Possible?!

Quote from LeeD:

1) As a backup in case one of the brokers has technological problems

It's a good idea to have a back up broker but it makes no sense to trade in both, particularly a covered put where if done in separate accounts there can be margin issues.

2) To hide the actual position from both brokers

Why would a broker care what you have in another account elsewhere?? (eye roll)

3) There may be some commisssion/liquidity considerations... like one broker may offer pre-market size for stocks while the other broker is generally cheaper.

I wasn't aware that brokers offered size. Somehow I thot that they were intermediaries b/t buyers and sellers
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Quote from spindr0:

Why would one do this in separate accounts in the first place?
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Quote from shortie:

money laundering?
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I think that's a winning answer!

:)
 
Quote from cigarno:

Why not?! aren't stocks fungible?!
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It has nothing to do with the stocks being fungible. You have to look at the process behind it. Both IB and MF are clearers so essentially you are talking about transfering a stock between two clearing firms, which is possible, but I doubt anyone would go through the trouble of doing it for 100 shares and it may take a while, so my answer would still be: "no, it's not possible".
 
Quote from MTE:

It has nothing to do with the stocks being fungible. You have to look at the process behind it. Both IB and MF are clearers so essentially you are talking about transfering a stock between two clearing firms, which is possible, but I doubt anyone would go through the trouble of doing it for 100 shares and it may take a while, so my answer would still be: "no, it's not possible".
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I don't know current policy since I haven't opened a new account in a long time but 10-15+ years ago, many brokers began charging a fee of $50 or more to ACAD a stock position (or account) out.
 
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