Dormant Accounts - new inactivity fee

[trilobite]

I've just received a couple of emails from Darwinex about new Terms and Conditions effective 24th July 2023
Important points to note:
€10 monthly inactivity fee for dormant accounts.
Inactive trading accounts will be closed.

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Client Agreement - extract

27 ACCOUNT INACTIVITY

27.1 Where you are a client of ours:

27.1.1 for an XO Service, we will consider Trading Accounts inactive if they have not held an open position within the previous 12 months

27.1.2 for a Managed Service, we will consider Trading Accounts inactive if they have not been invested in an Active Strategy within the previous 12 months

27.2 Should we determine that a Trading Account is inactive:

27.2.1 where the Trading Account is under our XO Service:

(a) any monetary balance will be transferred from the Trading Account to the Wallet

(b) the Trading Account shall be closed

If you have no active Trading Accounts under any of our Services you will be charged a €10 per month account maintenance fee. This fee will be deducted monthly from your Wallet balance until either the balance reaches zero, you resume trading or investing or you withdraw your funds.

 

[IlIlIlIlI]

If you have no active Trading Accounts under any of our Services you will be charged a €10 per month account maintenance fee.

So nothing happens if you have 1 (one) account with activity in the last 12 month.

IMO the agreement is written a little bit chaotic.
I just asked whether they want to attempt to take fees for dormant portfolios (is that what they mean as Managed Service ?) which cannot be deleted until now

I'm also not assumed that the change shall be effective in less than a week and they did not add a summary of the changes.

 

[trilobite]

So nothing happens if you have 1 (one) account with activity in the last 12 month.

I'm not sure, my reading is that if you had, for example 4 trading accounts, only one of which had been traded in the past year, no fee would be payable, but the 3 inactive accounts would be closed. This could be a problem, as you would lose all the history and "experience" on the inactive accounts. So if they were Darwin linked, and you were just taking a break from trading, they would be gone, along with their Darwins, so you would have to start from scratch, rather than just resume trading at some later time. I don't know if that would be the case or not

 

[IlIlIlIlI]

I'm not sure, my reading is that if you had, for example 4 trading accounts, only one of which had been traded in the past year, no fee would be payable, but the 3 inactive accounts would be closed. This could be a problem, as you would lose all the history and "experience" on the inactive accounts. So if they were Darwin linked, and you were just taking a break from trading, they would be gone, along with their Darwins, so you would have to start from scratch, rather than just resume trading at some later time. I don't know if that would be the case or not

You're right - and I remember more than one trader with accounts which were reused after more than 12 months.

My "nothing happens" was only meant for charging the inactivity fee.

I also see it critical that they transfer the balance and charge the inactivity fee if they will do it without an earlier notification so that the trader could make a decision about this account.

 

[IlIlIlIlI]

It looks like they also want to charge inactive portfolios which cannot be deleted .. hmm .. I'm curious if they will delete them now.

I just asked whether they want to attempt to take fees for dormant portfolios (is that what they mean as Managed Service ?) which cannot be deleted until now

This is the answer I got:
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As long as you have any of the portfolios active, i.e. capital invested in an active DARWIN in any of your portfolio, we consider that you are active in our managed service.
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[Captain Currency]

How do you delete a portfolio account?

I just see these 4 options;
Add Funds
Withdraw Funds
Rename
Change Max Risk

 

[CavaliereVerde]

There is no way to delete a portfolio.
I asked it to Ignacio 3 years ago, just after the introduction of multiple portfolios and he answered they were working on it.
BTW there is no reason to delete an investor trackrecord, you connot "sell" it as a Mendel.
You can recreate and reneme a portfolio whenever you want but there is no way to delete its past performance.

 

[IlIlIlIlI]

I asked Darwinex months ago whether it is possible to delete a portfolio as I wanted to open a fresh one for my investment in MOT.
It was not possible and I had to take one of the five existing ones which where all empty.

On Wednesday I asked them again (after receiving the inactivity fee mail) and I got this answer (before the other answer quoted above):

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"I am afraid that currently, it is not possible to delete, remove or hidde inactive investor portfolios.
We are working in a new investor's site and it is likely that the function you indicate will be added."
---------------

 

[CavaliereVerde]

We are working in a new investor's site

Marketing and customers segmentation.
Once upon a time there was "traders movement" where traders investors and broker were rowing in the same boat to make money beating the market.
Now we have different products for different customers, the trader-investor will be an exception.
We are already experiencing more gamification for traders with the latest updates on Darwinia and with DarwinexZero.

 

[IlIlIlIlI]

They are cleaning up their platform with the new agreement.

27.2.2 where the Trading Account is under our Managed Service
(a) any investments in an Inactive Strategy will be closed
(b) any monetary balance will be transferred from the Trading Account to
the Wallet

So they remove investments on inactive Darwins.
I assume they will also close the Darwin (which cannot be reversed) if they close the inactive trading account under 27.2.1 (b) quoted above by @trilobite.

The infamous history of HFD, FSK and others is more hidden if the Darwin is closed.
Besides in the hall of fame.