Spread Your Risk In Case It Is A Scam
You know that some forex brokers especially if you are trading with an unregulated forex broker or even a "regulated" forex broker, could do something to your money such as run away with your money and be happy to be able to take your money. This is why you have to spread the risk in case something like this happens to you by spreading your money to more than one forex broker.
Your Broker Might Do Something "Funny"
What I mean by funny is that some forex brokers would do something to your account to make you lose such as stop hunting which according to Banton (2021) could force forex traders to hit their stop loss by driving the price of a particular asset. This could be seen, for example, you set a stop loss in EUR/USD pair at 1.2000, after sometime later, your forex broker knows that you are opening a big position and you know what is going to happen is that your forex broker would drive the price to 1.2000 so that you would hit your stop loss and then after you hit it, the price would go back to its normal state. This is what stop hunting is.
Compare The Benefit And The Shortcoming Among The Forex Brokers
Comparing one forex broker with other forex brokers is good to do because when you do that you would know for sure that many things differ from each of them. For example, I want to know which has the lowest spread offered by which forex broker and if I trade with 2 or 3 forex brokers, then, I could compare them by looking at the spread price of a particular asset that I choose to see. And also you could compare them if there is a shortcoming of your forex brokers like high commissions or other hidden charges you do not realize.
Conclusion
So to sum up, diversifying your money to other forex brokers are good to do because this could minimize the risk and spread your risk of losing your money whether your forex broker like to do stop hunting to your account or even other "dirty things" like run away with your money, so it would prevent you from "sneaky" forex brokers just like an adage of "Do not put your eggs in one basket" is related to this. Aside from that, there is also a benefit you could gain by spreading your money with more than one forex broker in which you could compare which forex broker has the lowest spread and which has the highest commissions.
Written by Andre I.
Reference
Banton, Caroline. 2021. Stop Hunting. Retrieved from Investopedia. (Accessed 3 February 2022): https://www.investopedia.com/terms/s/stophunting.asp#:~:text=What%20Is%20Stop%20Hunting%3F,to%20set%20stop%2Dloss%20orders.