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 account with a broker that doesnt offer automated investing but offers a wider range of options?

 

  • Yada Yada Yada 5:05 pm on February 25, 2010

    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!

  • David K 5:05 pm on February 25, 2010

    yes. as many as suits your needs

  • Norm 5:05 pm on February 25, 2010

    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

  • Vegas 5:05 pm on February 25, 2010

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

  • PH 5:05 pm on February 25, 2010

    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

  • xeno277 5:05 pm on February 25, 2010

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

  • traderb550 5:05 pm on February 25, 2010

    Yes, the more the merrier!

  • Dang 5:05 pm on February 25, 2010

    It is perfectly normal.

  • Frank Castle 5:05 pm on February 25, 2010

    Yes.

  • Smiley 5:05 pm on February 25, 2010

    If you got the money honey, they’ll have the time. :o )

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