Your long awaited article is here. Do you want to know how to trade forex? Are you looking for a way to make money easily on the forex market? Am guessing the frustration of your losses has set in and you are about to quit trading. This moment is your salvation. You will learn how to easily make money on the forex market from this article. This article explores the question, how much money do bankers make on the forex market and how best you can also use this knowledge to your advantage? Know beforehand that this knowledge doesn’t guarantee absolution of profit for every trade you make but it will help you move from your current level of income. That’s for sure.

I believe that forex trading is relatively easy. That is if you know what you are doing. Bank traders make up only 5% of the total population of traders on the forex market and the speculators make up the other 95%. Yet, this 5% population of bank trader’s account for 92% of the forex markets trade volume. So if you know how the bank traders trade, forex trading will be very easy for you. You will walk away from your computer a happy man almost every day. First, let me clear up the myth about forex traders in institutions. These traders don’t sit there every day making proprietary trading decisions. Eighty-five percent (85%) of the time, they are making trades on behalf of their clients. This is called clearing the flow.

How banks trade forex?

How do investment banks make money on the forex market? Despite what you might think, forex bank traders are allowed to only make 2-3 trades per week for their trading accounts. They only make trading decisions when everything, both technically and fundamentally lines up. And they are judged yearly as to whether they deserve additional bonuses or not.

They use both the technical and fundamental method of analysis like everyone but unlike most of us, they make results. Many traders make a very complicated technical analysis of the market. They often use many mathematical indicators which tend to have a 3-4 hours’ time lag and contradictory as well. With these indicators and style of analyzing the market, you are bound to fail miserably.

Contrary to popular belief amongst traders on how to analyze the market, all the bank traders want to know is where the main critical levels are. The bank traders are the market. They make decisions in split seconds based on some main fundamental and technical changes. When you are able to master how they trade, you will be trading with the market, not against the market.

How to use forex to make money?

The key aspect of trading on the forex market by bank traders is economic fundamentals. When political situations are opposing announcements made by central banks, the direction of currencies is somewhat disjointed. On the other hand, when there are no political issues and the central bank policies are in accordance with economic data, the big trends, as well as pure currency direction emerge. This is what forex bank traders look out for. Nevertheless, it is true to state that the complexity of the fundamental aspect of the forex market can take years to master.

Trading on the economic data releases can make you lots of money.

To achieve this goal, you must first to have an excellent understanding of the fundamentals and the effect of the various economic data releases have on the market. Secondly, you need to know how to execute the trades with accuracy and without any holdbacks. If you manage to have a mastery of this aspect of trading on the forex market, coupled with the confidence to make trades on these events then you will be on your way to making millions off the market. Because these are the same releases that the central banks base on to make policies and also these economic releases are what direct the currencies. So, in reality, you will be killing two birds with one stone because you not only have information pertaining the central bank but also you will be filling your pocket. Trading on the economic release is the untapped mine.


It is always better to aim higher in life that is why if you follow these ideas on how to trade effectively to yield better results you will be successful in the forex market. This strategy saves you the money you might use to purchase forex robots. This method of trading is actually tried tested and the proof is in the results made by bank traders. If you want to be a shark, learn to swim with sharks. These bank traders trade with the market and if you want to achieve the kind of results they achieve, then you do what they do. It’s as simple as that.

By Ricardo Martinez

Ricardo Martinez has been active in the financial markets for around 10 years. In the early days in his career he was a trader and worked as market analyst in different online brokers advising clients on key decisions of trading instruments in foreign exchange and commodity markets. Ricardo is currently working as independent trader with diversified portfolio over different markets. His writing for LearnMarketonline is part of his commitment to share knowledge with traders.