How to start earning on Forex? - ForexProp

How to start earning on Forex? - ForexProp

Money-making options on Forex for beginners and professionals.

Types of earnings in Forex: active and passive earnings, description, and realization. Advantages and disadvantages of each option For many potential traders, Forex is associated with speculation on the foreign exchange market.

However, there are more than a dozen other options for earnings, which are associated with trading directly or indirectly.

And while they all require some kind of knowledge or skills, this is not a reason to discard them. In this article, you will find information about all the major types of earnings on Forex, practical examples, and the advantages and disadvantages of each type.

Options for earning on Forex 

Forex is an over-the-counter foreign exchange market, where every day thousands of traders make hundreds of thousands of transactions worth millions of dollars. Someone loses, someone gains.

Someone is disappointed, and someone becomes a professional, and for them, trading is not just a job, but a way of living. Forex is multifaceted. Despite the rumors surrounding the over-the-counter speculative trading, the market continues to live like a beehive.

If you ask traders about their understanding of earnings on Forex, the most frequent answer would be speculation or earning on the difference in exchange rates. This stereotyped thinking prevents many from taking the path of success. In this review, I will tell you about more than 10 ways to make money on Forex, and maybe you will find something for yourself.

How to make money on Forex? Active and passive earning on Forex

The options for making money on Forex can be divided into two types: active and passive. In the case of active earning, the trader is directly involved in it. It does not have to be trading per se, but, for example, actively attracting potential broker clients through an affiliate program.

In the case of passive earnings, the investor invests money and their capital works for them while the investor is free to do other business not related to Forex. It is possible to combine the two types of earning.

1. Trading

If you are interested in the prospect of earning money on Forex, read many articles online, and decided to try your hand, first you should choose a brokerage company and register as a client. If you thought you should start by reading the literature and articles on the subject, this is not the case.

It will be very boring for you to read literature without combining it with practice. You need to study trading on the foreign exchange market directly on price movement charts. You can read on how to choose a reliable broker here. You read and practice at the same time - this is the only way to learn to trade.

How it works. This is earning on fluctuations in the rates of various assets. You can earn on CFDs (contracts for difference) for currency, commodity assets, stocks, and indices. Recently, most brokers have added cryptocurrencies to their lists of instruments

I would like to mention two things:

Swap. This is a kind of overnight payment for keeping the position. Without going into details, a swap is linked to the discount and interest rates of other countries. There is a situation when, as they change, instead of paying a fee, a trader may earn on the swap (the so-called positive swap). This strategy is called Carry Trade.

Rebate. This is not quite earnings of the trader, but rather compensation for their costs, but traders should still remember about this option. It is a partial return of the spread to the trader regardless of the effectiveness of the position.

Both the broker itself and third-party independent services can provide compensation. For a broker, a rebate is a marketing move aimed at attracting traders, increasing their trading turnover, or increasing interest in certain assets.

The essence of trading is to buy cheap and sell expensive, and vice versa. The trader has several tools for this: fundamental and technical analysis, as well as the trading platform in which the trades are carried out.

The trader can open long positions (buy an asset in order to sell it later) and short (sell an asset, then buy it cheaper and close the debt position). The transactions are executed by a broker who charges a commission (spread). Counterparties to transactions are other private traders, institutional investors, investment banks, etc.

A trader starts with registration (opening a trading account) and verification. It involves providing passport data, scans of documents confirming the place of residence (registration), and personal information. Verification is not always required.

But I am of the opinion that opening a bank account is not anonymous for a reason, and my money is safer when I can prove that it is mine. Why? Our traders' blog editor described the essence of the verification very well in the article Security on Forex.

The next step is to test the broker's capabilities and gain experience by opening the first trades on a demo account. A demo account allows you to:

  • Understand the platform functions and choose the most convenient trading mode.
  • Get acquainted with the capabilities of indicators, test advisors, and develop your own strategy. In short, take the first steps, earn the first, albeit virtual, money, and learn to feel the market.

And finally, the decisive step is the opening of a real account, depositing, and finally, trading. The live account features allow you to:

  • Open any number of positions to buy or sell any asset from Litefinance's arsenal, including cryptocurrencies, in a few clicks. Track the movement of the rate and analyze its change in past periods.
  • Copy trades of successful professional traders automatically. In the Social Trading system, an investor can get acquainted with the traders' ranking, trading statistics, and risks to choose the most suitable trader (read more on the service below).

To those who want to learn more about the capabilities of a live account and start trading, I recommend reading this article. It contains a detailed description of the functions of each menu item and gives practical examples of working with it.


The brokers' arsenal includes up to 200 and more instruments. In comparison with the stock exchange, there are much more opportunities for diversifying risks and implementing the craziest strategies. To some extent, Forex combines all the advantages of stock, currency, and commodity markets.


  • You need to have extensive knowledge of fundamental and technical analysis and be able to use it. You need to be able to build a trading system, to analyze trading history. You need to be able to control yourself and be disciplined. It can take months to learn, this is why not everyone achieves success. According to statistics, only 5% of people remain in trading, the remaining 95% lose their deposit and leave the market.
  • High risks. Forex is an unregulated market, despite the presence of so-called regulators. The lack of transparency of brokers and the principles of their operation is a stumbling block for potential traders.

2. Social Trading

Those who are not eager to scrutinize the essence of independent trade can explore the advantages of copy trading. You can copy the trades of successful traders to your own account, in part or in full, which will save you from the anxiety of making trading decisions on your own.

Trades are copied in exchange for a percentage of your profit from copied trades, which is set by the traders providing their positions for copying.

How it works. Social trading (or LAMM accounts, lot allocation module) is a service for copying trades in amounts proportional to the funds of the investor. It works like this:

  • The investor adds their account to the account of the trader, whose positions will be copied automatically. In the case of PAMM accounts, the trader sees the amounts on investors' accounts and their numbers, but in the case of social trading, this information is closed.
  • All open and closed trades on the trader's account are copied to the investor's account.

There are three main options for trading on LAMM-accounts:

  • The broker's service if available. For example, LiteFinance provides this service.
  • ZuluTrade. An independent copy trading platform that brings together over a dozen brokers and their traders.
  • Copying signals from the developer of MT4. This is a platform that somewhat resembles the principle of ZuluTrade. There are also traders to whom you can connect and copy trades automatically. The advantage of the platform is that it has a much more convenient ranking.
    Traders are divided by groups based on maximum profit, reliability, reviews, use of leverage, maximum deposit, type of trading (manual or automatic), etc. Each trader's page contains conveniently grouped information on the account: statistics, slippage, mathematical analysis of risks, etc. Subscription to signals is available on the MQL5 website.


Each of these three most common options has its pros and cons. For example, social trading from an individual broker is inferior to joint copy trading sites in terms of the number of accounts for connecting (which is logical, since the platforms bring together traders from several brokers).

ZuluTrade is a specialized platform intended specifically for social trading, it has many interesting tools and multinational chat (including discussions of every trader). But the start deposit here is from 300 US dollars. Continue reading with Litefinance...


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