How Much Do Day Traders Make? Key Factors Explained

Day trading can look like a fast track to financial freedom, especially on social media. You see screenshots of big profits, quick trades, and people claiming to make thousands a day. But what’s the reality behind the numbers? How much do day traders really make?

The truth is that day trader income varies widely. Some traders do well, some break even, and many lose money, especially in their first year. Your earnings depend on many factors: how much capital you start with, what you trade, your strategy, discipline, and even the market itself.

In this guide, we’ll break down exactly what affects day trading income, how much traders make on average, and why futures trading is one of the most flexible paths to get started.

Key Takeaways

• According to Glassdoor and Indeed, U.S. day traders earn between $40,000 and $120,000 per year on average, with top performers making $200,000 or more. However, these numbers are skewed by a small group of high earners.

• Day trader income varies widely, but most beginners lose money. Only a small percentage of traders reach consistent profitability, and success depends heavily on risk management, discipline, and experience.

• Futures trading offers a lower barrier to entry than stocks, allowing active day trading without the $25,000 minimum required by the PDT rule. This makes futures more accessible for smaller accounts.

• The most important factors that influence how much a day trader makes include starting capital, strategy, win rate, market conditions, and platform costs. Futures contracts, especially micro contracts, offer flexibility for traders of all sizes.

What Is a Day Trader?

A day trader is someone who buys and sells financial instruments within the same trading day. The goal is to profit from short-term price movements. Day traders don’t hold positions overnight. Instead, they close out trades before the market session ends, sometimes within minutes or even seconds.

Day trading is fast-paced and often requires making dozens of decisions in a short amount of time. Traders rely heavily on technical analysis, charts, indicators, and price action. They look for patterns, momentum, or short-term inefficiencies in the market.

Types of Assets Day Traders Trade

Day traders operate across a wide variety of markets. Some of the most common include:

• Stocks: Individual company shares on exchanges like the NYSE or Nasdaq
• Options: Contracts that give the right to buy or sell an asset at a set price
• Cryptocurrency: Digital assets like Bitcoin or Ethereum, traded on crypto exchanges
• Forex: Currency pairs traded 24/5 on the global foreign exchange market
• Futures: Contracts based on commodities, indexes, currencies, or interest rates

Some traders specialize in one market, while others rotate between assets depending on volatility or opportunity.

Day Trading vs Investing

It’s important to understand how day trading differs from investing:

• Day traders seek short-term profits, often holding positions for minutes to hours.
• Investors seek long-term growth, often holding for months or years.
• Day traders rely on charts and price action, while investors focus more on fundamentals like earnings, company news, and macroeconomic trends.

Day trading is more active, requires more time, and carries more risk. But for those who thrive under pressure and enjoy analyzing markets, it can be an exciting career or side hustle.

Want to trade actively without the $25K PDT rule?
Futures contracts are a popular choice for new and experienced day traders. Create your MetroTrade account today to start trading live futures.

How Do Day Traders Get Paid?

Unlike a traditional job, day trading doesn’t come with a guaranteed paycheck. How much a trader earns depends entirely on their performance, risk tolerance, capital size, and ability to stay disciplined in fast-moving markets.

There are two common types of day traders: independent retail traders and those who trade for institutional or proprietary firms. Their income models are very different.

Independent Retail Day Traders

Independent day traders use their own money to trade. They work for themselves (usually from home) and keep 100% of their profits after commissions and fees. While this gives them complete control, it also means they carry all the risk.

Retail traders must fund their own account, manage their own risk, and deal with inconsistent income. Some months may be profitable. Others may result in losses. Most new traders don’t earn consistent profits in their first year, and many never reach long-term profitability.

One of the biggest challenges retail stock traders face is the Pattern Day Trader (PDT) rule, which requires at least $25,000 in a margin account to place more than three day trades in a five-day period. This rule doesn’t apply to futures traders, which is one reason many retail traders are drawn to futures markets.

Dive deeper into day trading futures

Institutional and Proprietary Day Traders

Institutional or proprietary (“prop”) traders work for firms that provide capital, tools, and training. Instead of using their own money, they trade with the firm’s funds. In return, they share a portion of their profits, often called a “profit split.” Common splits range from 50/50 to 80/20 in favor of the trader, depending on performance and structure.

Some prop traders receive a base salary, especially at larger firms or hedge funds, but many operate on commission only. The advantage is access to more capital, advanced trading platforms, and mentorship. The downside is performance pressure—if a trader doesn’t produce, they often lose access to the desk.

Learn about switching from prop trading to live trading

How Much Do Day Traders Make? Real-World Data

So, how much do day traders really make? The answer depends on how you trade, what you trade, and who you trade for. There’s a big difference between independent day traders using their own capital and those working for a proprietary trading firm or institutional desk.

Let’s break it down.

Independent Day Traders

Most people who start day trading do so independently, using their own money and trading from home. These traders don’t earn a fixed salary. Instead, their income comes from realized gains after costs like commissions, software, data feeds, and taxes.

Here’s the reality for most self-funded retail traders:

• Only a small percentage (often cited as 10–20%) become consistently profitable over time.

• Income varies month to month based on performance and market conditions.

According to user-reported data on forums, surveys, and anecdotal sources:

• A profitable independent trader might earn anywhere from $1,000 to $10,000 per month depending on capital and skill.

• Many experienced retail traders aim for a 5%–10% monthly return on capital, though this is far from guaranteed.

Prop Firm and Institutional Day Traders

Day traders who work for proprietary trading firms or institutional desks have a different income structure. These firms provide capital and technology in exchange for a share of the profits.

Typical pay models at prop firms include:

• Profit splits: Traders may keep 40–80% of the profits they generate.

• Performance tiers: Higher payouts for hitting monthly or quarterly targets.

• Draw accounts or stipends: Some firms offer a modest draw or base stipend while traders ramp up.

According to Glassdoor and Indeed:

• Entry-level prop traders earn between $40,000 and $60,000 per year, usually after building a consistent track record.

• Experienced prop traders often make $80,000 to $120,000+, especially if they scale up volume.

• Top 5% performers can exceed $200,000 to $300,000+ annually, particularly in high-volatility markets or with firm-backed leverage.

Institutional day traders, such as those at hedge funds or trading desks, often receive base salaries plus bonuses tied to P&L performance. These roles usually require prior experience, licensing, and a proven track record.

Capital Size Plays a Major Role

How much capital you start with has a direct impact on how much you can earn or lose as a day trader. While skill, strategy, and discipline matter most in the long run, your account size sets the limits on what’s realistically possible day to day.

A trader with a $5,000 account will have a very different income ceiling than someone trading with $50,000 or $100,000. That’s because capital affects both position size and risk tolerance.

Larger Capital = More Flexibility

With a larger account, you can:

• Take more trades per day without overexposing yourself

• Use wider stop-losses and longer setups without risking too much of your capital

• Scale your position size as your performance improves

• Handle inevitable drawdowns without blowing up your account

On the flip side, traders with smaller accounts are often forced to:

• Trade with tighter stops

• Use micro-sized contracts only

• Risk a larger percentage of their account on each trade

• Miss certain opportunities due to capital constraints

Capital Controls Risk Per Trade

Many traders recommend risking no more than 1–2% of their account per trade. That means:

• With a $5,000 account, a 1% risk = $50 max loss per trade

• With a $25,000 account, that same 1% = $250

• With a $100,000 account, it jumps to $1,000

This risk cap determines what kind of setups and markets you can realistically trade. A trader risking $50 per trade might stick to Micro E-mini contracts, while someone risking $1,000 could trade full-size contracts or multiple positions simultaneously.

Futures Traders Get More Leverage for Less

One advantage of trading futures is that you don’t need a large account to get started. Many brokers, including MetroTrade, offer low intraday margin requirements, meaning you can control large contract values with relatively little capital.

For example:

• Micro E-Mini Russell 2000 Index (MYM) intraday margin on MetroTrade: $81.05

• Micro E-Mini S&P 500 Index (MES) intraday margin: $187.62

Note: As of August 2025. Intraday margins are subject to change at any time.

That means you can potentially open and manage trades with just a few hundred dollars in your account without needing to tie up thousands in capital.

Strategies and Win Rate Matter

Not all strategies are equal. Some traders scalp for small gains multiple times a day. Others take 1–2 trades per day based on patterns or news. Regardless of style, success depends on:

• Win rate (how often you win)

• Risk/reward ratio

• Consistency and discipline

Futures Strategy Example:

• Trade Micro E-mini S&P 500 (MES)

• Aim: 10 ticks = $12.50 profit per contract

• Trade 3 contracts = $37.50 per trade

• Do this 3 times/day = ~$110 daily (before fees)

Even small daily wins add up if you stick to your system and manage risk.

Full-Time vs Part-Time Day Traders

Not every trader approaches the market the same way. Some treat day trading like a full-time job, while others trade part-time around their work schedule. Both paths can work; what matters is choosing an approach that fits your lifestyle, goals, and capital.

Full-Time Day Traders

Full-time day traders spend most of the trading session at their screens. This is their main source of income, and their routine often resembles a regular workday.

Common traits of full-time traders:

• Trade 4–6+ hours per day, often during the most active market hours

• Have a structured routine, trading journal, and risk-management plan

• Rely on trading as their primary or only source of income

• Need consistent performance and emotional discipline to avoid burnout

Many full-time traders work for prop firms or trade larger personal accounts. They usually have the capital and experience to scale their trades and manage risk professionally.

Part-Time Day Traders

Part-time traders are often balancing trading with a full-time job, school, parenting, or other responsibilities. They may trade before work, after hours, or during lunch breaks.

Benefits of part-time trading:

• Lower pressure to earn a full income from trading

• Can focus on 1–2 high-quality setups per session

• Great for skill-building without the stress of “having” to trade

Challenges include limited screen time and sometimes missing the best hours of the day, depending on the asset class.

Pro Tip: Futures are ideal for part-time traders because they offer extended hours nearly 24 hours a day, 6 days a week. You don’t have to be at your desk during regular stock market hours to find opportunity.

Choosing What Works for You

There’s no right or wrong choice. Some traders start part-time and go full-time once they’ve proven they can trade profitably. Others prefer to keep trading as a side hustle while maintaining stable income elsewhere.

Ask yourself:

• How much time can I realistically commit to trading?

• Do I need immediate income, or can I grow slowly?

• Can I stay disciplined without watching the markets all day?

What matters most is having a plan that fits your life and risk tolerance, whether you’re trading one hour a day or six.

Tools, Platforms, and Costs

When you think about how much money day traders make, it’s easy to focus only on winning trades. But the tools you use—and what they cost—play a major role in your bottom line. Every dollar spent on software, subscriptions, or commissions is a dollar you have to earn back through trading.

That’s why understanding the true cost of trading is just as important as your strategy.

What Day Traders Typically Pay For

Whether you’re trading stocks, crypto, or futures, most day traders need to pay for:

• A brokerage account to place trades

• A trading platform with live quotes and order routing

• Real-time data feeds from exchanges

• Charting tools and indicators

• Market scanners or analysis software

• Commissions and fees per trade or per contract

Some brokers bundle these tools into one monthly subscription. Others charge separately for each feature. In many cases, traders pay $100 to $300+ per month just to access basic tools.

How MetroTrade Keeps Costs Low

At MetroTrade, we’ve made it simple and affordable to start day trading futures without sacrificing quality.

Here’s what we offer:

• Free MetroTrader platform access without subscription fees

• Live, customizable charting tools built right into the platform

• Low-cost commissions at just $0.29 per micro contract and $1.09 per e-mini

• Support for mobile and desktop trading

• Access to a growing library of educational content and guides

Unlike many brokers, MetroTrade doesn’t charge platform fees or hidden maintenance costs. That means more of your profit stays in your account.

The Impact of Risk Management

Even the best strategy will fail without risk control.

Good traders focus on:

• Position sizing (risking a smaller amount of capital per trade)

• Stop-losses to limit drawdowns

• Daily loss limits to avoid emotional trades

Example: If you risk $50 per trade with a 2:1 reward, your target is $100. That means just 2 solid trades per day could earn you $200 while keeping risk in check.

Day Trading as a Business: Expenses and Taxes

Day trading is like running a small business. You need to track:

• Monthly expenses (platform, data, internet, etc.)

• Trading education and tools

• Computer hardware

In the U.S., futures trading is eligible for Section 1256 tax treatment:

• 60% of gains taxed at long-term capital gains rate

• 40% taxed at short-term rate

This blended rate may lower your overall tax bill compared to stocks or crypto. As always, consult a tax advisor for specifics.

Learn more about how futures are taxed

A Common Misconception About Day Trading

When it comes to day trading, there’s no shortage of bold claims and bad information, especially on social media. Many people get drawn in by screenshots of big profits or influencer content that simplifies the reality of what it takes to succeed.

Here’s the most common myth new traders believe:

Myth: “You need $25,000 to start day trading.”

This is one of the most widespread (and misleading) ideas in the trading world. It comes from the Pattern Day Trader (PDT) rule, which applies to stock and options traders in the United States. The rule requires that you keep a minimum of $25,000 in your brokerage account if you want to place more than three day trades in a five-day period.

But here’s the truth: The PDT rule does not apply to futures traders.

With futures, you can place multiple trades per day, even with a small account, and still remain compliant. This is a major reason why many retail traders choose to start with futures instead of stocks.

How to Increase Profitability as a Day Trader

If you’re serious about becoming a consistently profitable trader, here’s what helps:

• Start with a free demo account (MetroTrade offers one)

• Track your trades in a journal and review results

• Focus on 1–2 strategies and master them

• Use micros to start small and scale up

• Avoid the PDT rule by trading futures instead of stocks

The path is slower than influencers suggest, but it’s possible with the right mindset and structure.

How to Become a Day Trader

Interested in getting started? Here’s a simple roadmap:

1. Learn the basics: Watch videos, read books, or take a course on trading and technical analysis. Check out our Learn page for a full futures trading course.
2. Pick a market: Futures are ideal for small accounts, offer leverage, and trade nearly 24/7.
3. Open an account: Choose a platform like MetroTrade with low fees and fast execution.
4. Use a demo account: Practice your strategy risk-free before going live.
5. Go live: Use micros and tight stops while you build skill.
6. Track and improve: Journaling and backtesting help you refine your edge.

Conclusion

How much do day traders make? The answer depends on the trader.

There’s no guaranteed salary. But with the right mix of capital, risk management, and consistency, some traders do earn a full-time income. Most, however, need time to become profitable.

Futures trading offers an accessible way to get started, especially because you don’t need $25,000 to begin. If you’re ready to take the next step, start by practicing in a simulated environment and treat trading like a real business.

Ready to Start Trading?
Open a MetroTrader account today and explore the futures markets risk-free.

FAQs

The content provided is for informational and educational purposes only and should not be considered trading, investment, tax, or legal advice. Futures trading involves substantial risk and is not suitable for every investor. Past performance is not indicative of future results. You should carefully consider whether trading is appropriate for your financial situation. Always consult with a licensed financial professional before making any trading decisions. MetroTrade is not liable for any losses or damages arising from the use of this content.