As the competition of online discount stock brokers increase, the ease and requirements of opening an account has becoming increasingly easier.
If you spend some time following any active stock broker, then you will realize that most of them have numerous accounts at various online brokers, but why? Why would anybody want multiple trading account?
You can look at all the stock broker reviews that you want, the problem is that all brokers offer different services and benefits. What may look good to an active trader may not be compatible with a long-term value trader and so on. This alone is why traders often have accounts with different brokers.
If you like to short stocks, then ultimately you will need to borrow shares from your broker; however, brokers won’t always have the shares you are looking for.
Many traders like to hold long-term positions, but also actively trade shares. In this situation, commissions are obviously important. So, while you may feel more comfortable holding long-term shares at stock broker A, stock broker B has cheaper commissions for your more active trades.
Sure, there are many reasons why anybody would want more than one stock broker account. It is really up to finding the best solutions for your trading style. In the end, there are too many viable options for you to hold all your cards with one.
Don’t have a stock broker account? Learn how to open one?