I’ve been reading about spreads widening during major economic news releases, and I’m not sure if this is something I need to factor into my broker choice as a beginner, or if it’s overthinking it.
Like, if a broker advertises 1.0 pip spreads, does that mean I’ll see 1.0 pips all the time? Or do spreads expand to like 5 pips during NFP releases and I just have to accept that?
I’m planning to mostly trade during calmer market hours anyway, so should I even test how brokers perform during volatile news? Or is that more relevant if you’re a day trader trying to scalp news announcements?
I want to pick a broker that gives me consistent trading conditions when I’m actually going to be trading, not worry about edge cases that don’t apply to my strategy. But I also don’t want to pick a broker that looks good in calm markets and then falls apart during volatility.
How much does spread behavior during news actually matter when you’re just starting out, and what’s the best way to evaluate this without overthinking it?
Test it, but maybe not for the reason you think.
Yes, spreads widen during news. That’s normal everywhere. The real question is how your broker handles order execution during news. Some brokers expand spreads from 1.0 to 3.0 pips during volatility. Others expand to 8+ pips. Some reject orders entirely until volatility settles.
If you’re not scalping news, this matters less. But here’s the thing: even if you don’t trade news intentionally, markets get volatile and you might need to exit a position during unexpected news. You want a broker that handles that reasonably.
During demo testing, place orders during a major news release. See what spreads you actually get and whether your orders execute at all. If the platform refuses everything during volatility, that’s a problem. If spreads expand reasonably, that’s normal.
Don’t trade news as a beginner, but know your broker won’t abandon you if it happens.
The kind of broker that advertises 1.0 pip spreads usually means average spreads outside news times.
During news, all brokers experience spread expansion. It’s market-wide, not broker-specific. The difference is how much they expand and whether they execute your order at the expanded spread or reject it.
For a beginner, what matters more is consistency during normal trading hours. If you’re trading during steady market conditions, focus on how the broker performs then. News volatility is secondary.
I tested this when I was choosing my first broker and it helped me feel more prepared.
I placed a few orders during a scheduled news release just to see what would happen. The spreads did get wider, but orders went through. Knowing that ahead of time meant I wasn’t shocked if I ever needed to exit during volatility.
I didn’t change my trading around news times, but I felt better knowing how the platform would respond if I had to.
Spreads widen during news everywhere. Just test it once during demo.
Test one news release during demo. See how spreads react.