Vantage Markets allows you to have multiple trading accounts

Can I have more than one trading account with an online broker?

As new trading brokers pop up every now and then, it’s easy to get caught up in the hype. You also might want to open multiple trading accounts, but is it actually possible to have more than one trading account?

Yes, it’s possible to have multiple trading accounts. However, not every trader should create more than one trading account.

Read on to know whether or not you have multiple trading accounts.

Can you have multiple brokerage accounts?

Vantage Markets allows you to have multiple trading accounts
Vantage Markets allows you to have multiple trading accounts

Yes, it is possible to have multiple accounts with an online broker. One such broker that allows opening multiple accounts is Vantage Markets. You can find many other brokers with this feature but Vantage Markets is the most trusted one.

Some experienced traders have more than one trading account because it makes trading different assets easier. But multiple accounts only make sense for a few traders. For many traders, especially newbies, having more than one account is overkill.

Trade more than 3,500+ markets from 0.0 pips spread without commissions and professional platforms:

(Risk warning: 79% of retail CFD accounts lose money)

When should you have more than one brokerage account?

Are you confused about whether or not you should have more than one broker account? Read on to get an idea:

  1. You have different trading goals
  2. You want to use different features
  3. You want to diversify your tax advantages
  4. You want to trade risky assets
  5. You want to invest for your child
  6. You want more SIPC protection

1. You have different trading goals

You can create more brokerage accounts if you have multiple trading goals that you want to categorize into different accounts. It keeps you organized and focused.

Your goals include retirement, starting a business, your kid’s education, or your home’s down payment. When spreading these goals across different accounts is helpful for different reasons.

First, when you have different accounts for different trading goals, you can easily keep track of your progress. You can simply look at each of your trading accounts to know how much you have earned. Second, different trading accounts make it easy for you to use different trading strategies.

2. You want to use different features

Each brokerage firm has certain perks, making them popular in the market. You can take advantage of multiple features by opening multiple trading accounts with different brokers.

Certain trading brokers offer their registered traders an opening bonus, some organize trading tournaments, while some offer a cash bonus.

3. You want to diversify your tax advantages

401 (k) plan offers serious trading advantages
Source
https://njbmagazine.com/monthly-articles/exploring-the-secure-act/
401 (k) plan offers serious trading advantages

Do you want to diversify your trading tax advantages? If so, create multiple trading accounts. Certain accounts offer tax advantages while still keeping some money for you to use in the investment amount.

Trading accounts like the workplace 401 (k) plan offers serious trading advantages. Instead of paying taxes on your earnings, you pay taxes on withdrawals during retirement.

Besides the 401 (k) plan, you can open a Roth IRA or Roth 401 (k) account. This way, your money grows tax-free, and you can withdraw it tax-free during retirement.

Lastly, you can create a retirement account to invest for short-term goals. With this trading account type, you can increase your investments after making your maximum allowable contributions.

Trade more than 3,500+ markets from 0.0 pips spread without commissions and professional platforms:

(Risk warning: 79% of retail CFD accounts lose money)

4. You want to trade risky assets

Traders ideally have different accounts when they want to trade risky assets.

For instance, you can have two trading accounts. In the first account, trade safer assets like index funds and ETFs. Whereas your second account can be for high-risk trading strategies like cryptocurrencies and forex.

Keeping separate trading accounts for safe and risky assets makes it easy for you to use different strategies.

5. You want to invest for your child

Investing in your child is one of the best investments
Investing in your child is one of the best investments

You can have multiple trading accounts if you want to invest for your child. This way, you can dedicate your second account to your kid’s investment.

Individuals under 18 cannot open a trading account. But you can create a certain type of trading account, like a custodial account for your kid. 

The reason you should invest in the custodial account instead of your own brokerage account is that the custodial account legally belongs to kids. You cannot take the money after making a deposit.

In addition, custodial accounts come with great tax benefits. Instead of paying high taxes, you are subjected to the kiddie tax. That means the first $1,100 earning in a custodial account will be free. The next $1,100 will be taxed at the kid’s tax rate, but if it exceeds $2,200, the account will be taxed at your rate.

6. More SIPC protection

Brokerage accounts offer SIPC protection of up to $500,000 per investor. With several trading accounts, you can get more SIPC protection.

Conclusion about reasons to have more than one trading account with an online broker

You can take advantage of plenty of perks by having more than one trading account. It also diversifies your tax advances and risks. Plus, it makes it easy for you to track your goals.

But not all traders should have multiple trading accounts, especially if you are new to the trading market. Always consider your financial goals before creating more trading accounts.

Trade more than 3,500+ markets from 0.0 pips spread without commissions and professional platforms:

(Risk warning: 79% of retail CFD accounts lose money)

Last Updated on June 18, 2023 by Yuriy Kunets