A Forex compounding calculator is a tool traders use to not only calculate future returns but also estimate fees and costs. The Forex compounding calculator can be used in two different ways: To compound your gains over a period of time or to inform you about fees and costs in your Forex account.
Basically, compounding is when you earn interest on both the initial amount that you invest plus any previous gains made by that investment. In Forex trading, if we were to take our original investment and add any Forex gains we have made since then, this will give us the total value of our Forex investment.
Forex gains can be made in Forex through many different methods. Some of these Forex trading strategies include Forex Scalping, Forex Hedging, Forex Autopilot etc...
There are multiple trading accounts available to you including Micro, Mini and Standard accounts. These types of accounts have the same features but differ in how much you pay per trade. Different Forex brokers also charge different fees depending on the type of account you choose. Fore
x Forecaster has an extensive Forex broker fee (account) table.
Forex Compounding Calculator Methods:
The first way to use a Forex compounding calculator is to see how much your Forex investment will be worth in the future if it continues growing at the same rate until that point. For example, we will assume we have an initial (starting) balance of $100 and compound this Forex account monthly. Our current balance is now $200 and we do not make any more trades. Therefore, our total Forex gains so far are $100 and therefore our total value is $300 after 1 month of gains. The next step would be to assume our Forex account continues to grow by the same amount every month and see how much we will have after a year. Using the Forex compounding calculator below, I assumed an initial Forex balance of $100 and Forex gains in my Forex account of $5 per month.
