Is multiple brokers legal?

Is it legal to use more than one broker? I’m in the US and shorting the EUR/USD with an American broker but it’s only 50:1 leverage.

I have another account that’s overseas with 1000:1 and 3000:1 leverage and I want to gradually increase my short position by selling on the spikes.

Is it legal as long as it’s the same position on both accounts so that they can’t say I’m hedging?

I’m been consistently making 30+ pip winning trades on the EUR/USD with a few 200 pip trades in other currencies with a current 1:6 risk reward ratio, I just want to increase my profits.

Of course it’s legal, and many traders do just that – especially traders with large account balances who want to spread their “broker risk” among two or more brokers.

Hedging is not an issue here.

Hedging is prohibited only in the U.S. within a single account. That is, you can’t be both long and short the same currency pair in the same U.S. account.

You can be long in one U.S. account, and short the same pair in another account with the same U.S. broker, with another U.S. broker, or with an offshore broker, without violating any regulations.

Generally, what you do in one account has no bearing on what you do in another account, except for attempts at broker arbitrage (which is not the issue here).

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First of all it it would be extremeily difficult to find that you use multiple accounts as there is no centralized market, single regulating authority or even direct market execution. When you trade with one of the brokers, in fact you trade with this broker, so how could some know about it.
Another point is that this is absolutely legal, so you can create many accounts without any doubts. There are lot of traders using the system consisting of several accounts to reduce the non-market risks related to the brokers. At the same time, they use one strategy for all accounts and special software like Forex Copier to execute the same orders on each account in accordance with the size of the appropriate account. In your case, if you are going to use multiple account for different trades, you would need to switch between several platforms, so keep in mind that it would require more time and also the additional resources of your PC to run several platforms at once.

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Thanks Clint for that perfect explanation.

Thanks Anderson, I’m going to give forex copier a look. I probably won’t need it yet with just two brokers. My margin is maxed out on my US broker and I’ll just let that one accumulate a bit, but due to both of your replies, I think I’m going to have to spread my broker related risk.

I’m not worried about my US broker (Oanda) as they honored all their customers’ CHF profits in 2015, and I more than quadrupled my account when that happened. But these offshore high-leverage brokers are definitely risky.

Yes, it’s legal.
I have 3 brokers. :star_struck:

Yes, you can absolutely have accounts with multiple brokers. There is nothing illegal in that. Not only this, but you can have multiple accounts with the same broker also. Just be careful of the orders you put with each of them.

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As long as I know, it is absolutely legal to have multiple brokers. They are not going to stop you from doing this. You are entitled to do that on your own but just make sure to remember the potential risk and order types as you are doing it in different platform. @J_C_Anderson explained that perfectly.

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Yes its Legal to use more than one broker. Because you are legally register with multiple regulated Forex Broker. Just need to checkout for which country you are trading should be offered by broker.

Yes, in fact many traders do that, split their account between multiple brokers.

Yes, is is definitely legal. Go ahead, you got a right to do that since you’re diversifying the risk.