Master, is a broker regulated by a credible Australian body can scam? IC Markets pair XAUUSD on 26-03-2020 at 07.00 server time, the price dropped from 1603 to 1500 within 1 minute. Is this normal, considering that other brokers did not experience a drop? Does this qualify as a scam or fraud? Thank you.
To Budi Setiawan,
“Master, can a broker regulated by a credible Australian body scam?”
Usually, brokers that are already regulated by a trusted regulatory body rarely take scamming actions or other actions that violate the regulatory body's regulations. Because if a broker that has been regulated by a trusted regulatory body (in this case regulated by ASIC) is caught red-handed committing fraud or violating the rules, and the truth of it has been proven, then severe sanctions will be given to the broker in question.
"...pair xauusd date 26-03-2020 server time 07.00 price within 1 minute dropped from 1603 to 1500 is this normal whereas other brokers did not have a decline?"
Regarding this, it is usually caused by an error on the broker's server or the occurrence of delay quotes from the liquidity provider. For a more detailed explanation, please ask the broker in question directly, including a screenshot of the chart in question.
“is this considered a scam/fraud?”
Regarding the unusual chart movement, it is not yet possible to label the broker as a scam broker. It would be premature to immediately judge the broker as a scam broker just because of unusual chart movements. Because it could be due to technical errors or other errors that can be explained and accepted logically.
However, if you frequently encounter this problem, then it could be that the broker is trying to cheat clients/traders by manipulating prices or stop loss hunter. Therefore, you should be vigilant and start questioning the credibility of the broker in question.
Hopefully this can help.