There are number of reasons for traders opening different accounts with different brokers, they might not want to give all their capital to one broker or may be they are dealing with different securities and the respective brokers are good for one kind of asset. However, I've seen that many brokers let traders open different accounts under the same name. What is the purpose of opening multiple accounts with the same broker.
Why do some traders create multiple accounts with the same broker?
- Thread starter kathleenaustin
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I can think of some reasons for that:
1. To separate trading strategies.
2. To separate funds - e.g., trader's own funds, trader's borrowed funds (bad idea!).
3. Different account type with different conditions or instruments).
1. To separate trading strategies.
2. To separate funds - e.g., trader's own funds, trader's borrowed funds (bad idea!).
3. Different account type with different conditions or instruments).
They can also attempt to make profit from no-deposit bonus accounts or demo contest. But in the long run it is waste of time.
I use one 2 for forex (one manual, one EA), one for stocks and one for crypto!
It is true that different brokers offer different benefits. Thus, many traders have multiple accounts with different brokers. Some traders use their different strategies with different brokers according to their offers such as spread, commission, withdrawal timing etc. If a trader opens multiple account with the same broker, it may be because of different benefits different types of accounts from the same broker offered as well. I personally do not have any multiple accounts with the same broker.
Sometimes one broker may be better for trading a certain asset than another. Or it may be that your favorite broker for trading forex just doesn't have a good crypto selection, so you open a second account elsewhere for that. I think some people also like to have money in different places in case anything were to go wrong.
Yes. It's also something you should do because it makes it easy to separate different trading methods, as well as different funds if they come from different sources.
I doubt you'll find a single competent broker who doesn't allow it as standard.
I doubt you'll find a single competent broker who doesn't allow it as standard.
They may have one account for swing trading, one for intra-day trading.
One high risk, one standard risk etc.
As has been said its mainly to test different strategies but also to separate operational strategies you can't swing and scalp on the same account that could cause a margin call unintentionally. Its about having strategies and ideas in their own eco system
It’s quite normal, maybe they are using multiple accounts because of using manifold strategies & style on each account! But in my live trading I use only one single trading account, since I have no multiple plans here! Long term trading is my only one choice & Price Action trading is my single direction!
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