Ask any institutional or hedge fund trader whether they trade with only one counterparty through one broker and expect to receive a look of astonishment (as to your complete lack of understanding) or a look of horror (at the thought of ever having to rely one house and one broker when looking to trade in volatile markets).
Ask any institutional or hedge fund trader whether they trade with only one counterparty through one broker and expect to receive a look of astonishment (as to your complete lack of understanding) or a look of horror (at the thought of ever having to rely one house and one broker when looking to trade in volatile markets).
Now ask yourself why the rules of engagement should be any different for you – can you rely on your broker 100%, can you rely on their software 100%, can you rely on anything 100% of the time?
Having fully funded accounts with more than one broker (with contact numbers, log on instructions and an understanding of the trading platforms) provides you with alternative options when you most need them i.e. Broker A’s platform is down; you are unable to get through to your brokers dealing desk to close out a position.
Remember that if you ever required to exit or enter a position having two routes to the market will always be better than one. Should you be in a situation where by you are holding a position that you are looking to close but are unable to do so with your primary broker – then simply transacting the desired trade with your secondary broker will mean that your not waiting till after a move has taken place. Then when markets resume normal trading you are able to go about unwinding positions and consolidating your account.
