Global Brokerage Inc. (GLBR)

[George the Greek]

Not understanding their business model...

About the leverage:

In the U.S., the CFTC allows leverage of 50 to 1. Most of FXCM’s customers are overseas, where regulators allow leverage of as much as 200 to 1.

A curious policy:

FXCM’s woes were amplified by a curious policy: When investors lose more than they have in their accounts, it doesn’t try to collect. As the company says on its U.K. website, “Is there a debit balance risk? Can I lose more money than I deposit? Not with FXCM. It is FXCM’s policy to credit accounts to a zero balance when debit balances occur as a result of trading.” Such leniency is not universal in the industry.

So customers are guaranteed against losses?
Something smells fishy here.

http://www.businessweek.com/articles/2015-01-22/currency-broker-fxcm-crippled-by-leverage-in-swiss-shock