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How Much Annual ROI is there for Forex Traders?

Many investors value investments using one key ratio — Returns on Investments(ROI).

Simple ROI gives you an overview of the return percentage on what you put in as capital over a defined timeframe.

Laying down specifications on investments in Forex trading, the capital you’ve put in place is the deposits sitting in your broker’s account.

Opening the question to the public on how much ROI you can make will receive as many replies as there is the number of traders.

I, too, may fall into giving out an inflated figure.

But What Do Established Traders Say?

Next, let’s pique the minds of traders and feel what they say about trading:

Joseph Lee

Joseph gives a very realistic answer from his case; he’s been five years into trading.

And two of the first account for scary experiences- blowing accounts one after the other. After learning and mastering the ropes, the last three have been a winning spree.

Taking note, Joseph has key statistics at his fingertips — Only 5% of traders live through the struggle to join the winners across the grind. Also, he blames marketers in the name of brokers who eagerly lure newbies into opening accounts without adequate preparations.

Looking deeper, John can share spreadsheets documenting his wins and losses. And for half a year, John’s wins are more than the losses.

Winning more than losing in an FX strategy is a turning point- it’s the level you break even.

On an honest note — not many guys commit to keeping a trade journal in the first place!

Therefore, we can agree that John’s trading strategy is good- he can protect his capital and keep growing it over time.

Here’s a link to find more juice to his clarion call- “Never Give Up.”

Dorrow Green

Dorrow Green also gives a very ruthless reply- “Difficult to answer.”

Dorrow shares that every trading strategy comes with its ROI, and I concur.

In more acceptable words, Dorrow shares that winning or losing is a factor that depends on the movements of the market. You can win pips all through the week, and the next, you score losses.

Dorrow says that bagging 10% or 100% or 300% with a specific timeline is unrealistic since markets are always unpredictable. Trader expectations differ and dictate from the realities that occur subject to market fluctuations.

The parting shot from Dorrow is a wish of -Good Luck — with — “Don’t make ROI in trading Forex — take as much as the market gives!”

ALeeza Miller

ALeeza gives a very evasive answer.

Nevertheless, She has excellent nuggets for one to pick on.

And very authentic according to her- the markets in Forex can make the richest or poorest.

But to tilt the gains to your side- you require sound principles in trading. Plus the nuts to maintain that balance all along. Also, a correct management system and strategy need to be in place.

To some extent, it also depends on luck- a point which I do not concur with!

And finally, Aleeza’s conclusion is that it’s so uncertain about making money trading FX.

Martin Hoch

Martin is aware that of all newbie FX traders, slightly above 90% end up blowing accounts within the first three months. He refers to it as negative average returns.

Contrary, for the professionals who weather across the stormy learning curve, he puts ROI between 20% to 100% on an annual basis.


Saiful is optimistic — and cites hearing traders scale from nothing to something- raking in millions. It’s highly probable that it results from super-focussing on it and learning incrementally until everything pays off.

It’s best to approach it from the reason ‘Why’ one is trading:

  • Are you trading FX for a living?
  • Are you in FX to supplement your income streams?
  • Or taking on FX to build a retirement portfolio?

Agreeably, goal setting plays a centric role in why you are trading Forex. And best if your trading strategy is sufficiently reliable to win more than it loses your trades.

Derek Sanderson

Derek says that, on average, the ROI will be negative. And that accounts for the fact that most traders keep losing money on FX trading.

Hence, counting those earning consistent profits narrows down above 10% but not exceeding the 30% mark annually.

In an exceptional case, it’s a possible maximum of 100%. But again, only a truly extraordinary case. And anything beyond that(100%) per year is a pure lie.

In My Words

Trading FX is lucrative. You can hit 100% within a year, but let’s shelve the idea of winning and ROIs for now.

The most important thing is your capital before talking about this % or that % in ROI.

Whatever strategy you use — let capital protection be the paramount goal.

There’s no sense in fixing your ROIs to some random and mouth-watering % at the expense of your capital.

My Bet. It’s best to have your capital intact a year or two down the line than lose the focus on capital protection while chasing that elusive ROI percentage. Sounds reasonable?

So two solid takeaway pillars:

  • Work on a strategy that protects your capital as the priority
  • Second, consider winning positions more than you lose

These two will help you grow your account towards great figures.

Also, do not set figures and timelines for profits or so forth. That’ll also target a fixed ROI bound within your set time limits.

Wrapping Everything Together

We have the statistics. Many newbie FX traders lose along the way.

While learning the ropes and creating a killer strategy is a sure bullet, fixing ROI makes the equation worthlessly complex. You can double your account every year- doing it right.

Winner strategies take time to learn, document and test over for reasonable periods.

And keep your trading journal up to date- always!

Honestly, let’s drag our feet away from the ROI thing- and first things first!

Winning strategies- and never forget that winning strategies protect your capital first.



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Maina James

Maina James

Forex Trading, Cryptocurrency, NFTs and Blockchain Writer