We continue to review some of the features of the brokerage company Larson&Holz. And today we will talk about the inactive trading accounts of the client and the characteristics of interest charges.
Let’s start with inactive trading accounts. First, what are inactive accounts. It is easy to guess that an inactive trading account is the absence of any action. For example, a client opens a trading account. It does not matter what type it is. The deposit is entered a certain amount of money. The amount, in fact, is not fundamental. It can be 100 dollars. And maybe 1,000 dollars. After the deposit is replenished, the trader does not commit any actions. No open orders, or transfer of funds from one trading account to another. The reasons can be a lot, starting with the usual fear of opening a deal, and ending with the expectation of what is unclear. This also happens. Previously, such accounts could have lasted for a long time. Up to several years. But Larson&Holz introduced some changes regarding inactive trading accounts. The changes were introduced in early 2012. Employees of the company notified the owners of accounts that they are subject to reconstruction. Thus, the company warned its customers about the inexpediency of their maintenance and service. There were two options. The first option: The client had to either trade on this account, or withdraw from it available funds. The second option: Funds from an inactive trading account must be transferred to the main account, if available, or withdrawal of funds from the account. Otherwise, the inactive account is subject to reconstruction. But to whom do inactive accounts interfere. The fact is that any trading account is registered as a margin account, and the brokerage company is forced to pay a certain percentage on the fact of the amount of the trading account. In some ways, the brokerage company monthly deducts the interest on the balance of free account funds. In this case, the broker’s commercial interest is affected. In fact, this is what all brokerage companies do, and LH-Crypto is no exception. It’s clear, if the client actively trades, the company is working on the profit from the spread. But if the trading account is literally hanging around, the broker is forced to service it. The fact of having such an account imposes a cost on the broker. Well, the changes themselves. The brokerage company Larson&Holz notified its customers that the life of the inactive trading account is six months. If during this period the trading account is not involved, a deposit of $ 25 per month will be withheld from the deposit. That is, every month a penalty fee is withdrawn. But this does not apply to all inactive trading accounts. If the amount of such an account is more than 2,500 dollars, the commission is not withdrawn. This also applies to those accounts on which during a month there was at least one transaction with the volume of 3 full trading lots. But there is one more condition. If the account balance is less than $ 150, the account will be terminated. That is, actually blocked for the client. But the lock is superimposed only on this account. All other functions are available for the client. The company Larson&Holz was forced to take such measures. But left the opportunity for the client to unfreeze it. The client needs to contact the technical support of the brokerage company, and create a request to unblock this account. With regard to trading accounts that were opened in the company’s representative centers, the deposit must be at least $ 10,000. Only in this case, it is not subject to commission fees.
Another feature of the company Larson&Holz – interest on the deposit. In other brokerage companies this service is not available, and is not expected. This is a unique service of its kind – InterestRate. What is its uniqueness. The company Larson&Holz charges 10% per annum for each trading account. Naturally, accrual is carried out only on accounts on which trade is conducted. Think about it, 10% per annum, are equal to the same banking rate on the deposit. In fact, we get a guaranteed profit, but not in rubles, as suggested by the bank, but in dollars. But here, too, there are several rules that the client must take into account. The free amount of money must be at least $ 1,000. In other words, an order can be opened, or even a series of orders, but if there is more than the specified amount on the balance sheet, it already participates in the stock. Also, an obligatory condition is the activity of the account. The same trade, for example. In principle, to obtain 10%, the above conditions must be met. But if the size of the deposit is larger, then the percentage will be greater. This service can be called a safety tool. If the trader has an unsuccessful period in the trade, the percentage charged to him can be called the compensation of losses. So here we see a double benefit. In the first case, the net profit. In the second case, compensation for the loss received. But it must be borne in mind that these 10% are disproportionately divided into twelve months. And the monthly interest varies. Therefore, at the end of each month, completely different amounts are obtained. The trader will find them by the entry in the magazine, in which the accrued interest will be indicated. After the interest is accrued, the trader can use it to his advantage. He is his personal asset.
Based on this, we can conclude that the company LH-CRYPTO rather loyal to its customers. This positively influences the course of further work.