More than one broker?

[timeiz2short]

Just wondering would it be a good idea to use two brokers? For example if you've got one broker that has a lot of good features but not exactly cheap, would it be a good idea to go with another broker that has a low flat fee. In my case I'm thinking to do that since fees can add up pretty quick with too many trades plus I'm a beginner. So that could guard against paying too much for losses.

Peace

[HappyT90]

What do you mean by good features? If you're saying that you're using one broker just for the research tools then I think that's a bad idea. There are many free websites out there that you can use to do your research. However, I know some people that have used two brokers before because of different commission rates. For example, if I decided to trade options, I could get a much better deal from ThinkorSwim than at Firstrade. However, for regular stock trading, it would be much cheaper to use Firstrade than ToS. Therefore, I would open two accounts. I would use my ToS account for options and my Firstrade account for stocks. However, I'm not that into options so I've never actually tried ToS before. Therefore, all I know is that they're very cheap for options. I don't really know how good their service is so any users of ToS can feel free to comment about them.

[MSheldar22]

Just wondering would it be a good idea to use two brokers?

I hear about people doing that and really there is nothing wrong with it. A very popular combination is Zecco for very inexpensive trades (free typically) and using Etrade, TD Ameritrade, or Scottrade for trading tools and research.

[Airelon]

There are days that I think that I have a hobby of 'collecting' brokers. I've been up to 4 different brokers before, and have multiple accounts within them.

Sometimes I use a different account at the same broker, or a different broker - for money management reasons. There are some brokers I use (such as Sharebuilder) purely for investing, and not for trading. Other brokers (such as Scottrade) are difficult, if not impossible to invest with - since they don't offer DRIP's. But they're ok, as far as trading goes.

So to answer your question - yes. And I know quite a few other traders and investors who do the same thing I do ...

[Ray The Money Man]

As of today I am using three brokers. They all have a "niche" they fit into. Just like my different trading strategies.