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Various Reasons why ppl use a lot of brokers.
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saurabhsuman003

Member Since Apr 13, 2018  28 posts saurabhsuman003 (saurabhsuman003) Aug 06 at 10:41 (edited Aug 06 at 10:44 )
I started to learn trading via etoro. In no time I learnt about mt5 which was great. Tried 3-4 brokers with mt5 platform service and finally settled with XM.

But i have seen ppl having more than 10 broker accounts signed into their platform and they say something like one is for scalping and others are for various market conditions.

I didn't get it. I think the hassle of maintaining more than one broker is worth the few pips of lesser profit. I have never had a second thought of looking for another broker.

So is there really some strong point as to why ppl do it or is it just another novice hoax.

This came to me when i saw someone share their screenshot on mql5 forum with more than 10 broker accounts signed in and i was so puzzled at it.

Indicators are so deceiving, always lagging. Trend lines & Calendars are the best.
saurabhsuman003

Member Since Apr 13, 2018  28 posts saurabhsuman003 (saurabhsuman003) Aug 12 at 08:48
Since no one seemed to know the answer, i found it myself.

The reason to this is for EA testing. EA results vary from broker to broker.

An EA's performance will vary across the live feeds of different brokers
In general, EA's working purely on support & resistance will work with the least variation across brokers
Breakout EA's transfer quite well, especially if on H1 and above timeframe
Indicator-based EA's vary the most, from great profit to great loss between brokers
Also an EA entering mid-bar will show more variation than one entering on close of a bar
The same general points apply to some extent when moving from a demo account to a live account of the same broker

So...to achieve the goal of making an ideal EA, programmers run their EA on numerous broker's data such that more than 20 broker's accounts are common.

Indicators are so deceiving, always lagging. Trend lines & Calendars are the best.
leecopp

Member Since Jun 23, 2020  3 posts leecopp Aug 14 at 05:40
People might have different reasons, but I am with you on this one. Having more than 2 brokers can get cumbersome. I prefer trading with just Coinexx and Fidelity. I like Coinexx for the leverage and quick order executions. Fidelity has good market scanning tools. All in all, they offer all that one would want out of a broker.

Freddraven

Member Since Jun 29, 2020  5 posts Freddraven Aug 14 at 05:43
I am new to trading, so I’m experimenting with many different brokers. Turnkey forex, etoro, IBKR, Fidelity and Robinhood. What I’m realising is that pretty much all the good brokers like Turnkey forex and Robinhood offer similar good services. They are low commission brokers, with easy deposit and withdrawal procedures. Their customer service is also worth mentioning, they are there to help pretty much all the time.

traderroni

Member Since Oct 05, 2019  29 posts traderroni Aug 14 at 07:32
There's nothing wrong in using multiple brokers. Since one broker can't be perfect in each and everything its wise to split funds between a few brokers based on each broker's good points.

EbonyJones

Member Since Jul 20, 2020  107 posts EbonyJones Aug 14 at 17:33
I think using muiltiple broker isa good thing. Because you can compare one with another. I think its not a bad at all.

Georg414

Member Since May 08, 2020  4 posts Georg414 Aug 25 at 11:06
One of the significant reason to use multiple broker is that you divide your risk associated to the capital with a particular broker. Along with this you compare the services of the certain brokers.

togr

Member Since Feb 22, 2011  4823 posts vontogr (togr) Aug 25 at 11:57
saurabhsuman003 posted:
I started to learn trading via etoro. In no time I learnt about mt5 which was great. Tried 3-4 brokers with mt5 platform service and finally settled with XM.

But i have seen ppl having more than 10 broker accounts signed into their platform and they say something like one is for scalping and others are for various market conditions.

I didn't get it. I think the hassle of maintaining more than one broker is worth the few pips of lesser profit. I have never had a second thought of looking for another broker.

So is there really some strong point as to why ppl do it or is it just another novice hoax.

This came to me when i saw someone share their screenshot on mql5 forum with more than 10 broker accounts signed in and i was so puzzled at it.


It is always good to have more brokers
Because
#1 you got more profit due to better spreads and better execution
#2 you diversify your risk
#3 you avoid situation when your broker refuses withdrawal or declare bankrupcy

saurabhsuman003

Member Since Apr 13, 2018  28 posts saurabhsuman003 (saurabhsuman003) Aug 25 at 13:03 (edited Aug 25 at 13:03 )
@Freddraven @traderroni @EbonyJones @Georg414 @togr

How is using diff brokers related to diversifying...? You diversify by investing in range of assets in different markets, may be indexes, forex, crypto, stocks real estates etc. you'r broker may not be providing all of these so u'll take on a new one and have two. But i was talking about10-20 and more brokers. which is not at all for diversification.

@Freddraven customer service and low commission ...? even my broker is ulta low with that. it even provides local help even when it is european.

@traderroni why will i split my funds into diff brokers just for their good points..? deposit and withdraws have more commission on bank side and they dont even make a discount if ur with a large amount. they just ask more. so if u r doing it then u surely need to be rectified.

@EbonyJones you compare ur broker for once, may be for one day may be for whole day. the u either stay with old one or move to new one. u don't stay with 10's and 20's of them forever.

@Georg414 you have confused broker with assets.
you can't diversify by using diff broker for same asset. it's simple maths.

@togr more brokers=more profit?? better spread and better execution??
It is infact more cumbersome and lagging and less profit.
 secondly you diversify with assets not brokers.
lastly all these brokers supply their data on weekly basis which will prevent their bankruptcy, if ever it will be a slow gradual process evident since years before the event,nothing such happens in a day.
moreover their organisations they are registered with are there to prevent any such event from happening.
Maybe the the company whose stock you own might be declared bankrupt overnight. in which case u'll be ruined no matter how many broker you were trading with.


finally check the 2nd comment. it is the only evident reason why ppl use so many account.

Indicators are so deceiving, always lagging. Trend lines & Calendars are the best.
jaredtaylor

Member Since Aug 05, 2019  45 posts jaredtaylor Aug 27 at 11:55
EbonyJones posted:
I think using muiltiple broker isa good thing. Because you can compare one with another. I think its not a bad at all.


I myself am using multiple brokers, have turnkey forex for low spreads and commissions, LMFX for high volatility and have kept tradersway just in case, and haven't faced any issue with managing.

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