I’ve been trading for a few months now, and I’ve noticed something that caught me off guard. When major news drops, spreads on some brokers seem to explode, and I’m paying way more per trade without realizing it. On one broker, EUR/USD went from 1.0 pips to 3+ pips during a CPI release. That completely changed the economics of my trade.
I’m trying to understand how real traders handle this. Do you just avoid trading during news events? Do you switch to brokers with better spreads during volatility? Or is there a way to anticipate which brokers will stay tighter and which ones won’t?
I also started paying attention to community posts about this. Someone mentioned that during the last major rate decision, GlobeGain rebates actually became more valuable because the wider spreads meant the cashback covered more of my actual cost. That made me think differently about rebates, not just as a discount but as protection against spread widening.
How do you handle trading during volatile news events? Do you have a list of brokers you trust to keep spreads more reasonable, or do you completely change your strategy on those days?
Avoid news events or use fixed spread accounts if available.
Some brokers spike spreads more than others consistently.
This is a real problem that impacts your bottom line directly. Most brokers widen spreads during news, but the magnitude varies. ECN brokers typically handle volatility better because their spreads are market-driven, not fixed.
Track spreads on 2-3 brokers during the same news event. Document exactly what happens to EUR/USD, GBP/USD, and one commodity pair on each broker. You’ll quickly see which ones have wider blowouts.
Your rebate becomes more valuable during these events. If you’re getting 0.4 pips back and spreads widen from 1 to 2.5 pips, your net cost is still lower than traders without rebates. Consider this when choosing between a low-spread broker with no rebate versus a slightly wider spread broker with GlobeGain cashback.
I’ve started tracking this too. On my main broker, spreads during news events are pretty dramatic, so I either wait until things settle or I reduce my position size during big releases.
Some traders switch to different brokers for news trading, but that seems complicated to me. I’d rather just trade less during volatile periods and focus on the times when conditions are more predictable.
Most brokers widen spreads during news. I just avoid it or trade smaller. Not worth the risk for me.
I track spread behavior across my brokers during major economic releases. The difference is noticeable.
My main broker stays relatively tight during news, which is why I stick with them. A secondary broker spikes hard, so I only use that one for less volatile conditions.
The rebate actually matters more during news events because the wider spreads make the cashback more significant to your actual cost. During a CPI release last month, my effective spread with rebates factored in was still lower than it would have been on a different broker without cashback.
I don’t avoid news trading entirely. I just size down and make sure I’m using a broker I’ve tested during volatility beforehand. You need to know which brokers stay stable before you need them.