What ROI do the banks and Large Commercial Traders Make vs. Retail

Just wondering if anyone knew what ROI the large banks and commercial Traders made on average.

An average % or Invesment per month or year would be great.

Also how does this compare to the average succesful day trader? What is his average % per month or year?

I was running spreads on excell and it looks as if anyone could make even 50%/year they would easily be a millionaire within 14 yrs with an initial 5,000 deposit. And of course if things kept going that way they would also be a billionaire within 32 years.

Has there ever been anyone in history that has consistently made 50% ROI a year?

I hear sometimes on these boards of people making 5% a month. This would be 120% ROI/year!

Let me know your thoughts, you who know about the figures here.

Mike Lewthwaite

it’s all about money management. if you don’t like drawdowns, you will earn less but will see little drawdowns. i am testig a system that made 1389 pips ytd. with %5 risk per trade, it makes %427 and has %39 drawdown. with %1 risk per trade it makes %42,5 and has %8,5 drawdown. choose your own way :wink:

i’m not sure exaclty what banks work on, but bear in mind they have access to vastly cheaper sums of money than the rest of us. A bank will lend money and then sell the debt in the credit market for example, basically protecting their initial investment and then making extra money on selling the credit on. Another thing to bear in mind is the major corporate banks (DB, Credit Suisse, RBS etc…) are major currency brokers as well as traders, meaning they can see our order flow! This takes lots of guesswork out of laying off their liabilities. Essentially its a similar system to being a bookmaker, you price the goods in the market to a percentage that prevents anyone from staking all the options for a profit (much like the bid/offer spread). Any single ‘product’ which shows a liability can then be bet elsewhere. So a bank might only make 2% from its transactions, but the number and the fact they almost never take the loss themselves means they play a very different game.