Facts About Merging Brokerage Accounts

Many investors always look for ways to diversify their investments. They may achieve this through brokerage accounts found in financial firms, enabling you to sell and buy assets like mutual funds, exchange-traded funds, bonds, and stocks. They are usually used as a means to invest for long-term goals but can also be used for short-term profits and trade. According to Forbes, you can get a brokerage account from managed accounts, Robo-advisors, and online brokers. For a person who is self-directed, the best route to take is online brokers since even a beginner can manage to navigate the systems. A perfect example is an online brokerage in Hong Kong, where people get the best costs and interact with remarkable trading platforms like MoneySmart.

They are among the best in brokerage services and guarantee the best plans for your investments. You might have already tried a brokerage account, and since many investors love diversity, you could be having two or more accounts. However, have you ever considered the fact that you could do much more if you merged them? Below are three facts about merging brokerage accounts that will make you consider the choice.

  1. You can manage your assets easily

When you have several brokerage accounts, you may get to a situation where your assets overlap and your investment strategy becomes more tedious. Trying to develop the best strategy with such a view of your investment becomes an uphill task which you will always fear. Merging brokerage accounts enables you to view your investments holistically, and hence, you can easily plan for them. With a more realistic view of your account, strategize on the right measures or plans to consider for maximum gain from your investment. Eventually, you will be in complete control of your asset allocation. This also works best in terms of retirement planning since you can rebalance whenever there is a need. For instance, since you need a diversified portfolio, you could have bonds, ETFs, fidelity, and non-fidelity funds. One big account makes it easy to balance your investment in each and adjust according to current conditions.

  1. Financial benefits are higher for merged accounts

When you merge your brokerage accounts, you simplify your brokerage investment in one big account. Such an account opens tremendous cost benefits for you. To begin with, your investment company gives you the privilege of accessing lower-cost mutual funds. Managing one account is relatively cheaper compared to several accounts with different investors in terms of money and time. In many financial institutions and investment organizations, large accounts attract bonuses and discounts. When you invest large amounts in a financial institution, you get more attention because they wish to retain you as a client. Therefore, merging brokerage accounts gives you the chance to consolidate your funds into a significant amount and attract discounts and bonuses. Trading commissions are constant despite the number of shares sold or bought. Therefore, merging your accounts helps you escape too much commission since you do your commission payment only once.

  1. Merging is a safety net in case of disaster

Some of the things we go through in life are unavoidable, for example, accidents. Insurances are normally present for such incidents to ease the burden for you. When it comes to brokerage accounts, you might risk loss and mismanagement if something were to force you to delegate to a successor like a son or a daughter if your accounts are too diversified. Merged accounts have the opposite effect. They make it easy for anyone to cover for you and for you to delegate instructions on the best way to handle the investments while you are away. Death is inevitable, and you wouldn’t also wish that your lifelong investments benefit the banks instead of your generation.

Even though people always emphasize that it is dangerous to put your eggs in one basket, having one major point of focus will help you consolidate your energy in a manner that pushes for benefits and removes chances of stagnation or slow growth. Merging your brokerage accounts gives you the opportunity to easily monitor your progress and plan ahead. Most importantly, you can only make the right decision when you have a realistic view of a situation which is what merging your brokerage accounts aims to give you. For more advice on brokerage accounts and how to consolidate your investments for maximum returns, visit MoneySmart today.

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