When your strategy is to have TWO brokers who both have similar portfolios, the second broker becomes very important. Many US residents in the algo trading community use OX Securities. Finding a second broker that is easy to work with and allows you to transfer your money in a way that is comfortable for you, makes the “dual-broker” plan more complicated.

• Leverage: To be able to use algo trading bots (all of them I am aware of), leverage of 1:200 or greater is necessary. I am not aware of any US brokers that allow anything near this leverage.
• Not many brokers outside of the US want us: As I understand it, due to regulations many international brokers are not interested in providing US citizens trading accounts. Some within the community claim their are foreign brokers who will work with US traders if you ask them nice and have an inside contact.
• Documentation to Setup an Account: While I am setting up a corporate account, I frequently read stories of those who have trouble getting approved for their accounts. And, if you want to setup a corporate account, be prepared to provide LOTS of documents.
• Sending Money: While it is not impossible to find a broker that will accept both wire and ACH deposits, not all banks are willing participants in the process. If your broker requires Crypto, then you have an additional account to get set up.
• Taxes: Assuming you want to report income from your trading bot, the foreign brokers won’t be helping you. Yes, you should have access to reports that will provide your monthly income/loss. BUT, you won’t be receiving a tax document that is easily included with your tax filings. There are a variety of thoughts on how best to deal with this issue.

As I write this, I am on my second week of getting my corporate account approved with an additional broker. My business crypto account approval has stretched into its third week. If the accounts get approved, I can keep the momentum alive. If not, then I need to start the approval process again…