I’ve noticed spreads moving all over the place when major economic news drops, and I’m trying to figure out if there’s a significant difference between brokers and whether it’s worth planning my trading around it.
The reason I’m asking is that I want to know if some brokers manage volatility better than others, and also how much the spread widening actually eats into my profits after GlobeGain rebates are factored in.
For example, with normal conditions on EUR/USD I might see 0.8-1.0 pip spreads, but during FOMC or major job reports it feels like everything explodes. I’m wondering:
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Which brokers seem to actually keep spreads tighter during news events?
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Does slippage get worse at the same time spreads widen, or is it just the spread itself?
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If I get cashback through GlobeGain, does that help offset the cost of wider spreads, or am I better off just not trading during news?
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Are there specific instruments or timeframes that hold up better during news volatility?
I want to make an informed decision about whether I should be trading through news events or avoiding them based on the actual cost difference.
EUR/USD spreads three pips during FOMC usually ECN accounts worse
Just don’t trade news if you scalp slippage kills your rebate
Spread widening during news varies by broker type. ECN brokers usually have tighter spreads to start, but they show raw market spreads, so widening is visible and often severe. Market makers smooth things out more but may quote worse prices.
For EUR/USD during FOMC, expect 1.5-3 pips from good ECN brokers and similar from market makers that quote well. Lower tier brokers can see 4-5 pips.
Slippage does occur alongside wider spreads. Your stop loss or entry order might fill 0.5-1.5 pips worse than the quoted price.
GlobeGain rebates help but don’t solve the problem. If you scalp, avoid news. If you swing trade, the wider spread on entry matters less over your holding period. Calculate: spread + slippage - rebate = true cost. If that exceeds your profit target, don’t trade that event.
Most brokers spread widens during news. Some worse than others. Rebates help but not enough if you’re scalping through volatility.
I’ve tested this extensively over the past year. Major news events like FOMC, CPI, and employment reports cause spreads to widen anywhere from 2x to 4x normal levels depending on the broker.
Exness, FxPro, and IC Markets handle it okay. Their spreads usually stay under 2-3 pips on EUR/USD even during volatility.
Slippage is the real killer though. I’ve seen my orders fill 0.8-1.2 pips worse than quoted, especially if you’re trading through the actual news release time.
GlobeGain rebates cover about 0.3-0.5 pips depending on your volume tier. So on a 2.5 pip spread, rebate brings it down to 2.0. Still wide, but manageable if you’re holding longer term.
My approach now is to trade the volatility fade, not the actual release. The real opportunity is usually 15-30 minutes after the number drops and volatility starts calming down. Spreads return to normal and execution quality improves significantly.