Having multiple trading accounts or use platforms from different forex brokers, you thought about it? Know that this is not ridiculous and be a customer of several forex brokers both can even be very intelligent and afford not to put all your eggs in one basket. We’ll discuss in this article, three reasons why you may need to practice forex trading forex brokers among several simultaneously.
Depending on the trading style
If the time is convenient for day trading and swing trading the same time, then it is better to have several trading accounts to not get tangled brushes and make mistakes that will be due to the confrontation of two trading styles. You’d better practice scalping or day trading with a forex broker A and implement its swing trading strategy to another distinct trading account with a forex broker B. This procedure allows to separate his actions, strategies and methods and many individual traders and professionals and carry nowadays being customers in several brokers simultaneously.
Depending on the risk profile of the trading strategy
Some traders will be shared in both optics speculator and seek a short-term profitability, as well as an optical investor wishing ensure profitability of their capital over the long term. In such a case, it will have two trading strategies, on their trading account dedicated to the short term they will not hesitate to risk 4%, 5% or even 10% of their capital per transaction to generate significant gains quickly, and on the second trading account that will be much more important in terms of capital they will adopt a healthier risk management with a much more reasonable risk profile risking eg 1% or 2% of their capital operation maximum. It is therefore understood by the utility for such trader to have several trading accounts in different forex brokers when the money management trading strategies are quite different.
Depending treaties markets
Practice forex trading on two or three trading platforms can also be effective if we speculate widely on just a few markets. For example if one is a follower of scalping, we generally like to speculate in forex brokers that offer low spread on the markets being treated. For example if we specialize in scalping the EUR / USD and the newspaper at one opens several positions in this market then have a trading account with eToro forex broker that offers a spread of 2 pips on this currency pair can be interesting. If in parallel with the EUR / USD is practiced scalping on the currency pair NZD / USD, then deposit a portion of their capital for scalping at FXCM makes sense since this broker offers one of the best spread of industry trading on the secondary market.