Opting to start a new business in the 21st century is always exciting, albeit challenging and a little bit confusing. Thanks to the access to immense amounts of technology both in hardware and software, doing business has changed a lot from what it used to be. Not only can you do it from home and on the move these days, but you still have enough time for another job, perhaps your current full-time responsibility you are still not ready to leave. This is how most people start when they decide to join trading platforms. In the year 2024, just like it has been for the last several years, it is all about the modern ways of trade. While it is not really a new thing any longer, trading has enjoyed quite a renaissance since the internet and all of its features became widely available.
Trading through contemporary means is simply too straightforward, easy, and appealing not to be a part of. In addition to this, there are numerous trading platforms to choose from in terms of your go-to place for all things related to trading. But are you really only allowed to use one or is it possible to make it big with multiple trading platforms? Is it even a question or is it a no-brainer to pick only a single one for all of your trading needs? Well, in this article we discuss this issue and determine the pros and cons of having multiple trading platforms. Read on to learn more information about this crucial choice and be sure to check out tradingforexsites.com for a list of the best forex brokers in 2024.
As it is often the case, we are going to start the list by mentioning the good sides of using more than one trading platform at once. It is better to start on a positive note so here is a list of the biggest pros of multiple trading platforms.
1. Easier to Manage
Using multiple trading platforms implies the use of more than one trading account, also known as a brokerage account or a demat (dematerialization) account. In order to trade something, you have to convert it into an electronic format, which is what trading platforms and the whole industry are all about. Not only is it possible and legal to have more than one such account, but it can be really beneficial because it becomes easier to organize and manage many different types of shareholdings in your possession. Sorting and classification are easier when you can jiggle between platforms and investment types, provided that you have more than one platform for a reason. There is enough variety on the market for any broker to have more than one trading platform and use them equally.
2. Best of All Worlds
The good old saying says ‘best of both worlds’ but the trading game, as mentioned, has a lot of variety to it. If a trader like you wants to make the best of the whole situation and maximize their chances at earning more and becoming successful, more than one platform is a necessity. How else would one be able to imply a discount broker and a full-service broker at the same time? Keeping parallel accounts and using two (or more) platforms allows one to have access to multiple interfaces and their respective added services. Trading and investing are all about having eggs in different baskets after all so multiple platforms make sense every day of the week.
3. More Security
The last big pro of having multiple trading platforms revolvers around the safety and security of your assets, as well as of your general chances on the market. Having everything in one place is never the safest option. Some traders trade the same thing from multiple accounts and on multiple platforms, while others dedicate one to a single commodity. No matter what you choose your assets will be better protected since they are not all in one location.
Now that you know about the positive sides of having multiple trading platforms to use, let us talk about the negatives. Consider the following three cons of using more than one platform for trading.
1. Added Maintenance Costs
Using more trading platforms means having to pay for more things on more fronts. Annual maintenance charges that are usually present with every account pile up and you need to pay more transactional fees and other charges than what you would have to pay with only a single platform. Still, it is something many experienced traders are willing to do because the pros outweigh the cons in this situation.
Perhaps the hardest con to deal with when using multiple trading platforms as a trader is the fact that it can lose you a lot of valuable time. Not only is it time-consuming to constantly switch and toggle between multiple platforms, but it is mentally exhausting and quite boring. Keeping things active on more than one side, especially at the beginning, is not for everyone. Multiple updates, many different tracking assignments, and just generally being able to react quickly on multiple ends is quite challenging. A lot more commitment is needed than if you just decide to trade on one platform. Therefore, it could be said that this is a move much better suited for experienced traders looking to elevate their game.
3. Unused or Little Uses Accounts
This is obviously something that should not happen when trading on multiple platforms, but it is bound to start happening if you are not careful. One account will always somehow fall behind the rest, either due to something on your end that can be caused by negligence or a lack of time, or because it just so happens that the commodities there are not favorable. If an account stays idle for too long and if you do not revisit it often, it may get frozen. Unless you are absolutely certain that you can jiggle all of them, it would be best to skip using more than one platform for the time being.