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.
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.
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.
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
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.
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