I really don’t believe it’s something that you have to worry about (obviously my personal opinion).
I don’t know if you read this post of mine (link below) (and sorry yes it IS one of those L-O-N-G winded posts of mine that everybody hates)??? In particular I’m referring the part about Brokers and Market Makers (you can ‘skip over’ the ‘Dale promoting himself and Deltastock’ parts if you like).
The point really is that a ‘proper’ broker would most CERTAINLY minimise (hedge or offset) their risk on trades of the size that you’re talking about is my point and be satisfied with THEIR profit on the spread and commissions ONLY.
Thanks buddy. =)
And yeah, definitely not worried about that right now, but it’s always something to worry about in the future, and I figure since it’s brought up now, might as well try to plan ahead and get some answers.
Yeah, I read some of that thread, just to see how many people bashed her at trying it out! Haha, but I’ll take a closer look at your posts. Thanks Dale.
If you are trading the one system / methodology on multiple accounts, wouldn’t you just do your analysis on one platform and then trade - enter your trades accordingly on the other accounts, without doing the analsys multiple times?
If the charts are in different timezones of cause the charts are going to be displayed differently and whether the charts are five days per week or six (the ones showing a Sunday session).
I was trying out different brokers - to see who I liked, trying their platfroms, that kind of thing.
So I’m consolidating my small tiny accounts into a larger one.
Maybe later I will have a secondary “back up” account, with different platform.
It might just be simpler to have few accounts than having too many to keep track of.
We dont want confusion!
That’s feasible i.e. you’ll find a lot of people on here will use the charting package of one broker and place orders at another. But in my experience very rarely are the price quotes IDENTICAL and depending on the number of hours difference between the different timezones e.g. between a broker in New York and and a broker in the EU even candlestick and chart patterns (signals) on the four hour and daily charts may be different let alone indicator readings so ‘which one is right’ (although this is mainly only true for spot FOREX or anything else that is traded 24/5). I just found that it was of no use to me at the time and as a matter of fact was counterproductive and sometimes resulted in losses because of forgetting to update orders at one broker or doubting the signals at another. That type of thing. And I only trade the four-hour and longer timeframes and couldn’t manage so how anybody could trade on the one-hour timeframes or shorter at three different brokers at the same time is beyond me (well beyond my own personal capabilities anyway)!!! LOL!!! I mean for one trade you have to do three different risk or management calculations (depending on the balance of each account unless they’re identical) and then there’s things like spreads that may differ. Nah. Too much work for me I’m afraid.
I guess the ‘safest’ one could be (if this is something of a concern for a trader) is obviously to ensure that the broker is regulated (by what I like to call ‘proper’ regulators like the FSA for example). A part of this regulation will ensure that client fund are segregated and covered by fidelity insurance up to a certain amount. One would then have to find out what that amount is and ensure that at any one time your exposure to that broker did not exceed such amount. But if the broker has a history and some decent reviews (and is regulated as noted above) it’s not something I personally would concern myself with. Then again: if I were making seven figures per annum in profit that would mean that my capital would have to be HUGE and, well, maybe I’d be ‘singing a different tune’!!! LOL!!! WHEN it happens: I’ll let you know how I feel!!! LOL!!!
I hate to plug a product, but I have been using the interceptor trading platform, it allows you to trade all your accounts with different brokers at once. The only problem is that they have a limited list of brokers. But their trading and charting capabilities on the mobile are the best i have seen yet. Easy way to allow yourself to hedge and compare the spread from different brokers.
I saw this on another thread about offshoring…panamalaw.org/index.html
Dale, i know your the spam police and all, but I was honestly giving my opinion. Im not new to forums, I know spam when I see it. I woulda left an affiliate id or some link if I was spamming…
Alright: my apologies. Heck: I WISH I was ‘the spam police’ though. Geez: I’d make a fortune out of this site alone.
But alright and on YOUR subject (and the subject of the thread): I personally don’t see the point of trading with several different brokers, comparing quotes at several different brokers (how MUCH difference can there BE between prices), that type of thing. Take it from somebody who initially went OUT OF THEIR WAY to complicate this business: it’s not necessary and is only a hinderence in my opinion. The only reason I could possibly think of for one to have different accounts at different brokers is if your ‘main’ broker doesn’t offer instruments (Options for example) that you want to trade in addition to, say, spot FOREX. Something like that. But to have different accounts at different brokers to trade the same instruments??? Nah. I cannot see the point. And that begs a question: if you’re trading, say, EUR/USD at three different brokers, at the same time, and risking only 2% of each account on each trade, are you REALLY risking 2% or 6% on each trade??? As for hedging: unless you REALLY know what you’re doing all hedging accomplishes for a new trader is give them a false sense of security is all. As a matter of fact: the word ‘hedging’ in the sense that it’s used in spot FOREX trading should be ‘banned’ because it gives REAL ‘hedging’ a bad name. There’s only ONE ‘system’ (if you can call it that) that I’ve ever come across where ‘hedging’ (in the sense that it’s used in spot FOREX trading) COULD work i.e. it’s a kind of ‘arbitrage’ ‘system’ that attempts to take advantage of the difference in prices due to data feeds being ‘out of whack’ between different brokers but, and from what I gather, the opportunities are VERY few and far between nowadays. As a matter of fact: I THINK it was in an Investopedia article that I’ve ‘favorited’ and I’ll post a link here (if I can find it). But other than that??? I really dont’ see the point. BUT AGAIN: THAT’S JUST ME!!!