Should you use more than one binary options broker? There are arguments both for and against but in the end the positives outweigh the negatives.
Should You Have More Than One Binary Options Broker?
This is a question I have fielded many times, from many traders. Should I use more than one broker for my binary options trading. On the one hand, keeping all your cash with one broker is a good thing. It means your balance is likely to be higher which results in better account management and enhanced returns. The theory is simple, the larger your account the larger the trades you can make, resulting in greater profits on individual wins and over time. On the other hand there are many concerns with putting “all your eggs in one basket”, as well as unseen benefits of spreading your capital across several brokers.
Why You May Want To Use More Than One Broker
The first reason why using more than broker is a good idea is because not all brokers are the same. For starters, there are different types of trading platforms and none are exactly the same. They focus on different types of expiry, different types of options, have different features, different asset lists and this includes white labels of the same platform. SpotOption is a great example. It hosts the largest number of options types, the largest number of assets, is used by regulated and non-regulated brokers and no one of them is exactly the same. On top of that, even the best brokers have black out times on features, expiries and assets as needed for them to control their losses. Using more than one broker is the best way to ensure that you have access not only to trading, but to the trading you want when you want it.
Safety is another reason and possibly even more important than the first. Binary options trading can be a risky business. It is a well known source of scams and even trusted brokers sometimes have terms or conditions that can tie up your capital and keep you from withdrawing your profits. Using more than one broker helps by splitting your capital the same way diversifying an investment portfolio protects you from loss. If one broker turns out to be shady or an outright scam you will only lose the portion of your deposit that you sent to them, not your entire bank roll. After all, protecting your capital is the number one rule of trading.
Taking advantage of bonuses and other special offers is yet another reason why using more than one broker could be a good idea. All brokers offer some form of enticement to traders ranging from first deposit bonuses, cash matches, risk free trades and trade insurance through specialized training, video courses, cash back on volume and others. Most will also have some type of limit such as 100% up to your first $500 or $1000 of deposit. If you are planning on making a deposit that will max out such offers you may be better served by depositing with two brokers in order to reap the fullest benefit. Some brokers will allow you to open more than one account but be warned, this does not mean they will give you more than one bonus.
Yet another reason to use more than one broker is to keep a low profile. This is not the norm but I have had several conversations with traders who have been shut out of their broker due to an excessive number of wins. By no means do I want to imply that this is a standard practice but it does make sense if you think about it. The brokers want you to trade, but what they really want is for you to lose because they make money with every loss. When they review trading activity accounts with excessive wins stand out like a sore thumb and just like at a casino, winners are welcomed to their faces but dreaded behind closed doors. By spreading your capital among several brokers you can minimize your footprint and keep your account under the radar.
More Than One Broker, It’s Almost A Necessity
After reading all this I am sure it is easy to understand how using more than one broker is advantageous and it all comes down to two things; your enjoyment of trading and the safety of your money. The catch is that not everyone, especially new traders, have the capital to make this work. This is where low deposit brokers like MarketsWorld and IQOption become really attractive. MarketsWorld’s minimum deposit is $20, IQOption’s is $10, with minimum trade sizes of only $1 making them perfect for accounts of all sizes (you can use sound money management). Not to mention the fact they are two distinctly different platforms with vastly different features, and both trusted brokers here at BinaryOptions.net.