Leverage does not control the loss on your account.
It simply determines margin needed to open and maintain position.
Agree with you. 100%
People think small leverage so you lose and earn more slowly, but in fact you either lose time, because you can earn normally with such an account only after a long time, if you can.
In this case it will be more profitable to put this amount in a bank.
Either you lose a lot of money, because, as you said, you need to put a large amount for trading.
As a result of these restrictions, they simply throw out smaller players from the market, leaving only large ones.