Should You Be Using Multiple Brokers?
When I started investing, I picked the first broker I could find—Revolut. Like many beginners, it was all about getting started. I didn’t overthink it—I just wanted to put my money to work. The broker I chose had a simple interface and low fees, which made it easy for me as a beginner. It gave me the confidence to start investing without feeling overwhelmed. But as my passion for personal finance grew, so did my curiosity. I began exploring the world of investing more deeply, and I realized there was a lot more to brokers than just being a place to buy and sell stocks.
Why I Use Multiple Brokers
Today, I’m using multiple stock brokers—actively three, with one more I dip into occasionally. You might be wondering, why so many brokers? Well, it’s not just about convenience or curiosity—it’s a well-thought-out strategy that has evolved over time. Let me share the main reasons that pushed me in this direction, from getting the best value to ensuring safety and enhancing flexibility.
Getting the Best Value for My Money
First, it’s about the best value. Each broker has its own unique advantages—lower fees, better tools, or more flexibility. By spreading my investments across multiple platforms, I make sure I’m getting the most out of every dollar. For example, I use Trading 212 for commission-free trading, which helps me save on costs, and Interactive Brokers for its extensive market access, especially for international stocks. Some brokers might have amazing research tools, others might offer commission-free trading, and some just make it easy to buy international stocks. This experimentation helps me find the best of all worlds, allowing me to optimize my investment strategy.
I love trying out different platforms and seeing what they offer. It keeps me on my toes and ensures I’m not missing out on any great features. Plus, it’s fun! Investing is my passion, and finding the perfect combination of brokers feels like a treasure hunt—always looking for that extra edge.
Safety and Diversification
Then there’s the safety aspect. Diversification is not just about the stocks or funds you buy; it’s also about where you hold them. Although most regulated brokers are safe, there have been times when brokers have gone down—sometimes due to technical issues, sometimes for more serious reasons. When that happens, your assets are usually protected and eventually returned. But there’s a catch: you can’t trade during that period. By using multiple brokers, I ensure I can keep moving even if one platform goes dark.
Moreover, diversification across brokers helps reduce risk exposure to unexpected changes in broker policies or fee structures. If one broker suddenly changes their fees or limits access to certain markets, having accounts with other brokers ensures I’m not impacted as heavily. Think of it like this: if one of your brokers is suddenly unavailable, you don’t want to be stuck waiting for them to get back online. With multiple brokers, I have the freedom to manage my portfolio at any time, no matter what happens.
Finding Balance: Simplicity vs. Security
Now, I’m not saying everyone needs to have six brokers. For many, that could be overkill and add unnecessary complexity. But for a growing portfolio, two brokers make a lot of sense, giving you both security and access to different features. As your investments grow, you might consider adding more—or maybe not. It really depends on what matters most to you.
Do you prefer simplicity or security? For some people, having everything in one place is easier and more manageable. But for me, the added layer of security that comes from spreading things out is worth it. It’s the same reason I have three bank accounts and use two different crypto exchanges—diversification doesn’t just apply to assets; it applies to where you keep those assets too.
My Current Setup
At the moment, I’m actively using three brokers, and I have one more that I use from time to time. Each of them serves a specific purpose, and together they give me the flexibility, safety, and features that I need to feel confident about my investments. For example, I use Interactive Brokers for long-term stability & safety, Trading 212 for commission-free trading, and eToro, my latest broker addition, for instant & free credit card deposits and user-friendly interface. The fourth broker I use occasionally is Lightyear, primarily for exploring new features they offer. It may seem like a lot, but for me, it’s the right balance.
What About You?
Everyone’s investing journey is different. For some, one broker might be all you need. For others, expanding to two or three might provide that extra comfort. Recently, I made a video where I talked about one of my new brokers, eToro, which you can see below. I got quite a few people expressing their negative opinions about it—which I totally respect and understand. eToro has its downsides, like evert broker has. Obviously, I’m sharing what I’m doing, not recommending everyone else do the same. That’s the beauty of investing: if you don’t like something, you don’t have to do it. I’m just sharing different tools that have worked for me, and they might work for you too—or they might not.
Interestingly enough, it seems like most people have strong opinions about it without actually having tried it themselves. I’m a big believer in “walking the talk”—if I try something and don’t like it, I’ll stop using it. But if I form an opinion without actually trying it, it’s hard to truly evaluate its value. That’s why I create these videos, to share different options like a buffet at a restaurant. You pick what works best for you.
The same way I invest in S&P 500 ETFs, Bitcoin, and Real Estate, for some of you, dividends or individual shares might be your preferred way of investing. There’s no right or wrong, just different options, and I hope some of the ones I’m showing you will work for you.
The important thing is to find what works for you—what aligns with your goals and risk tolerance. If you’re feeling like it’s time to diversify your setup, maybe try a second broker and see how it feels. You don’t need to make drastic changes all at once. Small steps can make a big difference over time.
Stay smart, stay diversified,
Kai
Why I Sold My Last Stock & Switched to eToro
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