Are two accounts better than 1? | Forex Factory

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Are two accounts better than 1?

  • #1
  • First Post: Sep 9, 2017 8:43am Sep 9, 2017 8:43am
I have one account running with Axi Trader and I'm very happy with it,do you guys suggest keeping 2 accounts? someone suggested me to have 2 accounts with separate borkers.

What other broker do you suggest ? Is weltrade good ?
  • #2
  • Sep 11, 2017 1:53pm Sep 11, 2017 1:53pm
Quoting T4Trade
I have one account running with Axi Trader and I'm very happy with it,do you guys suggest keeping 2 accounts? someone suggested me to have 2 accounts with separate borkers. What other broker do you suggest ? Is weltrade good ?
What kind of deposit are you trading?
If you are trading small it really doesn't matter.
If you are trading big there are some other solutions to get some safety for your funds.

Small meaning below 100K.
  • #3
  • Sep 11, 2017 5:16pm Sep 11, 2017 5:16pm
Quoting Dkam
{quote} What kind of deposit are you trading? If you are trading small it really doesn't matter. If you are trading big there are some other solutions to get some safety for your funds. Small meaning below 100K.
I have small accounts,thanks.
  • #4
  • Sep 12, 2017 2:23am Sep 12, 2017 2:23am
Multiple accounts are better as you have more money. Just to diversify risk on your broker side.
Like an all eggs in a basket kinda thing.
  • #5
  • Sep 12, 2017 3:15am Sep 12, 2017 3:15am
It really depends, IMHO, on what you are interested in trading. If you are not so diversified, and you are keeping separate accounts with brokers who focus on similar assets, then I'm not sure what is really gained by it. On the other hand, if one broker has excellent conditions and options in Forex, while another one focuses more on, say, commodities, then two accounts could be profitable.
  • #6
  • Sep 12, 2017 3:57am Sep 12, 2017 3:57am
Quoting JeremyV
Multiple accounts are better as you have more money. Just to diversify risk on your broker side. Like an all eggs in a basket kinda thing.
Not true, it slows you down.
There are other options to protect your money than spreading it over different brokers.
However not one broker will offer it for deposits below 100K.

Just stay with reliable brokers who also use solid banks for clients deposits.
  • #7
  • Sep 12, 2017 4:04am Sep 12, 2017 4:04am
both options have pros and cons,if we want to spread money then more accounts are better ,but if working on small capital ,it is better to have one account,so your mind is not diverted on separate accounts IMHO
  • #8
  • Sep 12, 2017 4:20am Sep 12, 2017 4:20am
It would only make sense in the example Beldavash used.
Using 2 different brokers to trade the same instruments is just plain stupid.

Different brokers for different financial markets of course can make sense.
  • #9
  • Sep 13, 2017 6:31am Sep 13, 2017 6:31am
Quoting Dkam
{quote} Not true, it slows you down. There are other options to protect your money than spreading it over different brokers. However not one broker will offer it for deposits below 100K. Just stay with reliable brokers who also use solid banks for clients deposits.

How exactly does it slow me down?
I can take the same trades or spread my trades over multiple accounts. It doesn't matter.
What does matter are the limits regarding the amount of your money regulators protect and in case something happens to or with one of your broker.
Then at least you have a backup. I heard many stories where brokers had problems when customers wanted to withdraw money.

As I said before, this doesn't apply for your small 10k account. You CAN do it with that as well, but it really gets its purpose when you have 30-50k and above.
  • #10
  • Sep 13, 2017 7:38am Sep 13, 2017 7:38am
Quoting JeremyV
{quote} How exactly does it slow me down? I can take the same trades or spread my trades over multiple accounts. It doesn't matter. What does matter are the limits regarding the amount of your money regulators protect and in case something happens to or with one of your broker. Then at least you have a backup. I heard many stories where brokers had problems when customers wanted to withdraw money. As I said before, this doesn't apply for your small 10k account. You CAN do it with that as well, but it really gets its purpose when you have 30-50k...
It only has purpose for accounts above 100K, and when trading with accounts above 100K there are better and more efficient way's to protect your deposit.
Slowing down, you have to place either multiple trades on different platforms/accounts, even if you get it automated you will get different fills because of different ping/delay, for a scalping system this can cause some damage to your profit levels.

Anyway, this discussion is getting pointless here.
If one feels he needs to spread his small deposit in even smaller accounts than he has to do so.
The question was are 2 accounts better then one, the answer is no.

If one personally feels better to do so, fine.
  • #11
  • Sep 13, 2017 7:54am Sep 13, 2017 7:54am
Quoting JeremyV
{quote} How exactly does it slow me down? I can take the same trades or spread my trades over multiple accounts. It doesn't matter. What does matter are the limits regarding the amount of your money regulators protect and in case something happens to or with one of your broker. Then at least you have a backup. I heard many stories where brokers had problems when customers wanted to withdraw money. As I said before, this doesn't apply for your small 10k account. You CAN do it with that as well, but it really gets its purpose when you have 30-50k...
If you are afraid of your broker going in to default you can pick a broker with FDIC, SIPC or FCSC protection.
  • #12
  • Sep 14, 2017 9:59am Sep 14, 2017 9:59am
For a small investor would be best to concentrate on one account, If the reason for the multiple accounts diversification is that you do not trust your broker enough, then just change it for reputable STP broker with good trading conditions and investor’s safety of fund policy.
  • #13
  • Sep 15, 2017 6:20am Sep 15, 2017 6:20am
Quoting Dkam
The question was are 2 accounts better then one, the answer is no. If one personally feels better to do so, fine.

I wouldn't say "no".
It can be a nice way of keeping track of separate strategies or to test a new one out when you go live with it.
Mixing them might "slow you down" as well.
Doing the separation trade by trade manually and on paper/excel. By having it on a separate one you instantly see how a strategy is working out.

It doesn't have to be a full or equally sized account for that. You can have a main account and a micro account for that sole purpose.

So the answer to the question is "it depends on you needs".
  • #14
  • Sep 16, 2017 5:31am Sep 16, 2017 5:31am
exactly that was in my mind to use one account for long term trades and another for intraday.i have read that you do long term trading ? how is it going? I want to keep it for week or weeks.
  • #15
  • Sep 29, 2017 5:12pm Sep 29, 2017 5:12pm
Two accounts might be good if each is opened with different broker in order to reduce the risk factor and if one broker turns scam we still have funds with another one.
  • #16
  • Sep 30, 2017 10:11pm Sep 30, 2017 10:11pm
It truly depends, on what you are keen on trading. In the event that you are not all that differentiated, and you are keeping separate records with brokers who concentrate on comparative resources, at that point I don't know what is truly picked up by it. Then again, in the event that one broker has brilliant conditions and choices in Forex, while another spotlights more on, say, items, at that point two records could be gainful. Different records are better as you have more cash. Just to expand chance on your broker side.
  • #17
  • Apr 28, 2019 9:57pm Apr 28, 2019 9:57pm
Opening accounts depends on the purposes you want to use them. I have one account only for trading daily charts so it has 27 charts on it; all the major pairs except USDCHF because of the correlation with EURUSD. My other account is to trade volatile pairs during the day.
  • #18
  • Apr 28, 2019 10:16pm Apr 28, 2019 10:16pm
Quoting jollypk
Two accounts might be good if each is opened with different broker in order to reduce the risk factor and if one broker turns scam we still have funds with another one.
I also have two accounts but both accounts are with regulated brokers in countries that have insurance cover in case the broker goes bankrupt for any reason. For information regulated brokers in most countries don't offer any protection to investors. This is the case for Australia, New Zealand, USA, Japan and most countries in the EU except Cyprus that offers a protection of EUR 20,000, Greece EUR 30,000 and the UK GBP 50,000. If you really need account protection you have to get a regulated Canadian broker since the account protection is CAD 1,000,000 (USD 746,000). There is even a forex broker that offers CAD 10,000,000 (USD 7,460,000). See picture for coverage but I cannot name it since I'm not here to promote any broker.
Attached Image (click to enlarge)
Click to Enlarge Name: CA Broker.jpg Size: 75 KB
  • #19
  • Apr 28, 2019 11:32pm Apr 28, 2019 11:32pm
Having multiple accounts is better than having just an account. Never put an egg in one basket. I for once learned this from the Financial Recession in 2005 - 2006 and the SNB debacle which causes me to lose well over tens of thousands.

Nonetheless, here's the trick. Have your main account treated as a reserve fund whereas you'll have separate mini accounts to hold funds and generate profits to build your reserve fund.
  • #20
  • May 6, 2019 12:23pm May 6, 2019 12:23pm
Regular traders require multiple accounts.
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