Hey Haddock, "the annualized ROI on forex trading" depends on each individual trader and what currency is used to calculate the ROI. Your open ended question can have no definite answer since there are an innumerable amount of FX pairs. These pairs are being traded either short or long and each pair can be perceived as an individual corp listed on the Stock Xchange. Just as a corp's shares fluctuate with the data releases/litigations/mergers, so too the FX prices are constantly fluctuating on the news/economic data releases, etc. (FYI, the major movements are caused by technicals rather than the fundamentals). Leverage too can determine the ROI. For instance, if you traded with a 100:1 leverage (as FXCM and most firms provide) and the market moved 142 pips today (GBP high 1.9699 and low 1.9557 so far today 12/21/06) and hypothetically you were the most luckiest man on earth and got to take the entire movement from the high to the low: all these 142 pips, then your return on each $1000 you took INTO the market would be $1,420 or 142%...Or you could also end up on the opposite side and take the 142% hit (Therefore, any trader would tell you that stops are necessary to protect you from the downside). Note that I am NOT promoting the FX markets in any way as this vehicle is EXTREMELY EXTREMELY risky due to the major volatility present every day. But as they say here on the trading floow, no volatility then no need for us traders (depends whcih side you fall under). If you do decide to go with it anyway, do so with only the capital that even if you lose all of it, will not affect your financial well-being in any manner...But first, set up a demo acct and see how that goes for you.