Trading with several brokers

bigdolly

Sergeant Major
Messages
868
but they promise better spreads for bigger accounts, no?
Nope, I use Pro account from Tickmill and Raw spreads from Hotforex. Min deposit is quite low and conditions are the same till you upgrade to VIP accounts. To use their VIP accounts where you can discuss spreads you have to deposit at least 25K. Still has some way to reach this requirement.
 

fxtrendtrader

Private, 1st Class
Messages
36
Nope, I use Pro account from Tickmill and Raw spreads from Hotforex. Min deposit is quite low and conditions are the same till you upgrade to VIP accounts. To use their VIP accounts where you can discuss spreads you have to deposit at least 25K. Still has some way to reach this requirement.
Thats what I mean, if you got 25k so can get better spreads, but if you split that up, you will trade with higher spreads...

However, I don't have 25k for now...
 
Messages
6
To my mind, trading with several brokers is a great approach to minimize non-market risk. As it was mentioned before, it is almost impossible that several brokers would fail simultaneously, so at any scenario you will lose only part of your trading capital. By the way, it doesn`t mean that you have to switch from one platform to another and place the same orders – nowadays there are many tools allowing you to automate placing orders by sharing them with multiple accounts. Such tools could even calculate position size for each account independently based on the account size and risk profile.
By the way, the all trades should be balanced well and all accounts should be used in similar proportion otherwise it would reduce the effectiveness of this approach.
The most important advantage of such kind of trading is that it allows you to protect your funds in case if one of the brokers would fail to perform its obligations (it is quite common situation, especially for unregulated offshore brokers). In this case, you will lose only a part of your entire trading capital and still will be able to continue trading.
 

fxtrendtrader

Private, 1st Class
Messages
36
To my mind, trading with several brokers is a great approach to minimize non-market risk. As it was mentioned before, it is almost impossible that several brokers would fail simultaneously, so at any scenario you will lose only part of your trading capital. By the way, it doesn`t mean that you have to switch from one platform to another and place the same orders – nowadays there are many tools allowing you to automate placing orders by sharing them with multiple accounts. Such tools could even calculate position size for each account independently based on the account size and risk profile.
By the way, the all trades should be balanced well and all accounts should be used in similar proportion otherwise it would reduce the effectiveness of this approach.
The most important advantage of such kind of trading is that it allows you to protect your funds in case if one of the brokers would fail to perform its obligations (it is quite common situation, especially for unregulated offshore brokers). In this case, you will lose only a part of your entire trading capital and still will be able to continue trading.
Do you use such tools?
 

fxoday

Corporal
Messages
79
Indeed trading with several broker is one way to diversify capital, like as many people said, don`t put all egg in one basket, with trading several broker, ideally if one company in problem and impact to trader, hence still there is another company that still alive and not have in problem, but how to choose broker also need to become one consideration although you trade in several brokers, will be grateful if all company working fine
 

ForexViking

Private, 1st Class
Messages
32
I trade with a couple of brokers, i go by how good they are with crypto, fiat and stocks other assets and use them on their strengths. Mainly trading fiat and crypto at the mo so can simplify how many i use.
 

fxtrendtrader

Private, 1st Class
Messages
36
Indeed trading with several broker is one way to diversify capital, like as many people said, don`t put all egg in one basket, with trading several broker, ideally if one company in problem and impact to trader, hence still there is another company that still alive and not have in problem, but how to choose broker also need to become one consideration although you trade in several brokers, will be grateful if all company working fine
Are you from FxOpen?
 
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