How much capital can a professional currency trader build up per month? This question is, perhaps, one of the most discussed topics on various Forex - forums and other resources of the corresponding subject matter. However, unfortunately, there is not so much really valuable information.

And it is not surprising - experienced market participants are not in a hurry to share their secrets, let alone disclose the size of the sums made trading online. Not as an example for beginners in currency trading, who are often willing to share their achievements, but the profit and loss ratio of such traders is not very attractive.

What Is Respectable Performance for Forex Traders?

If we talk about the actual state of affairs, we agree that trading is a tool for making a quite decent  Forex returns monthly. Constant training and application of basic rules of a trader allow making this process the main source of income. However, in most cases, inexperienced people lose the deposit made by them. The probability of such a development is quite high for a beginner trader because this method of earning contains many nuances and pitfalls that can lead a beginner to a complete collapse.

It is necessary to assimilate a simple truth: trading makes rather strict requirements to the traders from the point of view of both psychology and strategy search. It is usually not easy for a beginner to find complete information, allowing to achieve regular success. The very process of trading can be compared with ordinary business. The essential difference is that while conducting his own business, a person is engaged in a specific, familiar to him sphere of activity. In the process of trading, one has to manipulate financial instruments, without deep knowledge of which it is impossible to get a stable profit.

The amount of income of different traders fluctuates and largely depends on the initial capital. For this reason, it makes no sense to consider the possible profit in absolute terms. A more correct value is the percentage of profit. An important factor affecting the income is the practical experience of the market participant, so they should be divided into several categories.

• Beginners

Most old-timers in financial markets are convinced that this category of players is only able to lose their funds, thus ensuring a harmless existence of brokers. Of course, it is impossible to vouch for the reliability of this information. At the same time, statistics is a stubborn thing, and it shows that the lion's share of traders remains at a loss during the first 3-4 months. Many of them leave, but the rest of the people, who managed to finalize the chosen strategy during the year, still go to positive trading balance.  

• Amateurs 

This category has already learned not only to get to break-even point but also to receive a certain income. The period of time it takes to rise to this level is 4-12 months. These figures should not be confused with the time really spent on training. The latter depends on the initial level of a beginner, the ability to learn and other circumstances. One of the determinants of success among amateurs is the trading strategy chosen for them and strict adherence to predetermined rules. The average monthly income ranges from 15-25%. However, some traders prefer to use a strategy, which is characterized by moderate or high risk. In this case, the rate of return increases to 25-50%. Practice shows that higher risks usually have the opposite effect. There are many examples when seemingly successful traders completely lose their deposits in the next few years, having made only 3-4 mistakes with high risk. On average, amateurs with an underlying deposit of $10,000-$50,000 are able to achieve Forex monthly return ranging from $5,000 to $25,000. But such a result requires a good starting capital, initial basic knowledge, and an experienced mentor. Only in this case, we can talk about a successful trader. He receives a solid income and has already appreciated all the advantages of this work. 

• Professionals

This group of specialists uses trading not only their own capital. Unlike amateurs, investors trust them, giving their investments to management. They are approached by individuals whose financial knowledge is not sufficient for independent trading. 

Professional traders carefully choose financial instruments for their investments. Their action must be clear to the professional. Only those assets, which practically did not cause any failures, are taken into account. Any risk can be accepted only if it is fully justified. Such traders consider the monthly income of 2-3% quite acceptable. A significant amount of absolute income is achieved due to large initial investments. These figures also include commissions from investors who have entrusted their funds to a professional.