I’ve seen a few of you saying you use more than one broker to trade with. I’m just wondering why? Does it not get confusing what trades are placed with who?
Possible reasons include …
(i) Not wanting to have more funds on deposit in any individual account than the maximum covered by a government-backed refund guarantee in the event of the bankruptcy of a regulated broker;
(ii) Wanting to use spreadbetting for some types of trading, where it’s available, because all profits from spreadbetting are free from income tax and capital gains tax in some countries (an enormous “edge”!).
Those are two of my reasons, anyway - there’ll be others, too.
“Show me a trader with impeccable records and I’ll show you a good trader.”
You can comparison the chart between 2 brokers and you will aware which is better in trading service.
Simple risk management - one offers a better spread at one point, the other betters it later. And there are so many little things that can make the trading process smoother or a pain in the…
Honestly for a new comer there is no logical reason to do that, but as expert (higher investor) I believe just for safety purpose we can keep funds in different companies, as they often say never lay your eggs in one basket, but again new comers must not do this, it’s very tough especially with making strategies.
I have a second account that I use for live testing new systems using small position sizes. That way I can keep the testing fully separate from my normal live trading.