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Various Reasons why ppl use a lot of brokers.

Aug 06, 2020 at 10:41
1,987 Views
40 Replies
Member Since Apr 13, 2018   35 posts
Aug 06, 2020 at 10:41 (edited Aug 06, 2020 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.
Member Since Apr 13, 2018   35 posts
Aug 12, 2020 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.
Member Since Jul 20, 2020   232 posts
Aug 14, 2020 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.
Member Since May 08, 2020   4 posts
Aug 25, 2020 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.
Member Since Feb 22, 2011   4862 posts
Aug 25, 2020 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
Member Since Aug 05, 2019   50 posts
Aug 27, 2020 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.
Member Since May 13, 2020   128 posts
Aug 27, 2020 at 14:17
Somehow I did not ask such a question, but it was interesting.
Member Since Apr 13, 2018   35 posts
Aug 27, 2020 at 20:25
jaredtaylor posted:
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.

@jaredtaylor may i ask more about it.???
Its easy to switch accounts with just two clicks, but when and why you switch your accounts between brokers?
I understand low spread and commissions on turnkey will be amazing,but what do you find so profitable during higher volatility that you may switch to LMFX.? and whats more profitable that you'll again switch to tradersway and come back to turnkey for lower spreads.

i hope you got my point when i emphasized while letting everyone know that using different brokers in not a way to diversify risk. dont know how come traders have faith in such statements. its such a basic fact. thought everyone on this platform had some basic knowledge about trading.
Indicators are so deceiving, always lagging. Trend lines & Calendars are the best.
Member Since Apr 13, 2018   35 posts
Aug 27, 2020 at 20:26
Stonesong posted:
Somehow I did not ask such a question, but it was interesting.

@Stonesong
😁😁😁
Indicators are so deceiving, always lagging. Trend lines & Calendars are the best.
Member Since Oct 01, 2019   49 posts
Aug 27, 2020 at 22:17
I think the idea's ok if you're unsure about which broker to go with. And I'm definitely hearing the points about diversifying. But I think you should really go all in with a broker you trust. Maybe it's different for swing traders. As a scalper. I'd be running ragged with 2 different brokers, data sets, and less growth between both.
Member Since Apr 13, 2018   35 posts
Aug 28, 2020 at 07:24
@Curtid33 i am a swing trader and its the same for me. 5-6 years with same broker, XM.
Its always the same for all, only the scale and strategy of trade changes whose results are independent of brokers if minor spread diff is ignored.
Indicators are so deceiving, always lagging. Trend lines & Calendars are the best.
Member Since Jul 27, 2020   102 posts
Sep 03, 2020 at 06:26
It always helps to research what kind of broker are you looking for and which broker would you sign up with.
Member Since Apr 13, 2018   35 posts
Sep 06, 2020 at 15:51
@Shelby10 @cardigan first you compare your broker then you use em. You compare by visiting their sites, opening demo accounts with em, but not at all by trading live with all brokers accounts at once and that's what this thread is about.

Indicators are so deceiving, always lagging. Trend lines & Calendars are the best.
Member Since Jul 23, 2020   869 posts
Sep 25, 2020 at 17:10
Can anyone tell about this PPL concept? I never heard this kind of term.
Member Since Sep 24, 2020   17 posts
Sep 26, 2020 at 07:03
LyudmilLukanov posted:
Can anyone tell about this PPL concept? I never heard this kind of term.
As i think ppl means people. so question is why people use a lot of brokers. or why they changd them so fast.
Member Since Sep 24, 2020   17 posts
Sep 26, 2020 at 07:05
As i see everyone chose what the best for him/her. and when person find his 'ideal' broker he stays with one. it depends on broker conditins.
Member Since Feb 20, 2019   15 posts
Sep 29, 2020 at 04:17
Another reason could be the lack of scalability if you are scalping.

Some brokers are great for execution for the first 3 lots for examples, then afterward it may affect performances.
Member Since Apr 13, 2018   35 posts
Sep 29, 2020 at 08:50
@FLCFX wow! thats something i've never heard of.

can u name such brokers and explain this problem in some detail.
Indicators are so deceiving, always lagging. Trend lines & Calendars are the best.
Member Since Jul 20, 2019   372 posts
Sep 29, 2020 at 09:23
I actually use 4 different brokers. Why? Because I like to have my money not only on one broker. The same goes for banking accounts. I also have more than just 1 banking account. It's more safe for your own money; you never know what will happen, especially during a crisis.
patience is the key
Member Since Feb 20, 2019   15 posts
Sep 30, 2020 at 01:46
saurabhsuman003 posted:
@FLCFX wow! thats something i've never heard of.

can u name such brokers and explain this problem in some detail.

I'm referring to using scalping... if you are only generating 1-3 pips per trade, speed of execution might not be fast enough and may cause negative slippage.. In that sense, it may not be scalable
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