I have more than one broker, newbie traders ask me why?
Well….there are a few reasons:
1. The pricing can be vastly different between one broker and another
2. Sometimes it makes it easier to compartmentalise my strategies if I run them on a couple of different accounts (long term on one, short term on another – or between the different markets)
3. To ensure that the funds held in my account is covered by the Financial Services Compensation Scheme (yep these guys can go bust and if they do I want to make sure I stand a fighting chance of getting my money back!)
4. Sometimes I just like one broker better than the other (what can I say….I’m human)
Today – 9th December – was the day when I could unleash the secret weapon. My Cable trade. This trade will in future be called G-Force in honour of the person who back tested it as I don’t have the patience for that lol.
This is such a stonking trade that I loaded it on 2 accounts.
Order was placed on both accounts within minutes of each other. Both sell stops, same entry price, same stop loss, same target of 75 pips as usual.
There the similarity ends.
Broker One (Good Broker) executed my instruction bang on the money at exactly the price I had requested.
Broker Two (BAD Broker) executed my instructions 2 pips higher. WHY????? The order was in there 15 minutes before it was executed and it wasn’t as if the market was moving so fast that they couldn’t fill it or that the size of my trade was so big!
At Plus 25 pips on both the stop was moved to breakeven – everything hunky dorey.
Until the exit…..
Good Broker – closed the trade out at +75 (lovely jubley)
BAD broker – according to them cable just tickled my target order at which point it reversed and stopped me out at breakeven.
I don’t know whether to be happy or mad.
Thanks to the trade management at least the BAD broker trade was breakeven. PLUS the good broker did what they were supposed to do so I am +75 pips (should have been 150 😦 )
But remember even good brokers go BAD – so check everything these guys do.