Don't Put Your Eggs Into One B -

[newwurldmn]

Day trader here, for many years, fully automated.
I've never experienced any serious connection problem preventing me from trading.
I don't know.
Maybe it's just me being lucky, or using the right broker.

my biggest fear isn’t my broker going down but a massive power outage like what happend in Texas.

 

[newwurldmn]

Off course it can't happen, too big to fail, government oversite, etc. But what if it did?

I don’t see that as a possibility - at least it’s as remote as the spx dot shorting down 50percent in a few seconds (how do you hedge for that?)

but the cost of having 4 brokers in terms of bookkeeping and capital management (margin, etc) seems really annoying.

 

[murray t turtle]

brokers can fail in theory and practice. But not one failed in the gfc. And not one investor couldn’t manage their money during it.
And like when a bank fails, the FDIC will force a merger to protext depositers (deposits are highly sought after), same with AUM.

I am talking legit brokers: Schwab, Etrade, interactive, td amertrade, merril lynch, fidelity. Not fcm’s and certainly not bucket shops.

%%
Good points;
IBKR suggests 2 brokers.
Really 2...... good brokers sounds like one basket but with a good wise wall between the 2.
I do want more than 2 income streams /2 locations or more;
but having raised laying hens/ capital markets are not as fragile as hen eggs/LOL.
Went in to the bank once + the stinkin' pens would not write; power went off @ nite +cold ink to thick to work much Some how we struggled thru[I noticed yesterday@ bank, now use an electric pen/ but that'$ electric dependent]

 

[trost_samantha]

It's important to spread out as diversification is key to reducing risk in trading.

 

[murray t turtle]

Exchanges can fail.
Clearing houses can fail.
Brokers can fail.
Banks can fail.

It's a matter of controlling your risks vs the hassle to do it
How much hurdle and inefficiency do I want to support in order to be covered?

%%
EXACTLY\
+ seldom does any of those failures cost traders/investors lots money.
Good law sorry its not been on books since 1776; banks execs get profits clawed back 5 years foe stupidity or woke-broke ESG stupidity like SVB.
Diversity in time,
different banks,
location ,
diversity in price,
some but not lower priced stuff,
not just TX location only, even though i would overweight any home state,
try to avoid woke \broke\
ESG[ s = satanic mr musk warned]
try to avoid hi tax areas when possible,
try to avoid gov i dont like,
CO has changed for worst so may never hunt there again, not a prediction
different degrees of leverage,
different assets ,
RE,
IF i spot crooked character like SVB\ Jon corzone[GS reject maybe] get out of that zone.
SCHW + IBKR = so well run , dont need to divy it up much.......