Why Have Spread Betting Multiple Accounts?
When it comes to choosing a spread betting broker, it's seldom an easy decision one way or another. The industry is so highly competitive that brokers are forced to practically bend over backwards in order to accommodate the needs of traders and differentiate from the crowd, and for traders everywhere, this has led to a more customer-focused market and better value, functionality and service across the board.
When it comes to weighing up the advantages and drawbacks of each different financial spread betting company, traders tend to think towards the end goal of signing up with one broker. In actual fact, it is possible and even advantageous to broaden your scope to multiple trading accounts, in order to reap the rewards of multiple different spread betting providers.
Multiple Spread Betting Accounts: The Best of All Worlds
Opening multiple spread betting accounts is quite normal, and it's a widespread practice amongst professional traders looking to get the most out of their trading capital. Spread betting brokers, by their nature of competing with one another in order to offer the best deal each bring something different to the table - whether that's in the form of better spreads, improved trading resources and platforms, or the selection of markets on offer. By opening accounts with several brokers, you can effectively capitalise on the unique selling points of each, to bring a diversity of benefit that simply isn't possible through trading a single account.
It is important to note that trading with multiple spread betting accounts isn't frowned upon. While of course each broker would prefer you traded exclusively with them for reasons of competition, spreading your trading across different platforms is advantageous for the trader, and by proxy advantageous for the spread betting broker. If trading multiple accounts allows you to improve your trading fortunes, that's good for the industry as a whole, and your continuing success will help improve the bottom line of each of your brokers.
How To Trade Many Accounts
While theoretically, trading multiple accounts allows you to reap the benefits of different trading platforms and brokerage services, the practicalities of managing multiple accounts can take some getting used to. When trading multiple accounts, the organisational burden of handling the logistics becomes more significant, with a greater emphasis on recording keeping and monitoring your open positions. Similarly, in spreading the risk and avoiding over-leveraging across the board, it's crucial that you keep a close eye on each of your trading accounts, and rotate between them on a regular basis in order to ensure you're fully on top of your entire portfolio. While this does require a bit more effort and input, the benefits can be significant, allowing you to cherry-pick the very best parts each broker has to offer.