Is it "OK" to have 2 online brokers?

I currently have one online discount broker I use for monthyl automatic investing where I can buy fractional shares. Is it "ok" if I want to open another brokerage account with a broker that doesnt offer automated investing but offers a wider range of options?

11 Answers

Relevance
  • 1 decade ago
    Favorite Answer

    Yes, ABSOLUTELY!

    Several reasons for it. Here are a few.

    o Not all brokerages provide all the things you might need

    o If something happens to one brokerage firm (down power line, etc), it's good to have a 2nd brokerage

    o Some charge for a phone order, while others do not

    o Some give you better real time quotes than others

    o Helps keep you fresh to new things that are coming out from the firms. If you see one of them have something the other one doesn't, it might help trigger a thought that can help you out.

    For me, I have multiple accts to ensure that I'm not hostage to a position if I needed to make a trade and my primary broker was having a problem. With a 2nd broker, I could at least neutralize a position.

    Hope this helps!

    • Login to reply the answers
  • Miriam
    Lv 4
    4 years ago

    Yes. In fact there can be some advantages doing so. Different brokers might give you access to different research tools. Also by having multiple accounts you can compare the services of one against the other personally to see if one is preferable to the other. There may also be some disadvantages. Some brokers have account minimums that if you meet them, you receive discounted commissions. Another is trying to remember which broker holds xyz that you wish to sell or buy more of. Or where was that cash balance that you wanted to invest.

    • Login to reply the answers
  • Anonymous
    1 decade ago

    joshuademex,

    It is O.K. to have more then one account.

    I use eTrade & it is nice to have everything in a single account. I don't have to juggle back & forth.

    Another disadvantage to two accounts would be volume discounts or perks. You are splitting your business so are not very important to either provider.

    If your monthly investment firm doesn't offer all you need then by all means open an account with another broker.

    Norm

    • Login to reply the answers
  • PH
    Lv 5
    1 decade ago

    as long as you are able to keep enough $ in each account to avoid monthly or quarterly maintenance fees, why not?

    But i think that some brokerages give you more perks if you have a certain amount of cash and securities - say 20,000 dollars worth. It would be harder to achieve that with two accounts, unless you aren't poor like me...haha

    • Login to reply the answers
  • How do you think about the answers? You can sign in to vote the answer.
  • 1 decade ago

    You can open as many as you need. It is best to try out different firms for their services. GO FOR IT!

    • Login to reply the answers
  • Anonymous
    1 decade ago

    It makes perfect sense, but may get a bit cumbersome at tax time!!

    • Login to reply the answers
  • Anonymous
    1 decade ago

    Yes.

    • Login to reply the answers
  • 1 decade ago

    Yes, the more the merrier!

    • Login to reply the answers
  • 1 decade ago

    yes. as many as suits your needs

    • Login to reply the answers
  • 1 decade ago

    It is perfectly normal.

    • Login to reply the answers
Still have questions? Get your answers by asking now.