How do foreign exchange traders make money?

Many traders work for large investment firms or commercial banks. You may make a base salary and then receive performance bonuses based on the success of your transactions. Others work as forex brokers, who charge a commission for every transaction they make. Independent foreign exchange traders make money whenever they make a sale that results in a profit. It is a career that can come with a considerable amount of risk, and you must be able to recognize and mitigate risk whenever possible.