Should I Use Several Brokers? Pros and Cons with Having Multiple Accounts!
Using Several Brokers – The Economical Advantages you have been Neglecting!
Whether you already have a broker or about to choose, you should consider some advantages with having accounts at several different brokers. Different perks, higher payouts, exotic assets and unique tools are just a few of the advantages you can get access to by having more than one broker. There are also two very important economical advantages that you probably haven’t thought of, but more about that later. Of course there may be some minor drawbacks with having multiple brokers too – but the main question to answer is: do the pros weigh more than the cons?
Unique Features – A Multifaceted Trader is More Successful
The most obvious reason for using multiple brokers is that one broker’s platform can be totally different from the next one. For example, with broker A you can close your positions early, prolong your expiry and replicate your position while broker B allows you to choose end of year expiries and keeps the trading hours open for a longer period. Truth is, every broker offers their own unique tools and the trader that has access to most tools has an extra advantage over the rest! The tools are not the only good reason for having more than one, you can get a huge assets list. One broker may focus on forex, another on commodities. Features like VIP accounts are also something that distinguish one broker from the other. Higher returns, bonuses, personal training, demo accounts, faster and free withdrawals just to name a few. It’s easy to gain access to all of the above by making a deposit with two brokers instead of just one.
Already Profitable? Stay under the Radar!
Trading one asset and expiry could take you far but if you get to good you may attract unwanted attention. If you are good, or on the way to real success, you might want to stay under the radar by splitting your deposit into more than one broker. Most big and regulated brokers have no issues with paying out but you still should take precautions against “scaring” the broker. I mean, you don’t want to make them think that they will soon go bankrupt because you are so successful… If your account is getting too big, withdraw and create a second account with another broker and make smaller trades in both. After all, you are already profitable so why not take the houses money and run?
Economical Advantages – Profit off of your Profits!
Which is your countries currency? EUR, USD, Yen, GBP, SEK or perhaps something else? Good news, it doesn’t matter! No matter which currency your country is using you can use my method to make even more profits off of your profits. Okay, I don’t mean to stall but before I tell you the “secret”, you have to understand a couple of facts so keep reading. As a trader you know that a currency is constantly gaining or losing value, today’s price is not going to be the same as tomorrow’s price! If the dollar is strong today it might not be as strong the next day, week or month. This is something we can take advantage of, regardless of your country of residence. Did you figure it out? Yes, by having two accounts in different currencies you will always be a beneficiary whenever any of the deposited currencies increase in value. Simply put, the idea is to create an account in, for example, Euro and USD. Trade in both accounts to stay under the radar and then withdraw the Euro account when the Euro is strong and vice versa when the dollar gains strength.
*Find out how to create a buffer zone and when to make withdrawals!
Your Binary Options Account – Could it be Your Personal Piggy Bank?
Another economical advantage with having multiple brokers is the return percentage. Choose a broker that pays high returns on short term options and then another that pays highly for long term options and you will always get the maximum possible return on all kinds of positions – short or long term!
Cons & Difficulties with Using Many Brokers
What comes to my mind first is the fact that finding one reliable broker is a challenge on its own, not to mention finding a second one. You will have to do your research to find two reliable brokers that fit your needs in terms of regulation, minimum deposits and withdrawals. Once you have found your favorite brokers and separated your investment into two accounts and currencies, money management becomes your next issue. A bigger account can take bigger hits and hence, allow a better money management. Small accounts, even two small accounts, require stricter money management and a lot of self control. If you are not good at managing your first account then I advise against opening a second account until you figure it out. The third drawback can cause a bit of a dilemma… When you split your investment it might not add up to the required deposit amount for getting the VIP benefits you could’ve gotten with a single deposit.
Conclusion – Maximize your Profits!
As a profitable trader, I don’t care about small price differences from platform to platform. What I care about is to have the best tools, the highest payouts, a good customer service and a broker that pays me! There are definitely some advantages to having more than one account including better tools, better asset lists, better expiry choices, higher payouts and an extra cushion of safety. Finally, to answer my initial question, I absolutely think that the advantages weigh a lot more than the disadvantages but may be best suited to traders with larger accounts. My conclusion, having multiple brokers in different currencies is a must for the pro trader!