Forex trading is one of the fastest-growing markets and runs twenty-four hours. It is also one of the markets that require the least initial capital to start trading. When one decides to go into Forex trading, they need a trading account. 

The trading account one chooses determines the capital deposit they need but also determines the number of returns they can get in a day and the long run. Alpari is one of the best Forex trading partners after successful trading for twenty years. The Alpari ecn account is flexible, transparent and offers one of the most efficient trading experience. It gives traders direct access to liquidity providers increasing your chances for more returns per day.

How Much Returns Can a Forex Trader Get

Returns Can a Forex Trader Get
Many traders join the foreign exchange market with expectations that too high and get disappointed when reality dawns on them. Traders need to learn all about the risks and how to manage them and also use past data to determine the maximum returns one can actually make in Forex trading per day. The amount of returns per day is very dependent on the trader. There are different aspects that go into an account to determine how much a trader can get from Forex trading such as:
  • Account size;
  • Risk appetite;
  • Risk management;
  • Trading Strategy;
  • State of the market;
  • Risk/Reward;
  • Trading leverage is chosen.

Win Rates and Risk/Rewards

Traders can now mathematically express their return expectancy and this will give you an expected return on every dollar they risk in each trade in the Forex market. Traders will always look for greater wins and minimize losses. Calculating their winning rates and expectancy will allow any trader to take any hypothetical scenario and see how much they expect to make before they trade. For example, let us look at a trader who has invested $5,000, has a winning rate of 60% and manages 100 trades in a month.

Trading Leverage and Currency Pairs

Different Forex brokers will provide different trading leverage and this goes a long way in determining expected returns. Forex brokers earn by increasing the spread between the bid and the ask. Currency pairs are limitless meaning traders can choose any trade that has better winning rates and trends that limit loss. In our example, the trader chooses leverage of 1:30 and picks a currency pair like GBP/USD risking up to $45 for each trade. If each pip movement is worth $10. The trader can take a standard lot with a 5-pip stop-loss order. This means a value of $60 on a winning trade having taken 6pips. Below shows how this trader will fair return wise in a month.
  • 60 profitable trades: 60 x $60 = $3,600
  • 40 loss trades: 40 x $45= $1,800
  • The gross profit that month would be $3,600-$1,800

This would give this trader $1,800 profit and with an applied broker commission of $500 a net profit of $1,300 meaning a return percentage of 26%.

Traders need to realize that it is possible to 20% returns and at times even more in a month but to remember in Forex trading, big losses are also possible thus realistic expectations will enhance caution when trading.