Is becoming a professional trader your ultimate career choice? If so, this article is for you. Here we’ll cover which trading professions are highly paid in the USA. We’ll also cover the payout of traders in different cities.
Professional traders look for small percentages or gain every month. While regular or retail traders want to double up their deposit. The monthly return of pro traders is not much high but consistent.
How much do professional traders make?
The amount they earn annually or monthly depends on the trading strategy, current market conditions, and the size of the account. Generally, they would earn 2% to 6% of monthly returns. In terms of salary, they get an average payout of $61,255/year in the USA.
Many professional traders trade with a winning strategy of risking not more than 1%. A reward and risk ratio of 1.5 is fairly reflective of what happens daily in the stock market.
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How Much Do Professional Trade Make A Year
The annual earning of a professional trader depends on the trader’s strategy, country’s overview, market situation, risk management, and type of services the trader provides.
In general, traders want to make 2 to 6% of investment monthly. Pro traders serving in different trading firms make an average of $61,225 /year in the USA.
Professional traders serving in different firms get approximately $29.44 per month. Zip Recruiter is continually collecting the data of salaries of professional traders in the job market.
According to Zip recruiter, the annual salaries of professional traders are as high as $148,000 and as low as $16,000. The average salary varies greatly. It means traders earn according to skills, experience, and location.
How Much Does A Professional Stock Trader Make
The amount of money a professional stock trader makes depends on capital, trading strategy, risk management, and the value of the stock itself.
To make a decent amount in investing stock trading, the recommended capital is $30,000. It means you can start forex trading with low initial capital as compared to stock trading.
Theoretically, it is possible to make 20 percent of your investment per month with professional day trading. But it is too difficult to hit this possibility in the real market situation.
Slippage and failure to get a winning position in every trade is the main hurdle of making huge profits like 20 percent per month. Even with a 55 % win rate, traders can’t make more than 15 percent of total capital.
How Much Does a Good Trader Make
A good trader is consistent and has a strong grip on emotions. He is fully aware of the risk factor involved in the financial war of trading. Good traders are mostly day traders or full-time traders. But swing trading is also profitable if you stick to the right strategy.
How much does a good trader make?
A good trader with an effective stock trading strategy and with a capital of $30,000 can make $ 7500. After subtracting trading platform fees, charting and other dues, the remaining amount is $7500-$2000=$5500/month. It is 18% of the total investment.
How Much Does An Average Trade Make
The amount an average trader makes per month depends on his trading strategy, trading type, skills, and capital.
In terms of salary, the average trader earns $80,080 annually and $1540 weekly in the USA. Depending on location, trading platform, and experience the payout varies mostly.
How Much Do Professional Trader Makes A Day
For pro traders making 10 percent to 20 percent is quite possible with a decent win rate. If the win rate is 50%, making 10 percent is possible with a risk-reward ratio of 3 to 4 by risking 1% of the account balance.
It all depends on your capital and risk management skills.
The more the capital in your account, the less you need to struggle to earn 10 percent of return. Though it seems easy it’s not as easy as it sounds.
Theoretically, it is possible to make 20 percent of your total capital. In the actual market situation, slippage and risk factor will not allow you to reach 20 percent with a win rate of even 55 %.
Table of Professional Trader Salary:
Category | Annual Salary | Weekly pay |
Top Earner | $150,000 | $2,884 |
75th percentile | $100,000 | $1,923 |
Average | $80,081 | $1,540 |
25th percentile | $37,500 | $721 |
How Many Pips Do Professional Traders Make
Most of the professional traders think in terms of % of account risk vs % of account profit target. Pips are counted when you have a specific pip target and stops.
So no matter a winner will always be a winner with risking 1% of the account balance and the loser will always be a loser with risking 2% or more of an account balance
Generally, a professional trader will trade an average rate of 10 pips per day. For example with a 1000 euro account, risking 2% per trade and 10 pops stop loss on each trade will generate 100,000 at the end of the year. That’s a decent amount!
It concluded that a professional trader can trade 10 pips per day. Though PIP is very much dependent on the currency pair you are trading.
For example, 5200pips trading GBPJPY is not the same as 5200 pips trading EURUSD. However, a pro trader will never go above 100 pips per week. It’s in the demo account that you can trade more than 100 pips per day.
What Are the Top 5 Best Pay Related Professional Trader’s Job in the USA
According to research, we found the top 5 related to the professional trading category that is highly paid in the USA.
The top 3 jobs include market analyst, options trader, manager option trader, and quant trader. The payout of all these jobs is 59 % higher than the average payout of professional or day trader salary($80,081).
If you are qualified and have experience in these fields, go and grab your spot.
5 Top Salaried Professional Trader’s Jobs
Job Title | Annual Salary | Monthly Salary | Hourly Wages | Weekly Payout |
Option Trader | $160,919 | $13,410 | $77.36 | $3,095 |
Manager Option Trader | $143,164 | $11,930 | $68.83 | $2,753 |
Quant Trader | $141,461 | $11,788 | $68.01 | $2,720 |
Senior Options Trader | $139,954 | $11,663 | $67.29 | $2,691 |
Equity Options Trader | $128,071 | $10,673 | $61.57 | $2,463 |
What are the 10 Highest Paying Cities for Professional Trader’s Job in the USA
According to data collected by Zip recruiters, we’ve found the names of 10 cities where a professional trader can earn more than the average national income ($14,484). Sunnyvale stands at the top of the list.
Let’s see the rest of the cities in the table below:
Table Of Top Paying Cities To Professional Traders In USA
City | Annual Payout | Monthly Payout | Weekly Payout | Hourly Wages |
Sunnyvale, CA | $99,376 | $8,281 | $1,911 | $47.78 |
Santa Rosa, CA | $96,116 | $8,010 | $1,848 | $46.21 |
Williston, ND | $94,565 | $7,880 | $1,819 | $45.46 |
Manhattan, NY | $94,315 | $7,860 | $1,814 | $45.34 |
Cambridge, MA | $93,150 | $7,762 | $1,791 | $44.78 |
Arlington, VA | $92,625 | $7,719 | $1,781 | $44.53 |
Dickinson, ND | $92,058 | $7,671 | $1,770 | $44.26 |
Ketchikan, AK | $91,714 | $7,643 | $1,764 | $44.09 |
Vacaville, CA | $91,359 | $7,613 | $1,757 | $43.92 |
New York City, NY | $90,637 | $7,553 | $1,743 | $43.58 |
FAQ
What percent do day traders make a day?
Theoretically, it is possible to make 10 to 20 percent of total investment by risking 1% to 2% of total capital in a day. But in actual sense, it is difficult as slippage and risk factor is the main trigger.
Even with a win rate of 55%, you can make only 15% of your total investment in a day. The more capital in your account, the easier it will be to hit high-profit targets per day.
How much do most day traders make?
The average income of day trading per day depends on the trading strategy, trading type, and capital.
For a stock trader, a day trader can make $ 7500 with a $30,000 investment (leverage 4; 1). After reducing charting and platform cost it will be $7500-$2000 = $5500.
Is it profitable to be a day trader?
Day trading is both profitable as well as risky. They hold positions overnight and trade during the daytime. They are mostly trend followers and trend reversal and get the benefit of sudden price moves.
It is profitable for only those traders who are consistent and stick to the effective trading strategy.
Who is the richest trader?
The name of the richest trader is Paul Tudor Jones (1954–Present). He was the founder of Tudor Investment Corporation, a $7.8 billion hedge fund. He made his fortune shorting the 1987 stock market crash.
The Ending Lines
It’s evident from the above post that professional trading is a good career choice. They can make a decent amount if they are offering services as a trader to a certain firm. If they are trading on their own it is also profitable.
All you need to do is to have the right trading strategy and risk management skills. In the USA it is a highly paid profession. The future of professional traders is bright in Australia, the USA, the Uk, and other parts of the world.