Forex trading grows more and more popular with each passing year, and many people with no serious experience in finances enter the market in hopes of making significant profits. While that is possible, it takes much time and determination to become a truly successful trader, so you should definitely weigh these efforts versus your potential profits. But how much can you possibly make on the Forex market? In this article, Traders Union experts explain what you can expect to earn in the long term.
What affects your Forex profits
There is no single way to maximize your profits in Forex trading: each trader uses a complex variation of instruments, strategies, and assets to make the most of market opportunities. That means there are several crucial aspects that can define how much you’re going to make. First of all, your deposit is the most important thing: the more you invest, the more you can earn, but you also risk much more with a large deposit. Novice traders tend to start with small deposits, and while that’s rational, it can seriously limit your potential earnings.
Leverage is also incredibly important: higher leverage rates allow you to open larger positions, but the risks associated with extreme rates are also significant. Traders also use different pairs: while most of them use stable pairs like EUR/USD or GBP/USD, you can find less popular yet more profitable pairs and successfully monetize them. Other important aspects include your broker’s conditions, your skills, or even your psychological state. But how much money can you make trading Forex on average?
How much professionals make
Considering all the above, you can look at the average earnings of professionals to understand what you can expect to earn in the long term. There are several estimates, but they are pretty close to each other: it seems professional traders earn from about $94,000 to $106,000 a year. While these are nice sums that can make all efforts and money invested in your trading education worthwhile, you will earn much less at first.
What a novice trader can make
Of course, complete beginners start with tiny profits: according to Traders Union surveys, an average beginner trader makes somewhere around $10 a day. To increase your earnings, you should probably use a demo account to practice without risks and find a training program: many Forex brokers provide them for free.