I’ve been watching my spreads more carefully during news events and they’re all over the place at both brokers. This matters because I actually trade during news releases sometimes, and the spread expansion can wipe out potential profits if you’re not careful.
With Axi, spreads on EUR/USD jumped from 0.9 pips to about 3.2 pips during the last Fed announcement. With Pepperstone, the spread went from 0.8 pips to about 3.8 pips on the same event. Both widened, but Axi seemed to recover faster.
I’m also wondering whether rebates help offset the spread expansion during these events. When spreads widen to 3+ pips, does the rebate structure still work in your favor, or does it become irrelevant?
I know some traders avoid trading during news altogether, but I see opportunities and want to understand what I’m actually paying when I take those trades.
Have you actually traded during major news events with either broker? What did the spreads actually look like and how much did rebates help?
Spread behavior during news is where you see real broker differences. Axi tends to expand spreads more conservatively but recovers quickly. Pepperstone widens more aggressively and takes longer to normalize.
Rebates still apply during wide spreads, so if Axi gives you 0.5 pips rebate, you get it whether spreads are 0.9 or 3.2 pips. The rebate is fixed per lot, not spread dependent.
Here’s the practical math: if you’re trading a 3.2 pip spread during news, your true entry cost is 3.2 minus the rebate. If the rebate is 0.5 pips, you’re paying 2.7 pips effective spread. That’s a real cost.
Most profitable news traders avoid the spike moments entirely. They wait thirty seconds after the announcement for spreads to normalize, then trade the actual volatility with normal spreads. This approach eliminates the wide spread problem completely.
Track spreads during the first minute and the fifth minute after major news releases. You’ll see Axi normalizes faster, which is valuable if you’re trading immediately after news drops.
Pepperstone’s spread recovery is slower, but only by a few seconds. If you’re waiting for volatility to develop, both brokers end up at similar effective spreads by the time you actually enter.
Rebates are fixed and apply regardless of spread width, so they don’t offset wide spreads any more or less during news. They’re constant.
The real strategy during news: don’t trade the initial spike. Wait for spreads to settle to two to three pips, then trade the volatility that follows. Both brokers behave normally by then.
I’ve traded through several news events on both brokers. Spreads widening is expected and both brokers widen their spreads similarly during major news.
What I noticed is that Axi’s spreads come back down faster. If the Fed announcement causes a 3.5 pip spread, Axi gets back to around 1.5 pips within twenty to thirty seconds. Pepperstone takes longer, usually forty to fifty seconds.
That matters if you’re trading immediately after the news. For me, I wait about a minute for things to settle before entering. By then, both brokers have normal spreads.
Rebates don’t change during news, so they don’t help much when spreads are 3+ pips. The rebate is a fixed amount per lot, not tied to spread width.
My strategy is to watch the event, avoid the first minute spike, then trade the volatility that comes after with normal spreads and normal rebates.
I’ve seen spreads blow out at both brokers during news. It’s just part of trading during those moments. Both brokers handle it reasonably, but Axi does normalize a bit faster.
The rebates don’t really help during the spike because they’re fixed. If spreads are 3.5 pips and your rebate is 0.5 pips, you’re paying 3 pips effective spread. That’s still wide.
My approach is to avoid trading the initial shock and wait for the volatility to settle into normal spreads. That way I get the volatility opportunity with reasonable spreads and rebates that actually help.
If you’re going to trade news, plan to enter after the initial spike passes, not during it.
Both brokers widen spreads during news. Axi recovers slightly faster.
Rebates are fixed so they don’t help during wide spreads much.
Axi normalizes spreads after news faster than Pepperstone.
Rebates are fixed amount don’t scale with spread width.