Various Reasons why ppl use a lot of brokers.

FLCFX posted:

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

Lots of brokers are not even allowing scalping, arbitrage and other extreme 'short term profit makers'.

Using various brokers can help a trader to make his decisions perfectly. It helps a trader to research the broker and choose the best one from all of them.

@marco_mmbiz broker and bank accounts are different things my friend. We use more than one bank account for security purposes, ease of use, to get more than one debit and credit cards, to have different joint accounts with persons of choice and various reasons. It's like having more than one set of clothes. While you stick to one or two brokers at max cause using more than one only increases hassles, those who know trading will be successful in any platform. You can't keep on switching accounts or use 3-4 computers and simultaneously trade in all of em. Since you brought up scalping, none can possess all styles of trading Viz day trading, swing trading , scalping etc etc, so if you are a scalper get a suitable broker and stick with it. And at the times of crisis your money will be gone irrespective of your broker. To prepare for that you can only stock your bucks under your bed.
Brokers are registered and their trades are reported every Tuesday. Get to the details of CFTC data if you wish. Whichever broker u use, contributes to that data. So none of them are gonna fall down alone.

GeorgeBischof posted:
Using various brokers can help a trader to make his decisions perfectly. It helps a trader to research the broker and choose the best one from all of them.

@GeorgeBischof so what happens when you choose the best one from all of them ..????? You stick to em right.?????
The thread was about why don't people finally stick to one.??? So your statement contributed nothing my friend. You might wanna think again about the motion.

@marco_mmbiz when you say few brokers aren't showing'extreme short term profit makers' you don't get why they do that.

We use leverage, our broker pays on our part at the exchange to get Ur the required amount of foreign exchange. Ofc this money is insured because the broker won't allow us to trade beyond our margin capacity. But to let us take trade or broker needed to pay the difference amount at the first hand.

Your so called 'extreme short term profit makers' run on ultra high leverage.
So if your broker is a small firm and is not having enough capital the. It can't help you take such trades by paying on your behalf.

FLCFX posted:

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

I think it is too low even for scalper. It is also hard to make possible in volatile market.

@SofieAndreasen yeah you're right.
these are just noobies,not really traders.
Mql5 has better quality members.

People use various broker mainly when they can't determine which conditions suit them best. No doubts, that today there are lots of brokers on the market and it's kinda tough to choose a proper broker from this amount of such ones. You start to think that you will never be able to find a good broker, when you change the broker, however it's really okay. Maybe, it's pretty bad that traders spend their time on searching for a broker, however they have to understand that if you want to feel convenient, then you shouldn't regret your time. Those traders who don't care about conditions, they can remain with one broker for a very long time.

I believe most of the traders do that as its always a good move to diversify your funds and not stick to the single broker.

Traders may require different conditions for different strategies and it is not possible for one broker to satisfy all those needs. For instance for day trading I need lower spreads and faster execution and for that I’m using turnkeyforex, but for someone looking at lower swap rates for position trading some other broker might be more suitable.

I guess it is different tools for different jobs but if you can narrow it down to as few a brokers as you can I would think this would be easier to track.

To determine which one is better....

Treeny posted:
To determine which one is better....

Agree and some are good for scalping others for swing trading. Lots of advantages with being open to new brokers and opportunities

I use both two brokers one regulated the other offshore as offshore allows me access to Crypto markets 24/7 with higher leverage

In my point of view the advantage of using multiple brokers is that they charge the regular payments which are quite lower. The other advantage is that best brokers offer detailed fundamental research on various forex pairs and help traders in making the profits.

I get that there can be benefits but I've personally always just preferred to use one. I make sure they have the best possible conditions based off my needs and just stick with it instead of worrying about multiple logins and keeping track of multiple accounts.

Using different brokers is confusing for most trader. Maybe if you are a pro with large positions then multiple accounts make sense but for most trader using just 1 broker is better

I’m using coinexx for forex trading and etoro for crypto trading.

Ya OP, that is factually true. There are so many brokers giving various services to clients that they can pick and choose which one works best for them. For me, the reason why I picked fxview is because of their low-cost commission, which is just $2/RT. And pepperstone for cTrader trading platform.