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We heard from some of you, HSX will introduce a Service Fee for Inactivity

Posted by: Antibody on Dec 15, 11:58

The Hollywood Stock Exchange has been open for 28 years, and we appreciate everyone who started an account and continues to trade to this day. There have been many though who have come and gone, leaving their accounts dormant. Although HSX has had its ups and downs, the economy has only grown to a market value of H$20.5 Trillion, with H$16 Trillion in cash. Much of the uninvested cash lies in dormant accounts, which continue to accrue daily interest. In order to curtail their growth, HSX will be ending daily interest in 2025.

HSX wants to ensure that accounts remain active and engaged in the market. A dynamic HSX offers the best possible experience for all traders. To encourage more trading and stimulate the market, HSX is introducing an inactivity fee. If an account does not have a Buy, Sell, Short or Cover transaction for 30 days, an inactivity fee will be assessed at 1% APR of the uninvested Cash Balance. To avoid the inactivity fee charge, simply make at least one trade every 30 days.

Think of the inactivity fee as a negative daily interest. For a portfolio with a H$2M cash balance, that comes out to:

-1% * H$2,000,000 = H$20,000 / 365 = -54.79 per day

As the cash balance decreases, so would the daily interest. The inactivity fee over a year would actually be less than -H$20,000 if an account was inactive for 365 days.

We recognize that this is a significant change, and we hope that in time, you'll understand and appreciate the positive benefits of a more active market. It may even be easier to pass dormant accounts and move up the Leaderboard.

Here’s the schedule timeline:

On December 31st, the Interest Rate will be set to 0% and the daily interest deposit will cease.

On January 1st, an Inactivity Fee will be set to -1%. However, your account will not be assessed the negative daily interest if a trade has been made during the preceding 30 days.

We heard from some of you, HSX will introduce a Service Fee for Inactivity Antibody Dec 15, 11:58

Delta House tries to be fully invested.The brotherhood wishes it could do more with its cash. No strong objection to Antibody's SenJohnBlutarsky Dec 15, 13:40

Why not seriously consider unlimited position sizes? The market will adjust. ndmaster Dec 15, 13:53

Ending daily interest punishes active managers who have worked to build up their portfolios over the (in my case 20) years {nm} SirWinstonNewkirk Dec 15, 15:20

In my case that would be at least $16,000,000 over the next year {nm} SirWinstonNewkirk Dec 15, 15:23

You could be earning $16,000,000 (at least, if not close to twice that much) a week {nm} SenJohnBlutarsky Dec 16, 11:39

THANK YOU for Eliminating Daily Interest (Set to 0.00% on December 31, 2024). Have been Calling for its Elimination since 2014. {nm} THE_ROTO Dec 15, 16:42

Daily Interest Primarily Benefitted the MEGA-BILLIONAIRES & Added Nothing to the HSX Game. {nm} THE_ROTO Dec 15, 16:43

brb converting my port to cash to max out on free money for two weeks {nm} Noah66 Dec 16, 10:17

What free money? {nm} SenJohnBlutarsky Dec 16, 11:38

Exactly. Charge your account 1% of traded value for 0.25% per year. Great trade idea, Noah66... {nm} ndmaster Dec 16, 13:22

Good work guys, you got the joke {nm} Noah66 Dec 18, 07:45