These people do not understand anything substantial about forex. Many people have developed a misconception that forex trading is a scam.
However, trading profitability is different when comparing less than million-dollar businesses and billion dollars businesses (large capital) because each business is scalable to some point, and investing and trading have enormous profitability with more significant funds. Forex trading ROI is less than many other businesses such as IT business, advertising, etc. Forex trading is a profitable business in the case when trading portfolio capital significant. Many other professions offer better ROI (Return on investment).Ībove, we can see the part answer to the question is forex trading profitable. If traders risk less than 1% of the portfolio at the end of the successful year, profit can be 20%-25% on average. The best forex trader in prop companies can profit from 20%-25% with less than 5% maximum drawdown.īased on ROI, forex trading is not a highly profitable business too. However, institutional traders and traders from prop companies generate profits trading currencies and managing large portfolios. Retail traders making either risk too much, either over trade or create small profits on several positions but then holding on to a losing trade for too long, losing more than the initial investment. In this article, we will discuss forex trading profitability.įorex trading is not a highly profitable business for retail traders based on all significant brokers’ reports because 70%-95% of all retail traders lose money in trading every year.