Traders use different time horizons and tools (like technical analysis and/or fundamentals) and have different expectations for their forex trading returns (profits).

Here are few examples of trading strategies:

  • Day trading: buying and selling within the same day

  • Swing trading: holding a position over a few days to profit from a price change 

  • Range trading: trading between identified technical resistance and support levels

  • Scalping: a trading strategy focusing on small price changes for fast profit (some brokers ban this activity)

  • Carry trade: when you buy a high-interest-rate currency against a low-interest-rate currency

  • Economic data trading: trading based on the implications of fresh economic data

Is forex trading profitable?

It can be, but it’s certainly not for everyone. The European Securities and Markets Authority (ESMA) requires brokers to emphasize the percentage of traders that lose money trading CFDs (through which a significant part of forex trading is done). Depending on the broker, this figure usually is between 60-90%, with a lot of brokers BrokerChooser has reviewed reporting numbers in the 70-80% range.

As the saying goes, “If you don’t know who you are, the stock market is an expensive place to find out.” The same holds true for currency trading.

At BrokerChooser, we cannot give you trading advice. We recommend using a demo account if you’re about to explore how to start forex trading. Using a demo account can be the best way to learn forex trading.

Author of this article

Dan Sallai

Author of this article

My goal is to help people find our resourceful content when they need the most. I combine my 10+ years online marketing experience with the team's finance knowledge to reach that every day. On the side I'm paying bowling, tennis and enjoy spending great time with my children.
My goal is to help people find our resourceful content when they need the most. I combine my 10+ years online marketing experience with the team's finance knowledge to reach that every day. On the side I'm paying bowling, tennis and enjoy spending great time with my children.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

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