20% return is not doable every single month – any system or ‘forex robot’ claiming otherwise is lying to you.
Use these answers as inspiration and goals to work towards – with the right amount of hard work and dedication, anyone can reach these levels of success.
How Much Do Forex Traders Make?
The average forex trader can expect to make no more than 5% of your account size back every month.
So, if you happened to have a great month and you gain 5%, that means:
- If you trade with $10,000, you made $500.
- If you trade with $5,000, you made $250.
- If you trade with $1,000, you made $50.
Seem discouraging?
Not to worry – many great forex traders grow their bankroll over time and eventually get to a point where they have an account with hundreds of thousands of dollars.
For example:
- Bill Lipschutz, one of the top forex traders out today, started trading with $12,000
- Ed Seykota started trading with $5,000
- Randy McKay started trading with just $2,000!
Becoming a successful trader is a process, not an overnight occurrence; if you aren’t coming into the forex game with heaps of money, it will take some time before you are one of the big dogs.
Obviously, how much money you can earn in forex trading varies greatly, and the amount of money you do make will change every single month – you might have a fantastic month, turning profits of 30%, just to lose 40% your next month.
This is where strategy and proper risk management comes in – although leverage in forex is great, you do have to proceed with caution if you hope to stay in the game for the long run.
Keep your risk low (especially when starting, don’t risk more than 1% of your capital ever), and make trades that have great risk/reward ratios!
How Much Do Forex Traders Make A Day?
If the average forex trader makes about 1% to 5% a month trading, then following this logic, this works out to returns of 0% to 0.15% a day.
The question of ‘how much do forex traders make a day’ is especially broad – while everyone likes to come out profitable every single day, this is just not how it works.
The goal is to be profitable overall, which means at the end of the month (or any span of time) you want to be up.
If you are trading long-term, you will have some bad days.
All you can do is keep going and trading according to strategy, aiming to be profitable over the long-term.
There is no set amount of how much forex traders will make in a day, although it’s not uncommon for certain traders to have daily goals they try to hit.
Now that you are familiar with how much money forex traders make and how much money forex traders make in a day, let’s take a look at how much money professional forex traders make.
How Much Do Professional Forex Traders Make?
Professional forex traders can make a 5-10% return on their capital monthly – the catch is that their accounts are usually huge, well over a million dollars, so that a 10% return can mean hundreds of thousands of dollars every single month.
This is huge!
Obviously, as with all forex trading, the returns will vary widely – even professional forex traders have off months, and then spectacular months where they make up to 50% of their capital back!
Use these big returns as motivation to keep growing your forex trading account.Use these big returns as motivation to keep growing your forex trading account.
How Much Do Professional Forex Traders Make A Day?
While we all wish we could have as successful a day trading forex as George Soros once did, this is unlikely to ever occur.
That said, there are some professional forex traders who are making heaps of money every single day (think more returns in a day then you have in your entire account!)
Speaking conservatively, a professional forex trader can expect to make anywhere from 0% to 1% of their capital.
1% of $100,000 is $1,000.
1% of $1,000,000 is $10,000.
1% of $10,000,000 is $100,000.
Obviously, these are just hypotheticals – but there are certainly some forex pro’s out there making this kind of money.
Again, use this as motivation to keep moving forward! Everyone has to start somewhere.
How Much Money Can You Make Trading Forex?
I hope this post gave you an idea of how much both the average and professional forex trader might make – it’s worth mentioning again that these numbers vary greatly, and I’m sure there will be some people who read this post will disagree strongly (feel free to leave a comment)!
Every forex trader uses a different forex strategy and has different approaches to trading; because of this, questions such as ‘How much money can you make off forex trading?’ are hard to provide a concrete answer for.
If there was one specific strategy for forex trading that worked, every single trader would be successful – obviously, this is not the case.
In order to reach the levels of success that many average and professional forex traders have obtained, you need to create realistic goals and have legitimate grasps of risk/reward ratio, risk management, money management, stop loss, etc.
Risk management is arguably the most important part of forex trading – this is how you stay in the forex game for years to come.
If a forex trader is making crazy 20% returns, that means they are probably risking much more of their capital then they should.
Remember, the key is long-term growth and success.
Utilizing proper risk management is how you stay afloat for years to come and is how you can live off of trading forex full-time!
How Much Money Do I Need To Start Forex Trading?
How much money do you need to trade forex? It depends.
As I mentioned earlier, some of the most well-known forex traders today started with accounts of just a few thousand dollars.
This puts to rest the idea that you need to already be rich in order to make big enough returns on currency trading – this is simply untrue.
Not only myself but many of my friends and colleagues started trading part-time with just a few thousand dollars and grew it to accounts of hundreds of thousands of dollars.
So, how much money do you need to trade forex? As much as you have.
If you only have $500, fine – go for it. You certainly won’t make enough to go full-time, but over time you can grow it into something substantial.
That said, I do recommend having at least a couple grand – $2,000 – which I think is the sweet spot for starting trading. While this isn’t enough to quit your day job and trade the forex markets full time, this is enough to get you started and has been proven to be enough to grow into a big-time successful account.
Just make sure that however much money you’re investing in currency trading, you can afford to lose it.
If you do want a chance to make returns on your investment and not lose your money, you must take the time to learn how to properly trade forex and make profitable trades.
Learn to Trade Forex
Figuring out the best strategy for you is the key to trading forex successfully – if you don’t know any strategies or simply want to learn how to trade forex, definitely make sure to properly educate yourself before investing any real money into the markets.
For those who want a program that will teach you everything you need to know to get started in forex and more, go read our post on a mentorship program that is both valuable and affordable.
Also, if you haven’t already, make sure to grab our Free Forex Trading Fortunes PDF – enter your details below to get your copy sent straight to your email today!
[convertkit form=1499651]How Much Money Can You Make From Forex Trading?
You can really make an unlimited amount of money from forex trading, although typically, anywhere from 1% to 10% returns on capital are expected, per month.
How Much Do Forex Traders Make?
The average forex trader will usually make no more than 5% returns on their capital, per month.
How Much Do Forex Traders Make A Day?
The average forex trader will usually make anywhere from 0% to 0.15% returns, per day – the number varies.
How Much Do Professional Forex Traders Make?
Professional forex traders usually aim for 5% to 10% returns on their capital, per month.
How Much Do Professional Forex Traders Make A Day?
Professional forex traders make up to 1% a day returns, give or take. The number varies.
How Much Money Do I Need To Start Forex Trading?
The number varies; you can start with $100 or $1,000,000 – the more money you have, the more profit you can make.
I’m a full-time forex trader, happily making money from the comfort of my own home.
I help others find financial freedom and success with forex trading.