Salary: it’s one of the most commonly asked question topics in the trading world. Do traders really live the luxurious lifestyles in The Wolf of Wall Street or is it true that traders lose the majority of their income on unstable markets? How much do forex traders really earn? And what’s the average forex trader salary?
In this blog we take a look at the average forex trader salary in the UK and the US - and the average bonus payments on top of this salary. It’s worth noting however that these numbers differ greatly between trading firms and will change depending on experience and profitability.
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What is the average forex trader salary?
According to Payscale.com, the average forex trader salary is £43,977 in the UK - this is based on an average of 29 anonymous trader salaries. However this average differs between sites - according to indeed.co.uk, the average salary in the UK is £36,182, so it’s likely the average falls somewhere in the middle.
In the US, according to indeed.com, the average forex trader salary is $62,543 - which is a higher salary average than the UK and is based on the data from 44 anonymous trader salaries.
Below you can see the average forex trader salary in different UK cities according to Indeed:
- London: £44,956
- Manchester: £35,044
- Birmingham: £33,259
- Leeds: £29,427
What is the highest forex trader salary?
In the UK, the highest forex trader salary is reported as £103,000. In the US, the highest is reported as $179,000 - although it’s worth bearing in mind that these salaries will differ depending on the level of the trader’s experience, their company and seniority.
It really does depend on experience - for example, according to Payscale, a junior trader with 1-4 years of experience earns an average of £41,446 (based on 16 salaries).
A mid-level trader with 5-9 years of experience earns an average of £66,129 (based on 8 salaries). However, a senior trader with 10-19 years of experience earns an average total compensation of £85,000 (based on 6 salaries).
What is the lowest forex trader salary?
According to Payscale, in the UK the lowest forex trader salary is £25,000 - and in the US this is $14,000. Again, this is dependent on trading experience and seniority.
What is the average forex trader salary bonus?
The average forex trader salary bonus is £20,000 - although, according to Payscale, this can range from £4,000 to £50,000 a year depending on your company’s policies, your performance, and your level of trading experience.
What can I expect from my salary as a trader?
Your salary as a trader will be greatly dependent on a number of factors: your job role; the company you work for; your profitability; profit sharing; your trading experience or level of seniority, and the bonus you might receive. As we’ve seen above, the national average in the UK is between £36k and £43k.
Here are some other factors to consider:
As a trader, you’ll have multiple income sources:
- Monthly salary
- Profit share
- Profit split
These will differ depending on your role and your company’s policies - so make sure you double check these with your manager or firm’s accounts team!
It’s likely that as a beginner trader there may be a lot of upfront costs before you can see your profits - for example:
- Computer hardware and software
- Training course fees
- Commuting costs
- Monthly subscription fees if you’re trading with a firm
- Desk costs if you’re at an office or co-working space
So it’s a good idea to sit down with a calculator to work out your monthly salary by deducting any additional costs you may have.
As we’ve seen above - the average forex trader salary can differ a lot, depending on the firm you work for, your performance and your experience. However, one thing is certain: profitability on trades equals more profit for you, so the best way to ensure a good salary is to hone your trading ability. Good luck!
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