Posted by Aaron Smith on January 26, 2011 at 9:31 am

The investment environment today is far different than it was just a decade ago. The good news is investors now have far more options to profit from market volatility. In todays fast moving markets it is sometimes necessary to have multiple accounts. First, lets take a look at why you might want to open multiple accounts with your broker.

Reasons for Opening Multiple Accounts

• Increased Flexibility   Multiple accounts increases your flexibility and your ability to react quickly to market movements. Depending on your brokerage, their might be rules in place that would limit you from taking on certain positions if you have all your money in a single account
• Trading Execution Benefits Youll almost never find a full-time stock trader who has only one broker account. Why is this? It really is beneficial to a trader to have the ability to trade from multiple accounts because of the rules and regulations in place today. Day trading limits can be met quite quickly, and many traders now wish to have multiple accounts to maximize their long and short opportunities. Youll have more leverage to make the trades you want right away if you have more than one account.
• An Account for Each Type of Investment Many investors find great benefit to opening multiple accounts with a broker so they can have an account for each type of investment. For example, you might have one account with mutual funds in it, one account with futures, and one account with individual stocks. This can help you keep everything in order.

Many software trading systems will allow you to link multiple broker accounts into one trading platform, which can give you the best of both worlds. The ability to track all your possible investments in one spot, but still have multiple accounts with your broker. Most brokerages will allow you to open multiple accounts, and the process is usually very simple. Which online brokers have the best reputation for user-friendly multiple account management?

Best Brokers for Managing Multiple Accounts

• Interactive Brokers Traders who have anything to do with the international markets often rave about Interactive Brokers. The broker allows you to manage up to 15 accounts with a single login. The trading platform here is powerful, but it can take some time to learn.
• ThinkorSwim The trading platform at ThinkorSwim is absolutely terrific. The variety of tools is second to none, which all types of investors can appreciate. Multiple accounts are easy to manage through their unique platform.
• TradeKing The TradeKing platform is easy to use and multiple accounts are easy to navigate using their innovative system. The educational resources and customer service here are terrific, which makes TradeKing a good option for those who are starting out in the market.
• OptionsXpress OptionsXpress is more expensive than most brokers, but if you are able to get past the costs they do have some impressive tools. The virtual trading platform is impressive and allows an investor access to many markets.

There are plenty of reasons why having multiple accounts with your broker might be a good idea. The number of solid online brokers available makes taking that step worthwhile for many investors. Rear our broker reviews or check out our broker comparison chart for more information.