First of all, a beginner should understand what Forex is and how to make money on it. It is a foreign exchange market created in the 70s, which allows banking organizations and international companies to exchange currency. Unlike the stock market, it does not have a single exchange and is divided into several trading sessions.
Over time, more and more speculators began to come to Forex, who began to be called traders. These people sought to make money on changes in exchange rates. With the development of the Internet, trading was transferred to the online mode, a huge number of brokers appeared, which provided access to transactions and for this, they received a certain percentage from users. However, in those days, many of them worked dishonestly, and many traders suffered significant losses. What is the current situation? Of course, you are primarily interested in how much money is earned in Forex. There are many real-life examples where people have managed to earn a lot of money (millions of dollars) by trading. But there are only a few such cases. There are also negative stories when people went into the negative, having invested quite large sums. In addition, often those who earned a large profit on Forex began to lose vigilance, made mistakes, and also lost capital.
According to the reviews of people who tell you how to make money on Forex from scratch, and have good trading experience, the average income is 10-20% of the amount put into circulation. In addition, the larger the deposit, the smaller the risks become. This is because there is an opportunity to trade for lower interest rates. It is possible to earn money on Forex without investing out of your pocket, but in any case, someone's trading capital must enter the market. One of the ways that helped many people get a starting amount or a permanent income without trading is teaching. This option is possible if you are well versed in trading and understand its principles. For those who have no experience in trading, there is another option to make money on Forex without investing. Brokers are interested in attracting new clients, so many of them offer favourable conditions that allow you to start trading without investing your funds and risk losing them. When you register on Forex and verify your data, certain cash bonuses are credited to your account. This money can not just withdraw: this will require you to fulfil several conditions, otherwise, they will simply burn.
Each broker offers its conditions, thanks to which everyone can start earning money on the Internet:
When making the minimum contribution, the newcomer is awarded a cash reward. A cash deposit on Forex can start from $ 1. At the same time, the bonus amount reaches thousands of dollars. But to use them in the future to withdraw, the trader must meet several conditions – for example, to make a certain number of transactions with a certain benefit for a given period. If this does not happen, the bonuses will be deducted.
Temporary promotions that allow you to try your hand and earn money on Forex without experience and knowledge. No deposit programs require registration. To withdraw the earned money, you must meet several conditions: open a certain number of transactions, open a lot for each fixed amount of profit, and record a profit by depositing your funds. As an example, not so long ago, the broker AZAForex held an action, during which he charged the 10 dollars for Article to earn money on Forex without investment.
All promotions and bonus programs are available only to new traders, so before choosing a broker, you need to ask on the Internet what favourable offers are currently available. Classic trading
It involves the traditional conduct of currency transactions. To start earning money on Forex, you need to choose a broker. The essence of the method is that you need to regularly monitor the market, buy currency at a low price, and sell at a higher price. But, to make a profit, you need to study for a long time, and after acquiring the necessary knowledge, you need to practice. And also, over time, you should develop your trading plan, without this, you can not earn money. Repeating the actions of professionals
Many people who only understand how to make money on Forex for a beginner, start with this method, since it is the easiest. It does not involve the need to delve into the nuances of trading – you just need to copy the trades of professionals.
Of course, few people with experience in earning money on Forex want to share strategies that have been developed over a long period. Nevertheless, there are some: they are ready to demonstrate their actions, receiving a percentage of the newcomers ' profit for it. The latter simply need to repeat the same thing on their account. Working with a PAMM account
Another way for those who have already achieved significant success in the foreign exchange market is to open a PAMM account and become a managing trader. And it is also necessary to provide a guarantee of the effectiveness of their work. Next, investors are attracted, who deposit their amounts to the open account. Thanks to this, the trader begins to trade with large amounts on hand, which significantly increases his earnings in Forex.
To use this method, you need to prove yourself from a profitable side and make a lot of effort: investors will not want to give their money if they are not sure of a positive result. Buying Signals
This method of earning money on Forex is similar to copying transactions. Traders use trading terminals-programs that track the transactions of professionals. The user connects to one of them, after which the system automatically performs the same actions with the established risks. Upon successful completion of the operation, a certain percentage of the income is transferred to the trader whose signal was purchased. The signals are sent to your email or mobile phone, so you can always stay up to date on how the trade is conducted. Here is an option to make money, which, by the way, is actively used. Using trading robots
Many people looking for information on how to make money on Forex, find the option of using trading robots. They are programs that conduct independent trading on the foreign exchange market and do not require user intervention.
To make transactions, robots analyze many factors: the change in the exchange rate over a long period, indicators, and others. The simplicity of this method lies in the fact that almost the entire calculation process is automated, and it is simply impossible for an inexperienced person to process such a large amount of information. Each robot can be configured to suit its preferences. Betting
Earning money on Forex is possible with the help of betting bets similar to those made in betting companies. The user needs to predict in which direction the exchange rate will change shortly. No actions are performed with the purchase and sale at the same time. The resulting profit depends on the size of the bet made. Investing
Above, we discussed a way to make money by opening a PAMM account on Forex yourself, but you can also become an investor by transferring your funds to other traders. This option is suitable for beginners who have an initial amount but do not have enough knowledge and experience. Income is generated automatically, and there is no need to monitor changes in the foreign exchange market. Partner Programs
You can earn money on Forex without investing by attracting new traders. This method is, in fact, a type of advertising and allows you to get a certain percentage of the funds invested by users.
the scheme of earnings on partner programs
A diagram of how you can earn money on Forex affiliate programs
To do this, you can use advertising on your resource on the network, create a White-Lable, act as an IB representative, or become an agent of a company that works with PAMM accounts. How much can a beginner earn?
In general, here you can earn a million, and quickly lose every single cent. There are quite a few traders in the world who have reached a stable high income in 3-5 years after the start of trading. But this does not mean that during this time there will be no profit at all. Many beginners without experience receive their first income within a few days after registration.
The average return on PAMM accounts leaves 200% per annum. When using investments, this amount can be raised to 300%. If you choose aggressive trading during the week, you can increase the deposit by 20-100%. Everyone knows that the Forex market allows you to earn good money. It is quite natural that every beginner who decided to try himself in this field is interested in how much you can earn in the foreign exchange market. In the search for a specific number, it turns out that it is not so easy to find it. This is because a fixed amount simply does not exist and the profit for each trader is different. But it is possible to get an idea of possible earnings.
What determines the amount of profit
As mentioned above, the amount of profit is individual for each trader. After all, speculators, as entrepreneurs, work for themselves and do not receive salaries. Many people are afraid of this because, unlike the monthly salary, the profit on the stock exchange is not always stable and there are no guarantees of permanent earnings. But in reality, it is possible to earn steadily on the Forex market, and many traders do it. Some earn millions of dollars a month, while others earn dozens. Let's look at why this is so and what affects the amount of profit.
Amount of capital
It is quite logical if a trader has a hundred dollars in his account, then he will not be able to make a million from it. If you want to earn tens of thousands of dollars a month on Forex, then your capital should be hundreds of thousands.
Consider a simple example with two traders who earn, say, 5% per month: the first trader has a capital of $ 100, and the second one has $ 10,000. Accordingly, the first trader in a month will make a profit of only $ 5, and the second 500. It's simple - more deposit, more profit.
The second most important factor, after the amount of capital, is the profitability of trading. The higher the effectiveness of the trading strategy used by the trader, the more he can earn. On average, professional traders can get 30-100% of the profit from the initial capital per year. A beginner will not be able to immediately make such a profit, at least stably. This figure depends on the experience of the trader, as well as his individual qualities.
Riskiness of trading
Also, a very important factor to pay attention to (especially for beginners) is the risks. To better understand its importance, consider this example:
Two traders have the same amount of capital in their account, say $ 10,000, and trade on the same trading system. But they have different risks: the first speculator decided to risk 10% of the deposit in each transaction, and the second only 1%.
Let's say that a very favourable period has come for traders, and they managed to make 10 profitable trades in a row. In this case, the first trader managed to double his capital, and now he has $ 20,000 in his account. And the second trader earned significantly less and his capital is only $ 1,100.
Now let's imagine the opposite situation: now traders have received ten losing trades in a row. For the first trader, this is a disaster, as he will lose his money. While the second trader will lose only $ 100 and there will be another $ 9,000 left in his account.
From this example, we can conclude that the greater the risk in each trade, the more you can earn. But at the same time, if the risks are too big, you can lose everything. Beginners are advised not to risk more than 2-4% in each trade in one trade.
How much can a beginner earn?
Many experienced traders claim that all beginners merge and only after some time, for which he will gain experience, will profit begin to come. But not everything is so sad. If a beginner passes the training, learns all the necessary materials for trading, finds or makes a profitable strategy on their own, and does not exceed the risks, then they may well consistently earn about 3-5% per month from the deposit.
For beginners, this may seem too little, since most beginners came for quick and easy earnings, but believe me, this is quite enough, and especially for a start. If you overestimate the risks and try to earn more, then very soon it will happen as in the example above: a series of failures will come and all the capital will be lost.
How much can a professional earn?
There is a misconception that only brilliant people can earn money in the Forex market. But this is far from the case. Trading geniuses make billions, and ordinary traders are quite capable of earning $ 10,000 or more every month. At the same time, such profitability is available to absolutely everyone. To do this, you just need to show perseverance, determination and patience, as well as constantly improve and everything will work out.