What are the advantages or disadvantage of having two or more accounts with different institutions?
Obviously one disadvantage of having to open several accounts is that the investment capital increases without any assurance of positive gains on the trades. Although one can treat both accounts as a necessity to be able to have access to several markets. Some broker / dealers offer the same service but this can strain a single account because of allocation and exposure of risk in the market. It also depends on the level of sophistication an investor / trader would want to achieve. As a matter of trading principles it is necessary to if one would like to have a proper portfolio management in place although there are several techniques that are mentioned in the book Megatrade101 emphasizing these strategies that would serve the same purpose and effect on trades as having accounts with other institutions.
Top Articles
- Cost of Trading ?
- How does a Price Page Indicator help an investors’ trading? How is it summarized?
- What are the best indicators to use?
- What is your batting average in trading this market or any market at all?
- Why do we have to trade FX while we can trade other forms of investment with fewer risks involved?
