Bankroll management

Hey,

I have a rather practical question. How would you utilise for example 10 000 units of money for trading. What is the better practice? To deposit it at one broker and trade only there? Or to halve it, and deposit it into 2 brokers and do the very same trades for example in both of them?

How do you people do it?

Hi.
I split my money between 2 brokers, with sub accounts at each for different trading strategies. This, theoretically at least, should offer me some protection against a black swan event.
One drawback is that by splitting my account I am limiting my trade sizes, but I prefer feeling safer.

Sounds logical. Why put it into sub accounts though?

I do the same. Sub accounts are for diff strategies and ea’s. I use multiple brokers to protect my capital but I also don’t keep more than 20% of my capital in the account for another safety reason. If, for example, a spike takes out my position and blows thru my stop, i don’t want all my trading $ taken out with it. But for normal drawdown I add the funds and remove them after the trade is closed. It’s easy to do with brokers that have zero fee instant deposit and zero fee withdrawals.

I currently have 4 sub accounts at one broker. Lets say one of these had been trading EurChf when the Swiss decoupled, my maximum loss would have , theoretically, have been just that sub account, 25% of my entire stake at that broker.
Plenty of traders lost everything they had that day, accounts they spent years building

I agree with the previous posts that is more practical and safe to split your capital between several accounts or brokers. That way you will be sure that your money will be more protected in unfortunate market events like spikes, black swan, news with high negative impact, etc. As Carlos mentioned, many traders with big accounts lost everything during such negative market event so it would be better not to concentrate only on one account. In the beginning you can use two and multiply them at a later stage. This will help to build different strategies and see which one and with which broker will be in your best interest.