Average Monthly Income
Professional forex traders in corporations may earn $6600 monthly on average. Prop company traders earn $500-$10,000 per month. 10% of retail forex traders earn $500-$5000 monthly. Trader income varies. Independent traders have variable, non-fixed income. Salaried traders’ pay depends on seniority, workplace, country, and market position. Traders’ salary depends on fund size, profit-sharing, commission, bonuses.
Base Salaries and Bonuses
Each trader gets a low base salary, like $40K. Most pay comes from bonuses, 2-3 times the base. Bonuses can be zero if performance is bad. Market makers earn from the spread, bid-ask pricing, and liquidity commissions.
Mark-to-Market Accounting
Professional traders use mark-to-market accounting so all income/loss is ordinary. There are no long term capital gains/losses since open positions are marked to market yearly.
Earning Potential for Beginners
In 2022, a beginner can earn $100 daily in Forex with a $200 deposit, trading EUR/USD at 1:100 leverage aggressively. More deposit means more potential profit, up to $5000 daily theoretically with a $10,000 deposit. But professionals limit risk, earning 5-10% of their deposit daily.
Prop Firms and Trading Methods
Acceptance at offline prop firms is low. Recommendations from acquaintances may be necessary. Firms require investing personal capital for access to tools while dedicating utmost time.
Day traders use several methods to extract profits depending on preferences and strategies. Many keep capital in separate brokerage accounts. They withdraw to personal accounts periodically when profits accrue.