I’ve noticed that spreads on every broker seem to expand when big economic announcements drop. I’m trying to understand if XM is worse than other platforms I’ve used, or if this is just how forex markets work during news events.
I’m asking because I sometimes trade around news releases and I need to know if the cost spike is manageable or if I should just avoid trading at those times. Someone mentioned that using rebates through GlobeGain can help offset some of that spread cost, but I’m not sure how much difference it actually makes.
Do your spreads on XM widen more than on other brokers you’ve tried? And realistically, how wide do they get during something like a non-farm payroll release or ECB announcement? Is it tradable or does it just break your strategy?
Spread behavior during news is mostly venue dependent, not broker dependent. XM passes through liquidity from their providers, so they widen when liquidity dries up market-wide.
EUR/USD typically goes from 1.2 pips to 2.5-4 pips during major releases. That’s standard across most brokers. GBP pairs can hit 5-10 pips easily. Exotics worse.
Now here’s what matters: your rebate percentage. If you get 0.5 pips back per trade through GlobeGain, suddenly a 3 pip spread costs you 2.5 effective pips. That shifts the calculation.
Best strategy for news trading on XM: place orders before the announcement when spreads are tight, or trade during calmer periods. Don’t chase wide spreads. Track your actual execution costs for a month to see if XM’s prices align with their competitors.
EUR/USD goes from around 1.2 pips to 2.5-3 pips when news hits. That’s pretty normal. GBP and other pairs get hit harder.
Honestly, I stopped trying to trade right into news events. The spread cost plus slippage just eats into any potential profit. Better to wait 5-10 minutes after the release when liquidity settles again.
The rebate thing does help though. If you’re getting cashback, even 0.3 pips back adds up over a month of trading. It’s not huge but it’s real money. With GlobeGain tracking, you can see exactly how much you’re actually making back versus just staring at the raw spread numbers.
Spreads widen during news on every broker. XM probably similar to others. Avoid news trading if tight spreads matter to you.
Spreads triple during major news. Same on any broker.
So I actually track this because I sometimes trade news events. On XM, EUR/USD normally sits around 1.2 pips, but when something like NFP or ECB decisions come out, it jumps to 2.5-3.5 pips within seconds.
I’ve tried other brokers and it’s pretty similar honestly. The thing that helps is using the rebates. Even if you’re only getting 0.3-0.5 pips back on every trade, that adds up if you’re doing this regularly.
For me, the better strategy is just waiting a few minutes after the announcement to trade when spreads normalize. But if you’re committed to news trading, at least make sure your rebate percentage is decent to offset some of that cost.