Some interesting reasons why it’s better to have different deposits from several binary options brokers. You’ll find out what risks you face using multiple brokers and what benefits you get.
Why do traders use some brokers simultaneously
Some binary options traders prefer to work with several brokers simultaneously. Why do they do this? What are the advantages of working with several brokers at the same time?
In order to understand why traders choose multiple brokers, we should know about non-trading risks. These risks aren’t directly related to trading. However, at the same time, they are still there, and they can’t be denied.
Non-trading risks of using multiple brokers
What factors can be attributed to non-commercial risks? For example, a trader can’t be sure that the broker is totally honest with him or her and executes all the conditions and obligations. Additionally, sooner or later, any broker may temporarily fail or have some problems with the site or trading platform.
Here is a simple example. Suppose the trader got a signal to buy a CALL option. Nevertheless, because of the bugs in the trading platform, he was unable to buy any option. In this case, if the trader had an account with several brokers, he’d still be able to buy a CALL option and make a profit.
Most brokers say, "don’t keep your eggs in one basket." What does this mean? To minimize trading risks, it is recommended to diversify your portfolio of assets, i.e., buy multiple options so the profit could eliminate the possible loss. This idea also applies to non-commercial risks. Their diversification is possible by working with several brokers.
Benefits of using multiple brokers
Trading with multiple brokers at the same time can have other benefits not related to the minimization of non-commercial risks. Each broker may offer different trading conditions. For example, one broker may offer a bigger bonus; another broker can offer higher profits.
In this case, in order to take advantage of all the benefits of several brokers, you can open accounts with each of them and work with several brokers simultaneously.
What are the cons of this approach? Of course, there are some disadvantages to trading with several brokers.One of the most important is that you needmore funds to have two or more deposits.
Another drawback of this work is the trader prefers one broker to trade or trades very quickly in order to buy options from two brokers simultaneously. Such haste can lead to unwanted errors.
Criteria for selecting brokers for simultaneous trade
One of the main criterion for choosing the broker is the regulation. Regardless of whether the trader works with one or more brokers, it is preferable that the brokers are regulated because only licensed brokers can guarantee the security of the money.
Regulated brokers are required to ensure their traders’ deposits. Regulations also indicate the security of investments.
In addition to the regulation, it is necessary to pay attention to trading conditions. Traders can compare the following criteria:
• The amount of the minimum deposit
• The presence of a demo account
• The number of contracts
• The number of the assets
• The maximum bonus for profitable trades
It is recommended to pay attention to the contracts, the maximum award, and the number of assets.
I advise you to keep two trading account with different brokers. However, beginners should trade with one broker to understand its strengths and weaknesses and then open another account. By the way, there are some newcomers who changed brokers after a series of failed trades,and then, they started to trade successfully.
It certainly is not magic. It just seems every trader has his or her own individual characteristics, and it is very important to find "your broker."