Can You Own the Same Stock in Multiple Brokerage Accounts?

    If you have multiple brokerage accounts you may be wondering what kind of trades you can make on each account, and can own the same stock in multiple brokerage accounts?

    Yes, you can own the same stock in multiple brokerage accounts, and there are several advantages to doing so.

    Can you buy the same stock on different apps?

    Yes, you can buy the same stock in two or more different apps or brokerage accounts. In fact, having multiple brokerage accounts can be very advantageous. It is a simple way to keep two different portfolios entirely separate, and you can also take advantage of brokers with lower fees.

    Can you own the same stock in two different accounts in the US?

    In the US there is no law preventing investors from owning the same stock in different brokerage accounts. Therefore you can buy the same stock in different brokerage accounts. There is no SEC regulation that prevents investors from investing in the same stock using more than one brokerage account.

    Can you own the same stock in multiple brokerage accounts in Canada?

    There is no law prohibiting investors from investing in the same stock using different brokerage accounts. According to the rules of the Canadian Securities Association (CSA), investors are able to invest in the same stock across different brokerage accounts.

    Can you own the same stock in multiple brokerage accounts in the UK?

    In the UK there are also no restrictions when it comes to owning the same stock in multiple brokerage accounts. According to the Financial Conduct Authority (FCA), investors are allowed to invest in the same stock using two or more brokerage accounts.

    Can you own the same stock in multiple brokerage accounts in Australia?

    Yes, you can own the same stock in different brokerage accounts. According to the Australian Securities and Investment Commission (ASIC), there are no restrictions when it comes to buying the same stock in different investment accounts.

    Can you buy the same stock twice?

    Yes, you can buy the same stock multiple times. There are two common investing strategies that involve buying a stock multiple times – averaging down and averaging down.

    Some investors even take a dollar-cost averaging. This involves buying a fixed amount of dollars of different stocks in the portfolio daily, weekly, or monthly

    This allows you to invest a fixed amount of dollars frequently, and it is a good way to lower the cost basis of the stocks in your portfolio. 

    Advantages of buying the same stock in different brokerage accounts

    There are several options to having multiple brokerage accounts, and even holding the same stock in multiple accounts. Here are some of the main advantages:

    • It is easy to divide different portfolios
    • You can take advantage of lower fees
    • Avoid having to pay stock transfer fees
    • Take advantage of what your brokers offer

    It is easy to divide different portfolios

    One of the best advantages of buying the same stock in multiple brokerage accounts is that you can divide different portfolios. For example, if you have a portfolio where you want to invest for retirement, and another one more focused on the short-term, you may want to add the same stock to both portfolios. 

    Another situation is if you have a joint portfolio with your spouse and a personal portfolio. You might find a stock that is an attractive investment and you want to add it to both accounts.

    You can take advantage of lower fees

    Taking advantage of lower fees is a great way to ensure you save money while investing. One way of doing this is by buying the same stock with different brokers. 

    If you already have a brokerage account, and when you open a new account with a discount broker. You might want to add more to your stock, but pay lower fees, while keeping the shares in the first account.

    Avoid having to pay stock transfer fees

    If you want to change brokerage accounts, but you want to avoid having to pay stock transfer fees between brokers, you might want to buy the same share in the new brokerage account.

    Take advantage of what your brokers offer

    There is also another advantage of having multiple brokerage accounts, which is to take advantage of what your broker offers. Some brokers offer research and even recommendations. You might want to take advantage of that.

    Disadvantages of buying the same stock in different brokerage accounts

    There are also a few disadvantages of owning the same stock with different brokers, such as:

    • You might not be diversifying enough
    • You may be paying too much in fees 
    • It can be difficult to track two portfolios 

    You might not be diversifying enough

    If you own the same stock in at least two different accounts, you might not be well diversified. Although there are clear reasons why a concentrated portfolio is more likely to outperform, it also carries higher risk, and tends to be more volatile.

    The fees can eat your portfolio

    Another thing you have to be careful when you own the same stock in two different brokerage accounts is that the fees you will pay may be higher. This can have a significant impact in your portfolio, and it might even affect your returns. 

    It can be difficult to track two portfolios 

    Finally, it can be challenging to track two or even more portfolios at the same time. You will have to log in to different accounts. This gets even more difficult to do if you check your stocks multiple times a day.

    Conclusion

    Having multiple brokerage accounts can be a great advantage for some investors, and you can buy the same stock across all of the brokerage accounts you have. 

    If you are managing two or more portfolios and you want to add a specific stock to all the portfolios you can do it. Just make sure you keep track of the fees and expenses, to avoid overpaying fees.

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