As a Forex trading signal provider, one of the questions we get asked most frequently is how much money can one make from forex copytrading. 

This is an obvious question to ask. Everyone knows Forex trading can be incredibly risky. Yet, the only reason anyone would want to invest their hard-earned money into their business idea is if it can also provide reliable returns that are higher than other options like stocks, mutual funds, or real estate.

But before we answer this question in greater detail, let’s take a minute to understand the fundamentals and jargon used in this business, so that we are on the same page.

What is a signal provider and copy trader

Forex trading is a lot more difficult than regular stock trading. In addition to being subjected to the push and pull of two different currencies, forex trading is also leveraged. 

What does this mean? Well, if you are buying $1000 worth of EURUSD, and you are leveraged at 1:100, then it means that you are actually buying 100x$1000 worth of the currency pair. This way, when the price of this instrument grows by 1%, your profit is not $10, but instead, it’s $1000. 

The downside is that when the price goes down by 1%, you are not losing $10, but instead $1000. In fact, your loss can be higher than the amount you are betting on this particular trade. 

This is why Forex trading is risky. And professional traders spend a lot of time not just analyzing which instruments to trade, but also on their risk management. This way, even if things don’t go per plan, you can still get out without losing a lot of money. 

Signal providers are traders who have proven success in Forex trading. They work on specific strategies with respect to when to place a trade on what instrument, and what profit level, they need to close the trades. 

Copy traders are the average investors. They have their own full time jobs, but want to make passive income through Forex trading. These copy traders can choose to copy the ‘signals’ provided by the signal providers. 

This means when the signal provider buys EURUSD, you buy EURUSD as well, and when they close the position, you close the position and take profit as well.

In return for this service, you pay the signal providers a fee. This could either be a monthly subscription fee, or a percentage of the profits you have earned through this partnership.

How much do Signal Providers earn?

There are thousands of signal providers, and how much money they make can vary by quite a bit. But let’s do the math based on common knowledge. 

The average signal provider uses a trading account that is anywhere from $100 to $10,000 to trade. The reason they start so low is because the strategies you use to trade on a $100 account is different from what you use on a $10,000 account. And since most first time copytraders come with very small investment amounts, the use an account that is of a similar size to trade. 

A $100 account typically uses high leverage (usually 1:100 or 1:500, but sometimes even higher at 1:1000 or 1:2000). 

Forex traders typically use a risk-reward ratio of 2:1. That means, they try to derive a profit of at least $20 while cutting their losses when the trade goes negative of $10. 

Also, good signal providers have a win ratio of around 70%. That is, of 100 trades they place, 70 are wins, and 30 are losses. 

Finally, good Forex traders play it very conservative with position sizes. Generally, they only use 1-5% of their account to open a new position. 

Putting all this together, and assuming you place 5 trades a day, a $100 account can make around $1000 a month after commissions. That is, highly leveraged Forex signal providers can earn about ten times their account size each month. 

But let me be very clear that this is an extremely optimistic scenario where you find a really good trader at 1:500 leverage. More often than not, you will find traders who get lucky and make this kind of money one month, and then blow it all away when the market trend changes the next month. 

So, you are indeed gambling with your money at this point. 

As a responsible Forex signal provider, Rafrador does not play with high leverages. We use a leverage of 1:30 which is quite conservative. This means that while earnings are not eye-popping, we ensure that your capital stays protected at all times as well.

At Rafrador, we generally see a return of between 0.15% to 0.25% returns each day on a $2000 account. This works out to around 5% ROI every month, or as high as 40% to 60% returns in a year.

How much money do copy traders make?

As a copytrader, you are generally at the mercy of your signal provider. If your signal provider has a good month, you have one too. 

The two most popular ways to buy trading signals is either with a subscription fee or with a profit sharing arrangement. 

At Rafrador, we offer our signals both ways. 

For our strategies to work reliably, we request our copy traders to invest with a $2000 account. 

If you opt for a subscription plan, you pay around $30/month for the signals. But all the returns for you to keep. 

This means, on a $2000 investment, you make around $1000-$1200 profit each year. 

Alternatively, if you choose a profit sharing agreement, you only pay us when we make you money. 

If we have a 20% profit share, then with the Rafrador system, a $2000 investment could make you about $800 to $1000 profit a month. 

IMPORTANT DISCLAIMER HERE: I mentioned earlier as well, but none of these returns are guaranteed. Past performance is no indicator of future success. Forex trading is very very risky and there is a very good chance we lose money on our trades as well. So copytrade responsibly and only put in money that you can afford to lose. Your money is your responsibility. 

Comparing Forex Copytrading earnings with other investment options

So, how good is the returns from Forex copytrading compared to other options. 

The average ROI from stock market investments (including index funds, mutual funds, etc.) is around 10%. 

While you can’t buy property with $2000, you can invest in real estate trusts called REIT that provide a 4% ROI – similar to what a tenanted property would return. 

Comparing these options, this is what you have: 


  • A $2000 investment on Forex copytrading gets you about $800 in 1 year. 
  • A $2000 investment on stock market gets you $200 in 1 year
  • A $2000 investment on real estate gets you $80 in 1 year

Forex trading is risky. But if you have money you can afford to lose and you understand all the risks, then it is worth giving a try since the returns can potentially be much higher.