Why I Use 3 Different Stock Brokers (And You Should Too)
"Kai, why do you use so many brokers? Wouldn't one just be enough?" This is probably the most common question I get from my Smart Money community, and I totally get why people ask it.
Here's the thing: I don't use three different brokers because I'm bored or love complicating my life. I have solid reasons for this approach, and after reading this, you might consider doing the same thing. Maybe not three brokers like me, but at least having a backup option makes complete sense.
Let me walk you through exactly why I split my investments across Interactive Brokers, Trading 212, and eToro, and how this strategy has actually saved me time and money.
The Two Main Reasons I Use Multiple Brokers
Diversification Isn't Just About Stocks
You've heard "don't put all your eggs in one basket" when it comes to investing in different stocks and ETFs. Well, the same logic applies to brokers themselves. We never know what might happen, right?
I've seen banks go out of business. I've watched crypto exchanges collapse overnight. Yes, the brokers I use have protection measures like asset segregation and fund protection, so they're much safer than crypto exchanges. But even with these protections, if something goes wrong, your money could be locked up for weeks or months while everything gets sorted out.
Having multiple brokers gives me peace of mind. If one platform has technical issues, regulatory problems, or anything else, I can still access my other investments and continue trading normally.
There's No Perfect Broker (Yet)
This is actually the bigger reason for me. Sadly, there's not one single broker that does everything I want perfectly. Maybe this article will inspire some brokers to combine all these features into one amazing platform, but until then, I'm sticking with my multi-broker approach.
Each broker I use offers different benefits that are genuinely worth the slight extra complexity. Let me show you exactly what I mean.
My Primary Broker: Interactive Brokers
Interactive Brokers holds the biggest chunk of my portfolio, and there's a good reason for that. This was one of the first major brokers I started using, and I can honestly say I trust them completely.
Why I Love Interactive Brokers
Solid Track Record: They're one of the longest-serving brokers out there, definitely one of the biggest by assets under management. They're publicly listed in the US, which gives me extra confidence. When you're talking about your life savings, you want to know the company handling it has been around the block.
Incredible Flexibility: This is huge for me. I can transfer stocks and ETFs both into and out of Interactive Brokers. Not all brokers offer this, especially the transfer-out part. This flexibility saved me when I moved from Europe to the UAE. Instead of selling everything and paying taxes, they did an internal transfer to their UAE entity. My portfolio just moved seamlessly with my new address.
Global Reach: Speaking of moving countries, Interactive Brokers operates almost everywhere. If you're someone who might relocate for work or life, this is invaluable.
The Downsides
Interface: While it's gotten better over the years, it's still pretty clunky. For beginners, it can be overwhelming and not very intuitive. They have three different apps, which confuses a lot of people about which one to use.
Commissions: I pay commissions on every stock or ETF purchase. If you're investing small amounts, say $100 at a time, paying $1 commission hurts. But if you're investing $5,000 or $10,000 monthly like I often do, those commissions become negligible.
| Feature | Interactive Brokers | My Rating |
|---|---|---|
| Track Record | Longest-serving, publicly listed, huge AUM | Excellent |
| Portfolio Transfers | Full in/out transfers, international moves | Best in class |
| Interface | Complex, 3 different apps, overwhelming | Poor |
| Commissions | $1+ per trade (stocks & ETFs) | High for small investors |
| Global Access | Available worldwide | Excellent |
| Cash Interest | Only on balances over €10,000 | Limited |
| Best For | Large portfolios, international investors, long-term holdings | My primary choice |
My Second Choice: Trading 212
Trading 212 is where I really appreciate the user experience. They've nailed the interface design, both on desktop and mobile.
Why Trading 212 Works for Me
Beautiful Interface: It's visually much nicer than Interactive Brokers, with fewer overwhelming options. As a buy-and-hold investor, I don't need fancy research tools everywhere. I just want to buy my stocks or ETFs, set them, and forget them.
Zero Commissions: No fees on stocks and ETFs. This is perfect for smaller investors or anyone who makes frequent purchases.
Interest on Cash: While your money sits waiting to be invested, you earn interest. Right now I'm seeing 4.1% on USD, 2.2% on EUR, and 4.35% on GBP. These rates are flexible based on central bank rates, but it's still nice to have.
Trading 212 Card: They offer a really nice debit card that lets you spend your uninvested cash. I made a whole video about this card because it's actually one of the better ones I've used.
The Limitations
Portfolio Transfers: When I moved countries, they couldn't transfer my portfolio. I had to sell everything and start fresh, which wasn't ideal. They've recently added limited portfolio transfer options, but it's not as seamless as Interactive Brokers.
Limited for Large Portfolios: If you have a huge portfolio, the transfer limitations become a bigger issue.
If you want to check out Trading 212, use my link or the code "Kai" in the app for a free share worth up to €/£100. You can read more about that free bonus here.
My Growing Position: eToro
eToro currently holds my second-biggest position, and I'm really happy with how it's performing. The interface strikes a nice balance between simplicity and functionality.
What Makes eToro Special
Instant Deposits: This is huge for me. I can deposit funds instantly using my USD credit card with no fees. With Interactive Brokers, depositing money can be cumbersome.
eToro Club Benefits: This is honestly one of my favorite features. Your membership tier automatically increases based on how much you deposit over time. I'm currently at Platinum level, and the benefits are incredible:
Dedicated account manager
Interest on cash balance
Free access to Delta Pro (my investment portfolio tracker that combines all my brokers)
Free Wall Street Journal subscription (I read this daily)
When I hit $50,000, I'll get handpicked sporting event tickets and invitations to industry events
Crypto Trading: You can trade crypto through eToro, though I don't recommend it due to high fees.
Commission-Free ETFs: No fees on ETF purchases, though stocks might have small commissions depending on your location.
The Downside
No Portfolio Transfers: Currently, you can't move your portfolio to another broker. Hopefully, they'll add this feature soon, but it's another reason I don't put everything in one place.
| Club Tier | Minimum Deposit | Key Benefits | My Experience |
|---|---|---|---|
| Bronze | $0 | Basic platform access | Good starting point |
| Silver | $5,000 | Monthly market analysis, webinars | Nice educational content |
| Gold | $10,000 | Dedicated support, risk management tools | Support quality improves significantly |
| Platinum (My Level) | $25,000 | Account manager, interest on cash, Delta Pro free, Wall Street Journal free | Amazing value - WSJ alone worth $400/year |
| Diamond (My Goal) | $50,000 | Sporting event tickets, exclusive industry events, priority everything | Really excited to reach this level soon |
The Broker I Miss: Lightyear
I used to use Lightyear much more when I lived in Europe. Unfortunately, they don't operate outside the EU and UK, so I can't use them as much from the UAE.
But I have to give them credit for having the sleekest, most beautiful interface of any broker I've used. The attention to detail is incredible. Stock prices going down show red indicators, going up shows green. You can slide through different time periods smoothly. It's those small touches that make the experience enjoyable.
They offer commission-free ETFs and have a great selection of instruments, though not everything I want is available. For example, my SPY5 ETF isn't listed there, but they have great alternatives from BlackRock and other providers.
Like the others, they don't currently offer native portfolio transfers, but the user experience is so good that I hope they expand globally soon.
My Multi-Broker Strategy in Action
Here's how I actually use these brokers in practice:
Interactive Brokers: My main long-term holdings and larger investments. This is where I keep the majority of my wealth because of their track record and flexibility.
Trading 212: Perfect for smaller, regular investments and taking advantage of the interest on cash. The zero commissions make it great for dollar-cost averaging.
eToro: I use this for specific investments and to take advantage of the club benefits. The instant deposits make it perfect for when I want to invest quickly.
| Broker | User Interface | Commissions | Portfolio Transfer | Cash Interest | Best For |
|---|---|---|---|---|---|
| Interactive Brokers | Complex, overwhelming | $1+ per trade | Full in/out transfers | €10k+ only | Large portfolios, international moves |
| Trading 212 | Beautiful, intuitive | Zero on stocks/ETFs | Limited options | 4.1% USD, 4.35% GBP | Beginners, regular investing |
| eToro | Clean, balanced | Free ETFs, small stock fees | No transfers out | Yes (club members) | Club benefits, instant deposits |
| Lightyear | Most beautiful design | Free ETFs, small stock fees | No native transfers | Not available to me (UAE) | EU/UK investors, great UX |
Should You Use Multiple Brokers?
You don't need to copy my exact setup, but I definitely recommend having at least two brokers. Here's why:
Start Small: If you're just beginning, maybe start with one broker that suits your needs best. Trading 212 or eToro might be better for beginners due to their interfaces and zero commissions.
Add a Second: Once you have a decent portfolio size, consider adding a second broker for diversification and to access different features.
Think About Your Future: Consider where you might live, how much you'll invest, and what features matter most to you.
The Bottom Line
There's no perfect broker right now, and that's exactly why I use multiple ones. Each has strengths in different areas, and I want to maximize the benefits I get from all of them.
Interactive Brokers gives me security and flexibility. Trading 212 provides a great user experience and zero fees. eToro offers unique benefits and instant deposits. Together, they create a system that works better than any single broker could alone.
The slight extra complexity is worth it for the peace of mind, better features, and protection against any single platform having issues.
Frequently Asked Questions
Q: Isn't managing multiple brokers complicated? A: It's not as complicated as you might think. I use portfolio tracking tools like Delta Pro (which I get free through eToro Club) to see everything in one place. The extra features and security are worth the minimal extra effort.
Q: How do you decide which broker to use for each investment? A: I use Interactive Brokers for my core, long-term holdings. Trading 212 for regular smaller investments due to zero fees. eToro for specific opportunities and when I need instant deposits.
Q: Do you pay more in fees using multiple brokers? A: Not really. I choose brokers with competitive fees for what I'm doing. The zero-commission brokers actually save me money on smaller trades, while Interactive Brokers' fees are negligible for larger investments.
Q: What if one broker goes out of business? A: That's exactly why I diversify. All my brokers have investor protection, but having multiple means my money isn't all locked up if one has issues. It's like insurance for your investments.
Q: Should beginners start with multiple brokers? A: I'd recommend starting with one broker that suits your needs, then adding others as your portfolio grows. Trading 212 or eToro are great starting points due to their user-friendly interfaces.
Q: How much should I keep in each broker? A: There's no perfect formula. I keep the majority in Interactive Brokers due to their track record, but spread enough across others to access their unique benefits. Start with one and gradually diversify.
Q: Can I transfer stocks between these brokers? A: It depends on the broker. Interactive Brokers allows transfers in and out. Trading 212 has limited transfer options. eToro currently doesn't allow transfers out. This is another reason to diversify rather than going all-in with one platform.
Risk Disclaimer: Investing in stocks, ETFs, and other financial instruments carries risk of loss. The brokers mentioned in this article are platforms I personally use, but you should do your own research and consider your financial situation before investing. This content is for educational purposes and not personalized financial advice.
Why I Use Multiple Brokers (And You Should Too)
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