In the course of the past 30 years, financial markets have exploded with new trading venues and technology. The number of people following trading strategies has increased as well, some to make their fortunes, while others are merely following orders. The following article explains the different career options available to the currency trader, particularly for the currency trader’s salary.
What Profits Can You Count on?
Most people agree that making a living on the financial markets isn’t easy. There are no overnight successes, and the market fluctuates almost daily. However, the salary of currency traders in forex depends on their portfolio size and some other things. Let’s dive deeper and be more specific on how much you can count. The salary of a currency trader can be categorized into four categories:
- The first category is traders with a monthly turnover of over $20,000, who usually have their portfolios traded manually;
- The second category has traders who have monthly turnover in the range of $5,000 to $20,000 but have developed specialized software that automates their trades;
- The third category has traders who trade less than $5,000 and develop their own strategy;
- The last category consists of the top traders with a monthly turnover of $1,000,000 or more.
It is noteworthy that traders at the uppermost level don’t solely depend on currency trading to make a living. Many of them use other trading strategies such as forex spread betting, leverage, algorithmic, and other derivatives strategies. Of course, you can count on larger incomes if you start a Forex business and launch a trading platform under professional guidance. But still, it all depends on the time you enter the market, how much you invest, and how well you market the platform.
How to Ensure Profitable Forex Trading?
Forex trading is a global marketplace. And as with any business, it has its fair share of salaries. What kind of salary can you make if you work as a currency trader? This is not a common question for most traders, so you may not be able to expect a standard answer.
The truth is, there are quite a few different factors that come into play when you are trying to figure out how much you are making. First and foremost, you’ll want to remember that currency trading is not like most other jobs. If you were to work a regular job, you would likely earn anywhere from $25,000 to $100,000 each year (in the U.S.). The currency trading industry, however, is a different story.
In many cases, the typical salary is from $12,000 to $30,000. This kind of wage is generally the baseline for most traders who are just starting out in the industry. If you are working for a firm that is actively trading Forex, however, the median salary is around $60,000 a year. This is higher than the industry average, but most people don’t get to that level very often.
In terms of your responsibilities, you will likely be part of a team, meaning that you are one of many looking to earn profits through Forex. You will have to work at a fast pace, as your goal is to manage a lot of different trades. Because you are working with multiple people looking to earn profits, you will likely be trading with the expectation of making money and not losing it.
Does a Trader’s Salary Depend on a Person’s Performance?
In many cases, your success as a trader depends on how well you manage your trades. If you are good at predicting currency trends, you could earn more, while poor traders might be earning less than $10,000 a year.
Before you start making trading decisions, you should keep in mind how many hours you will need to be at the keyboard. You may be able to make up for a long, long day, but even if you can’t, you’ll still need to factor that into your schedule.
If you were to begin your career in Forex trading, you might be wondering if you need a degree to begin with. As far as the industry is concerned, however, the answer is no. You can easily learn how to trade, and if you do not have a degree, you can certainly earn one through your time in the business. If you are not the type to have a traditional career path and don’t mind getting a little hands-on experience, Forex trading can certainly be an option for you.
A forex trader has one simple goal: making money. While there are many aspects of this, the most basic component is the amount a forex trader earns for each trade. Of course, it directly depends on the amount of the equity of a trader’s account.
In turn, the equity in an account is based on the size of the account and the amount of money a forex trader has deposited into it. The latter is directly related to the amount of risk a forex trader is willing to take and determines the level of account size one can afford to work with.
For example, a trader with $100,000 to risk will be able to enter a trade daily with a $100,000 account, while a trader with $25,000 to risk would have to keep a smaller account size, typically $50,000 or less. In other words, the amount of risk a forex trader will take will determine what kind of account size one will have. And obviously, the higher this level is, the more revenue can be expected.
Currency Trading Salary: What Does It Take to Be a Successful Forex Trader?
Currency trading can be a lucrative career path, especially if you stick to SEO strategy tips, but you will need to be committed to the position. You will need to learn a lot of trading techniques and have a strong desire to learn. In the end, the most successful Forex traders are those who are driven to make a consistent effort to learn.
If you aim to become a successful currency trader, you should expect to make profits in the long term. While trading is a fun hobby, you have to keep in mind that it is necessary to invest. You’ll be making big investments each time you open a position. The bottom line is that you have to be aware of your long-term goals and remain patient. Anyway, there are more pros than cons. So it is no wonder that the forex market is the largest financial market in the world, with a daily volume of $6.6 trillion. And we expect that this number will increase in the coming years.