[dpaterso]

Hi,

OK:

This is for those who have asked about opening an account at GCI with LESS than the $2 000 minimum as required by them:

I have concluded my discussions with them and this is how it works:

1 - I will deposit $2 000 into an account IN MY NAME (I cannot trade this account nor withdraw the money from it until there are no other accounts 'linked' to it i.e. see below).

2 - You (the client) will open an account directly with GCI in your name BUT I have to be specified as the SECONDARY ACCOUNT HOLDER AND THE INTRODUCING BROKER. I'm sure you'll be happy to know that me as the SECONDARY ACCOUNT HOLDER is in 'name only' i.e. I cannot trade your account, deposit funds into your account, nor withdraw funds from your account but it is this 'link' that allows you to open an account with GCI with less than the $2 000 minimum as required by them.

That's the best that I and GCI can do for you.

I have investigated the possibility of reducing the leverage on their accounts from 200:1 to 100:1 and also 50:1 BUT it's NOT going to help you i.e. all this means is that instead of a lot costing you $50 (at 200:1) a lot is going to cost you $100 (at 100:1) or $200 (at 50:1) BUT the tick / pip values are the same as on a 'normal 200:1 account' and the profit / loss per tick / pip movement is not going to change regardless of the leverage setting. Interestingly enough they can 'bump up' the leverage to 400:1 and what this means is that instead of a lot costing you $50 (at 200:1) it now costs you $25 (at 400:1) so you have more margin available 'for error'.

Like I said before though: I am NOT recommending any of this i.e. you don't really have enough margin available 'for error' with $500 UNLESS you're going to trade ONLY forex pairs. Again: notwithstanding this agreement: THEIR minimum is $2 000 and MY RECOMMENDED minimum is $5 000. I'm prepared to put the 'deposit' up BUT 'be it on your own head' if you wipe out your $500 account trading Soybeans and they go 'limit down' like they did today!!!