Forex trading is a global business, but you might be wondering how well it pays in different parts of the world. Forex trader salaries, bonuses, and other compensation varies hugely.
The largest banks and dealers in the foreign exchange market are located in major financial hubs, including New York City, Tokyo, Paris, Sydney, London, and more. The compensation varies by city and the level of experience a trader has, but the industry is generous with hefty bonuses and profit-sharing plans. Here, we investigate forex trader salaries across the globe…
What are average forex trader salaries across the world?
How much do forex traders make?
Forex trading is an international industry, with investors from global markets participating. Given that forex is so diverse, it is only logical that trader salaries would vary across regions. Wages for forex traders can stretch well past six figures depending on industry experience and trade success.
Various factors, such as specialization and proficiency, affect precisely how much money forex traders earn overall. A forex trader with ten years of experience will make more than someone with just two years of experience.
Read how do big banks trade forex?>>
How much will you earn working for a big bank?
Also, an independent forex trader working in an emerging market will always earn less than someone who works for a major investment bank. Big banks pay their traders better because they take more risks and require more incentives to perform well. The type of company you work for also plays an essential role in determining your income.
If you work for an online broker, you will earn less than someone who works for a large bank because most online brokers offer low commissions for each trade. You also need to know that banks generate profits from their trading activities and commission fees from all clients combined and that gives them a huge advantage when it comes to setting salaries and bonuses.
Typically, a foreign exchange trader will begin their career with small starting capital from their employing firm. As they show their ability to meet the profit targets that amount of money, they will be allocated more capital which they can then trade as part of their day job. This process is repeated until, eventually, the 'best' traders have been given the responsibility to trade hundreds of millions worth of assets at any one time.
'How I got Started Trading for a Bank' - we speak to Cynthia about her experience trading for a big investment bank>>
What's the average forex trader salary in the UK?
The salary potential of forex traders in the UK is one of the highest in Europe, with Glassdoor reporting that the average annual base pay is £54 249.
This is not surprising considering the vast number of UK-based firms offering online trading opportunities. In fact, according to research published by Euromoney Institutional Investor Plc., London has more foreign exchange trading than any other city globally, accounting for 32% of all trades.
According to Indeed, London is the highest-paying city for forex traders in England. There, the average salary is £44,956 per year. Manchester is the second-highest paying city for forex traders, with an average annual salary of £35,044. And Birmingham and Leeds round out the top four cities in terms of pay for forex traders in the UK, with an average annual salary of £33,259 and £29,427 respectively.
Do you pay tax on forex trading in the UK? Read here>>
What's the average forex trader salary in the US?
According to Recruiter.com, the highest-paying state for forex traders is Connecticut, with an average base salary of $161,110 per year.
This is followed by New York, where traders earn $125,550 a year; then Maine and the District of Columbia at $110,270 and $102,210 a year, respectively.
Indeed data supports this trend. According to our research for the United States, the average pay for a forex trader ranges from almost $95,216 per year in California to nearly $89,245 in Boston. The national average is $78,285 per year.
When it comes to geographical location, it's worth considering that some of the most expensive cities in the US are also home to some of the highest salaries for forex traders. New York City would be one obvious example, but Boston and Las Vegas are also among the top five places with the highest wages paid to forex traders in America.Read how to find forex trading strategies to suit your day job>>
What's the average forex trader salary in Australia?
Forex traders in Australia are typically paid a base salary plus commission or bonuses. This can vary significantly depending on the company's size and your role. According to Payscale, the average trader salary is between AU$49,000 and AU$160,000 (US$36,000 - US$131,000).
Tied closely to the base salary is the bonus structure. Some companies pay bonuses based on the profits that traders generate, while others pay a flat rate. The former is more lucrative but also riskier. Forex traders in Australia average an additional bonus of between AU$7,000 and AU$55,000 (US$5,000 - US$45,000).
What's the average profit in forex trading? Read here>>
What's the average forex trader salary in Canada?
According to Indeed, the average forex trader in Canada makes $36,574 per year. The data also shows that Toronto pays the highest forex trader salaries at an average of $63,000. Calgary follows with an average of $36,715. Next are Ottawa ($35,494) and Mississauga ($35,461).
What's the average forex trader salary in Singapore?
According to Payscale, forex traders in Singapore make an average of S$51,000-S$199,000 per year. Bonuses are generally given as well, in sums that range from S$8,000-to S$79,000.
Other perks include profit sharing (generally S$0-S$59,000) and commissions (usually around S$0-S$80,000). The total yearly pay for a forex trader in Singapore is generally between S$55,000 and S$247,000.
Singapore is one of Asia's fastest-growing economies, which has drawn in traders who are eager to take advantage of its growth potential and its business-friendly regulations.
Want to know how much money our traders make? Read our Money Diaries interview with Widy here>>
What's the average forex trader salary in France?
In France, salaries for beginners or those who have been trading for less than three years are usually around $50,000 to $90,000 annually. Senior traders with five to ten years of experience can earn up to $150,000.
Salaries can go even higher if you work in a larger financial institution and have more resources at your disposal. However, French trader salaries are not as high as those in the United Kingdom or the United States.
What's the average forex trader salary in Germany?
Salaries for junior traders start from around €30,000 and can rise to €50,000. Average salaries for senior or experienced traders are between €100,000 and €200,000.
Still, with the right qualifications, experience, and performance-based results in the form of profits or losses, this can grow significantly. The main difference between junior and senior roles is the volume traders are allowed to trade and leverage.