The Forex market is a market full of opportunities, where huge amounts of money are moved every day by several Forex traders. A trader who faces such a market often tends to ask himself “How much can I earn with Forex?” or “How much does a Forex trader earn?”, but also “How much does a beginner trader earn?”, since many of you will certainly be novice.
After all, there are many aspiring traders who would like to devote themselves to Forex trading and start earning a good amount every month. But doing it is not that easy, is it?
If you too are interested in online trading and would like to take the first steps in Forex, it is good to know the real prospects of gaining with Forex from the beginning.
Earning with Forex: dispelling the myths
Let’s start by specifying that making money with Forex is possible: after all, trading online is an activity like any other, where to be successful one must be prepared and, above all, use with logic.
Yet, in all these years online trading has been mistakenly depicted as an activity that would allow you to earn large amounts in a short time. Or as an “in or out” activity: that is, you either start earning immediately, or you are not “brought” for online trading.
This is absolutely not the case: Forex trading takes time and dedication, like any other business. Think about your driving license: did you get it simply by going to the driving school and then you immediately started driving, or did you have to take courses, read books about it, do tests and then a lot of practice with a car?
The concept of “studying and practicing” is very important in Forex trading. Despite this, he is often underestimated by many aspiring traders, who prefer only to study superficially the most important concepts, and then they immediately open an account for Forex trading. And that’s how they ultimately lose all the money invested.
Now that we have understood that Forex must be considered as a real study subject, and therefore it takes dozens and dozens of hours of study and practice to understand its bases and logic, we only have to answer the fateful questions.
How much does a trader earn?
How much can you earn with Forex? How much does a trader earn and how much does a beginner trader earn? It would be nice to have a direct answer, to be able to indicate a precise amount and thus satisfy all readers. But the reality is different: there is no specific amount because it depends on many variables.
First of all, we specify that through CFDs, from 65% to 89% of traders close the year negatively. This is because financial trading is often not perceived as a real job, but as a hobby or, even worse, a “game”.
In fact, we can state with confidence that the first 2-3 months of your Forex trader activity will be spent studying and practicing a lot, testing your Forex trading strategy (which we will discuss in the next paragraph). So in these initial months your earnings will be zero.
And what about the following months? The most important thing is that, when a trader decides to really start investing in Forex (everyone has their own “times” of learning and practice), they do so by setting achievable goals.
Not having a profit target in Forex trading is highly counterproductive. It would be like a marathon runner who runs without a goal, not knowing where the finish line is.
To give a trivial example: thinking of earning 50% of your capital invested in just one month is an impossible goal (or better yet, crazy). But even setting the figure at 20% in a single month, especially if you don’t have years of experience, still remains an impossible goal.
We assure you that even aiming for a 5% monthly is a more than valid goal. And doing so in the long term can lead to excellent results: if you earn 5% of the capital invested every month, at the end of the year you should mark a nice +60% (without considering the capital earned each month that maybe you add to the amount to be invested).
As you can see, it is impossible to give a precise figure of how much you earn with Forex. Also because a lot depends on the amount with which you decide to start investing. To continue the example, one thing is to start with € 10,000 and earn 5% on that amount per month, another one is to start with € 2000 and earn 5% on that amount per month.
Without considering that the gain also depends on the type of Forex trading strategy you will use, in addition to how much time you will spend on trading. In general, to give guidelines, when it comes to earning with Forex trading, remember that:
- You must set realistic goals
- You must focus on earning in the long term
- Never believe to those who propose you easy money in a short time
Demo account for Forex trading
Demo account, trial account. If you have approached the world of Forex trading you have certainly heard of it somewhere. And everyone seems to sell it as “the first cure” for less experienced traders, a real must have for those who want to open a trial account to practice with regulated and safe Forex Brokers.
The demo account is nothing more than a real account but having a virtual balance. In this way, all the operations you are going to do with a demo account will be done using virtual money: in other words, you will be able to practice without risking real money.
In addition, the demo account is often used to test a trading platform before registering with the broker and opening a real account. But also to try a trading strategy before using it with the real account.
To summarise, the demo account is used to:
- Practice safely
- Test a trading platform
- Try a trading strategy
There is therefore no doubt that using a demo account is certainly important for all those traders who have never traded with Forex before. But we want to put you on guard: using a demo account will not magically make you a “perfect” trader.
First of all, you need to use the demo account in a right way, that is, trying to make the experience as close as possible to using a real account, with real money. So when you use a demo account to practice you should:
- Make a note of all the operations realized during the day/week
- Take into account profits and losses
- Set weekly/monthly earning goals
- Decide a maximum weekly/monthly amount to invest, as well as how many trades to open
- Follow a trading strategy and a Money Management plan
We also add that you should strive to work hard on the “psychological and emotional” sphere linked to Forex trading. For those who are not used to it, investing with a couple of clicks even hundreds, if not thousands of euros, can be destabilizing as a first experience.
For this we want to emphasize that trading with a demo account will never be the same as trading with a real account. Because there is no stress related to investing your money, as well as the related emotions (anxiety about how an operation will go, anger over lost money, euphoria for a gain, and so on).
So it’s ok to use the demo account, but never forget that, when you switch to the real account, you will still find differences on an emotional and psychological level.
Make money on Forex with Social Trading – eToro
First of all, we mention the eToro broker, leader in the Social Trading sector. It is an online broker that allows you to trade on various assets, including of course the currency pairs of Forex. It offers both CFD trading and real trading, in the latter you can only invest on stocks and cryptocurrencies upwards, not downwards. To be precise, the list of assets available on eToro is as follows:
- Stock indices
- Forex currency pairs
The eToro broker has revolutionized the world of online trading especially for its Social Trading platform, which attracts more and more investors, both professionals and beginners. The reason is simple: Social Trading has excellent potential.
Thanks to Social Trading you can follow other traders and copy their operations in real time (all automatically, thanks to the “Copy Trading” system of the eToro platform). In addition to this, you can interact with other traders by sharing market analysis and opinions, as well as having the opportunity to ask questions and advice.
eToro broker allows you to have a free demo account at your disposal: just register with eToro and you will immediately have access to your demo account. But eToro also offers benefits for more experienced traders.
In fact, thanks to the “Popular Investor” program, a trader can earn monthly commissions depending on the number of people who follow his account and copy his trades daily.
Make money on Forex with IQ Option
IQ Option is a Cyprus based Forex broker that operates under the CySEC license. In addition to many other markets, IQ Option allows you to trade Forex. Here you can buy or sell a currency with CFDs.
IQ Option also offers binary trading for professional clients, while it offers CFD trading for retail traders, therefore also for beginner traders.
Could IQ Option be right for you? Open a free demo demo account today thanks from our link below!
Yes, but it is not obvious or easy. In the same way you can lose money. Before investing, it is important to fully understand the currency market and the risks you can take.
You need a Forex broker, which is a financial intermediary. In this post you can find what we consider the best.
Forex means Foreign exchange market and it’s the currency market, where you can exchange one currency for another.