Some of the Best Traders in the History of Forex
In this article, we highlight some of the most renowned forex traders in history—individuals who achieved extraordinary success in their trading careers.
George Soros
George Soros, born in Budapest, Hungary in 1930, fled Nazi-occupied Hungary and later settled in London, England, where he began his career in finance.
In 1970, Soros founded George Soros Fund Management, a firm that has generated over $40 billion in profits over the past five decades. Soros gained international fame in 1992, earning the nickname “the man who broke the Bank of England.”
This recognition came after Soros profited $1 billion by shorting $10 billion worth of the British pound.
On September 12, 1992—a day now known as Black Wednesday—speculative trading led by Soros caused the British pound to collapse. The United Kingdom was forced to withdraw from the European Exchange Rate Mechanism (ERM), significantly weakening the pound.
Bill Lipschutz
Bill Lipschutz began trading in the 1970s after inheriting $12,000 from his grandmother. Although he initially turned this sum into $250,000, he lost the entire balance in a single trade. This harsh lesson on risk management profoundly shaped his approach to trading.
By the 1980s, Lipschutz joined Salomon Brothers’ forex desk and earned over $300 million for the firm by 1985. Over his career, Lipschutz made more than $1 billion.
He is a staunch advocate of risk management and avoiding margin calls at all costs, a principle that defined his success.
Stanley Druckenmiller
Mentored by George Soros, Stanley Druckenmiller worked at the Quantum Fund before founding his own hedge fund, Duquesne Capital, in 1981. Druckenmiller collaborated with Soros on the Black Wednesday GBP trade.
Throughout his career, Druckenmiller’s hedge fund remained consistently profitable. By the time he stepped back from trading during the 2008 financial crisis, his net worth had surpassed $2 billion.
Druckenmiller’s trading philosophy centers on capital preservation and risk management, always striving to minimize risks while maximizing returns.
Paul Tudor Jones
Paul Tudor Jones remains an active trader and investor today, recently gaining attention for his investments in Bitcoin. Jones first achieved prominence during the 1987 stock market crash, where he profited by shorting the market.
One of his standout forex trades occurred in 2013, when he shorted the Japanese yen (JPY). As the yen weakened significantly against other major currencies, Jones achieved a return on investment of over 20%.
Andy Krieger
In 1986, Andy Krieger joined Bankers Trust after leaving Salomon Brothers. Known for his aggressive trading style, Krieger’s firm raised his capital limit to $700 million—far above the standard $50 million limit.
During the 1987 Black Monday crash, Krieger shorted the New Zealand dollar (NZD), which he believed was particularly vulnerable to the financial crisis. Using 400:1 leverage, Krieger’s short position exceeded New Zealand’s entire money supply.
The trade netted $300 million for Bankers Trust, and Krieger himself earned over $3 million—equivalent to nearly double that amount in today’s market.
Conclusion
A key takeaway from these legendary traders is their emphasis on risk management. While they were willing to take on significant risks, their disciplined approach to preserving capital ensured their long-term success.
Through careful risk management, these traders stayed in the game for decades, achieving remarkable results in the forex market.