That is why you are often limited as individual trader to a relatively safe leverage level. Higher leverage is often possible if you post some collateral (often in the form of AAA/gov bonds).
The leverage level you are granted is often dependent on the asset class and your experience with it. FX being relatively low volatility, you can indeed get high leverage without too much scrutiny.
Overall it is a very lucrative business for brokers. The gathered funding fees are higher than the rare occasional losses. Pretty much like banks when doing loans.
In most cases no but after the Swiss franc crash event back in 2015, some brokers went bankrupt because the drop was so fierce and there was no liquidity available at some point to close the trades. Many traders suffered from negative account balances. Events like these happen rarely and they are called as "black swan".
That is why you are often limited as individual trader to a relatively safe leverage level. Higher leverage is often possible if you post some collateral (often in the form of AAA/gov bonds).
The leverage level you are granted is often dependent on the asset class and your experience with it. FX being relatively low volatility, you can indeed get high leverage without too much scrutiny.
Overall it is a very lucrative business for brokers. The gathered funding fees are higher than the rare occasional losses. Pretty much like banks when doing loans.