Here at AvantFX, you will notice that the prospect of making 500 pips a month trading Forex is something that we are keen on promoting and this is because it is very much a realistic goal.
If you have spent any time watching the currency markets, you will have noticed that the more popular currency pairs tend to feature high volatility, which is they have the ability to increase or decrease in value by significant amounts in a single trading day. For example, it is not uncommon to see the EUR/USD open at 1.15000 and have closed at 1.16000 in the space of 9 hours. That is a gain of 100 pips on just one currency pair on one trading day of the month. If you extrapolate this across an entire month you will begin to see just what is possible through trading Forex online.
Of course, some days will be better than others with losses along the way but an average gain of 500 pips a month is both realistic and achievable.
So How Much Money Can I Make?
Well that is entirely up to you. Elsewhere on this site we have gone into detail on exactly how earnings and losses are calculated within Forex trading but the summary is that it is very much dependent on your initial account balance which will determine your order or trade size which in turn determines pip value.
The standard lot which is the largest and most widely traded lot size will on average give you a pip value of $10 per pip, dependent on currency pair and current exchange rate. So for our target of 500 pips a month, this would see a gross gain of $5000.
For smaller accounts, a mini lot is a viable option which would see a gross gain of $500.
These examples show that two different traders who are equally successful can earn entirely different amounts trading Forex by the differences in risk management and risk appetite each trader has.
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