{"id":1567,"date":"2009-09-09T13:46:20","date_gmt":"2009-09-09T21:46:20","guid":{"rendered":"http:\/\/www.tradingheroes.com\/?p=1567"},"modified":"2025-07-30T03:04:03","modified_gmt":"2025-07-30T10:04:03","slug":"the-beauty-of-sub-accounts-in-forex-trading","status":"publish","type":"post","link":"https:\/\/www.tradingheroes.com\/the-beauty-of-sub-accounts-in-forex-trading\/","title":{"rendered":"The Beauty of Sub Accounts in Forex Trading"},"content":{"rendered":"

Note: This article was originally written on Sept. 9, 2009. Some information on brokers may no longer be true.\u00a0<\/strong><\/span><\/p>\n

Since the NFA changed it's rules on FIFO and hedging Forex<\/a>, we are not able to take opposite trades in the same currency pair, in the same account. I did get a couple comments on this blog about how it's unfair and how the ‘man' is trying to screw them, boohoo, blah, blah, blah.<\/p>\n

This didn't bother me at first because I never hedge just for the sake of hedging. I believe that hedging can work for some people, but many times it's just a sign of indecision.<\/p>\n

However, during the course of normal trading, I have realized that there are times when I see a good scalp trade in the opposite direction of my longer term position. Having only one account with the new rules does not allow me to take that second trade.<\/p>\n

So what is the answer? Cry about it to anyone who will listen?<\/p>\n

Of course not…<\/p>\n

\"Trader<\/p>\n

Why You Should Use a Forex Sub-Account<\/h2>\n

Just open a second account or a sub account, depending on your broker. It may be more beneficial to open an account at another broker just so you have a backup in case your primary broker is down for some reason.<\/p>\n

However, if you are strictly using a hedging strategy, a sub account would probably be best because there will probably be a variance in spreads between brokers, which will eat into your profit.<\/p>\n

Oanda features sub accounts so I can trade in different accounts on the same screen. Makes it very simple but you have to weigh the pros\/cons of each broker. Your needs may be different from mine.<\/p>\n

For example, Oanda has really tight spreads, allows variable lots sizes and is a reputable company, that is why I execute most of my trades with them.<\/p>\n

The downsides are that they don't use the MT4 trading platform so I can't use any auto-trading programs in that account and their leverage is very low (compared to other retail brokers), only 50:1. That is fine for ordinary trading, but for more aggressive techniques, I need much bigger leverage.<\/p>\n

For those reasons, I opened an Alpari-US account and will be reopening an IBFX account. The Alpari account uses MT4 and and pretty tight, stable spreads, so that is good for trading an autotrader program.<\/p>\n

The IBFX account offers up to 400:1 leverage so that is what I need to trade the Counter Trend System. In this system, it is more important to me to have big leverage than to have the tightest spreads to avoid margin calls.<\/p>\n

Conclusion<\/h2>\n

As you can see, sub accounts and multiple accounts can be VERY useful.<\/p>\n

They are not only good for hedging, but can exploit the strong points of a broker, depending on your needs. I think the only people complaining about the new NFA rules are the people NOT making money.<\/p>\n

I hope your trading is going well!<\/p>\n

Update:<\/strong> Since this post was originally written, I've developed a hedging<\/a> strategy. You can learn about it here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Learn how broker sub-accounts can help you manage trading risk and hedge trades. This can improve your trading results and hedge your risk. <\/p>\n","protected":false},"author":2022,"featured_media":1019799,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[204239],"tags":[736,919,616],"class_list":["post-1567","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trading-education","tag-forex-brokers","tag-hedging","tag-trading-risk-management","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"yoast_head":"\nThe Beauty of Sub Accounts in Forex Trading - Trading Heroes<\/title>\n<meta name=\"description\" content=\"Learn how a sub-account at a Forex broker can help you limit your risk and increase your profits. 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