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HOW MUCH MONEY DO FOREX TRADERS ACTUALLY MAKE?
Whether you’re interested in the markets or not, the reality is most people get into forex trading to try to earn a larger income. This typically starts as a ‘side hustle’, then progresses into a full-time job at some point when the profits replace the income from a 9-5. You may have seen traders making hundreds of thousands of pounds per week in the markets on Instagram, but this is far from reality and unattainable for 99.9% of traders. Which leaves the question, how much money do traders actually make? In this article, we’ll be discussing how much money forex traders actually earn, how to earn more from your forex trading and the steps you need to take to get there. So, let’s get into it…
How Much Money Do Forex Traders Make?
Forex trading has often been thought of as a ‘get-rich-quick scheme’, due to marketers on Instagram and YouTube claiming to earn hundreds of thousands of pounds a month and driving a Lamborghini in Dubai. However, this is far from the truth.
Forex trading is far from a get-rich-quick scheme – in fact, 90% of traders lose money in the markets. The 10% of traders that earn money in the markets are typically seasoned traders with many years in the markets and a lot of skin in the game. The reality is that there is a lot of money to be made from forex trading. However, it’s not a quick ride, and it’ll take many years to get to a large amount of money, but it’s very doable and many of our funded traders have achieved this.
The Average Profit Of Forex Traders
The sad reality is, around 90% of forex traders make £0 profit from the markets. In fact, 90% of traders lose money in the markets due to a lack of experience and a lack of risk management – which they usually think they’re good at. The average profit of a forex trader is around 2-4% per month, on their trading accounts. It’s hard to say how much money traders typically have in their trading accounts, but we can assume that the average would be a few thousand pounds. If we make the assumption of 3% per month return on a £3000 account, that is an average monthly return of £90. This is obviously a minimal sum of money and not worth dedicating years of your life to.
However, if you earned a 3% monthly return on a £1,000,000 trading account, you’d have an average of £30,000 profit per month, which is much more appealing. This is where prop firms like Lux Trading Firm come into the equation…Â
How To Make More Money From Forex Trading?
As we’ve just discussed, if you’re coming into the markets with a small amount of savings, you only really have three options if you’re looking to make some good money…
Option 1 – The Long Game
You can use a conservative risk profile and compound your forex account for the next 10 or 20 years, and you’ll eventually have a great deal of money. However, this will take a considerable length of time if you’re earning a few percent per month on average.
Option 2 – High Risk
The second option, which is a terrible option, is to use a very high-risk profile on your personal funds. This would take you from earning potentially 3% a month to 30% a month – which leads to much faster compounding. However, you’re more likely to blow up your funds and have nothing left, a losing streak in the markets.
Option 3 – Prop Firm Funding
The better option is to use forex prop firms to obtain funded accounts. For example, Lux Trading Firm gives traders funding of up to £10,000,000 over time. Prop firms typically put traders through a challenge to gauge how profitable traders are and how they manage risk. Then, once you’ve become a funded trader, you’ll receive a profit split and keep a large percentage of the profits you make from trading the firm’s money. For example, with Lux Trading Firm, you’ll earn a 50% profit split and at every profit milestone you achieve, your capital will be largely increased.
Steps To Take To Earn Money From Trading?
The first step you need to ensure you achieve is setting realistic expectations. Folks that are trying to sell you trading courses and signal services will tell you that you can be making thousands of pounds a week within the first few weeks of trading – this is far from the reality. The reality is, even if you dedicate a few hours per day to learning to trade forex, you will not make a profit in the first year. In fact, you’ll lose everything you started with – so bear that in mind. Next, you’ll need to start learning to trade. You’ll want to absorb all the free online materials and start studying every day, the same way you would if you were learning a language. You’ll need to put a huge amount of chart hours in to start understanding the markets and being able to see setups in real time. Likewise, you could pay for a course, if you wish – but we’d advise against this as 99% of course sellers are unprofitable traders trying to make a quick buck from the industry.
Then, you’ll want to set up a demo account and start utilizing your new trading plan in the markets and tracking your performance. Once you’ve done this profitably for 6 months or so, you’ll want to commit to a live trading account. Once you’re on the live account, you’ll want to either become prop firm funded or deposit into your own live account if you wish. Keep learning – getting one profitable strategy is not enough eventually!
In Conclusion – How Much Money Do Forex Traders Earn?
In summary, successful forex traders do make a lot of money. However, 90% of traders do fail to earn money in the markets and the 10% of traders that do earn an income from trading typically earn very little due to having access to minimal capital. If you’re looking to do this properly, you’ll need to leverage a prop firm to get access to a large amount of capital!
Are you looking to become a funded forex trader? Work with Lux Trading Firm today!
About Company :-
We are a leading proprietary trading firm based in London (UK), specializing in supporting experienced prop traders.
Our commitment is to help traders excel and provide the tools and capital they need to compete in a marketplace defined by change and disruption.
We are focused on seeking out trading and investment opportunities to grow our capital in the global financial markets.
Click Here For More Info.:- https://luxtradingfirm.com/
Social Media Profile Links-
https://www.instagram.com/luxtradingfirm/
https://www.youtube.com/@LuxTradingFirm/featured
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