You can have two or more Forex trading accounts. There’s actually no limit to the number of accounts that you can have, as long as you’re reporting your accounts to your local authorities per your local laws.
In many cases, it’s advantageous to have multiple accounts, especially if you use different strategies to diversify your risk.
How many brokerage accounts can I have?
No rule anywhere says you can’t have multiple brokerage accounts or trading accounts.
Some unscrupulous brokers may stipulate that you give them exclusivity, but you should stay away from companies like that!
You can even open multiple accounts with the same broker.
For example, a single user on OspreyFX can open multiple MetaTrader accounts and run multiple trading platforms.
The same can be done with prop firms, where you’d have accounts with multiple prop firms. You can then copy your trades across all accounts, or use different strategies for each of your accounts.
Active and passive traders
Multiple trading accounts are great for both active and passive traders. My own strategy involves some manual trading and some automated trading, so I have one account that only runs using a trading robot, and another account that I place manual trades on.
Keeping a separate account for both strategies ensures that you diversify your risk. So if one strategy starts performing poorly, the other strategy will continue to do well and grow.
Advantages of having multiple Forex accounts
- Seeking the best price by finding a broker or account with favorable spreads or overnight swaps for your strategy.
- Finding the right trading instrument if your current broker doesn’t offer it.
- Opening a new account with a different broker while keeping your old account open, to avoid the costs and inconvenience of closing long-term positions.
- Diversifying risks by keeping funds with different brokers.
- Accessing added-value services or tools that some companies only offer to live account customers.
- Separating different trading strategies.
- Participating in trading contests.
Disadvantages of having multiple Forex accounts
- Split attention: Managing multiple accounts can become time-consuming and can distract from focusing on individual trades or strategies.
- Split capital: Spread the capital thinly across many accounts may limit the potential return of each account
- Difficulty in monitoring and keeping track of all the open positions, P/L, and trades across multiple accounts
- Spreads in trading account vary and it can be difficult to find a common ground on trade management as you are dealing with different brokers
- possible inefficiency in case of unexpected events, for example: sudden change in market conditions and lack of liquidity, where closing a position on one account can have negative impact on other account
- additional administrative task, like the management of account and compliance paperwork.
How to trade more than one account
Trade copying is the process of automatically replicating trades from one MetaTrader account to another. Here is a step-by-step guide on how to copy trades from one personal MetaTrader account to another:
- Install both MetaTrader platforms. Some Forex copiers also allow for more than two MetaTraders, so install as many as you need.
- Install a trade copier software: There are several software programs that are designed to copy trades between MetaTrader accounts. The account you’re copying from is typically called the main account or master account.
- Some popular options include Local Trade Copier and Forex Copier. These programs allow you to connect multiple MetaTrader accounts and copy trades between them in real-time.
- Connect the accounts: After installing the trade copier software, connect the MetaTrader account you are copying from to the account you are copying to. This can usually be done by entering the account information into the trade copier software.
- Configure the trade copying settings: Once your accounts are connected, configure the trade copying settings to determine how the trades will be replicated. This would include setting a maximum risk level, determining the percentage of your account balance to be allocated to the copied trades, and determining the type of orders that will be replicated.
- Monitor the copied trades: Keep an eye on the copied trades and ensure they follow your risk management and money management plan.
- Close or discontinue copying: If you are not satisfied with the performance of the account you are copying from, you can discontinue copying their trades or close the copied trades.
A VPS (Virtual Private Server) can be ideal for copying trades as it can run 24/7 and is not dependent on your computer. This can ensure that trades are copied in real-time and prevent missed trades.
Having separate accounts for your trading strategies can be a very useful way to eliminate risk between strategies. On the flip side, having several trading accounts spread out across different brokers can help you mitigate the inherent risk of brokers themselves.