I’ve been trying to understand how different brokers handle spreads when volatility spikes during major news releases. Everyone talks about spreads widening, but I want to know the actual numbers for FBS specifically.
I’m planning to test this myself by tracking my spreads before, during, and after major economic announcements like NFP, ECB decisions, and central bank statements. But before I do all that work, I’m curious if anyone here has already measured this on FBS.
The reason I’m asking is because I see people mention that rebates through services like GlobeGain can help offset some of the cost when spreads widen. But I’m not sure if that’s true or if it’s overstated. Like, if your spread normally averages 1.5 pips but jumps to 5 pips during NFP, does a 0.3 pip rebate really make a material difference?
Has anyone actually tracked their real spread costs on FBS during news events versus normal trading? What kind of widening are we talking about, and does it affect your overall trading profitability or is it just something you learn to live with?
I’ve been tracking this on FBS for about a year specifically because it frustrated me. During normal hours, EUR/USD hovers around 1.2-1.5 pips. NFP day? I’ve seen 4-6 pips, sometimes wider.
The interesting thing is the spread spikes in waves. There’s an initial spike when the data hits, then it settles a bit, then another spike as traders react. You also get requotes stacked on top of the wide spreads, which effectively costs you even more.
Rebates help but they don’t close the gap. A 0.3 or 0.5 pip rebate sounds nice but when you’re staring at a 5 pip spread during breaking news, it’s almost irrelevant. You just have to avoid trading during those moments or accept the extra cost.
What I’ve learned is that the best strategy is to tighten your stops before major news and either close positions or sit it out. The rebate helps with your daily costs, not with event-driven volatility.
Measure it yourself for a month. You’ll see the pattern pretty quick.
This is important data to track yourself. On FBS, during major news, spreads typically widen 2-4x. EUR/USD might go from 1.5 pips to 4-6 pips. GBP pairs are worse, often 6-10 pips.
Rebates don’t solve this problem. They offset normal trading costs, not event spikes.
The real strategy is position management around news. Close trades 30 minutes before major events or widen your stops. Some traders use news spikes as opportunities, but that requires experience and accepting the risk.
Track your cost per trade during calm hours versus news hours for a week. You’ll see the impact clearly. Then decide if you need to change your trading schedule or accept it as a cost of trading volatile pairs.
I started tracking this after losing more than expected on a couple of news trades. What I found is that FBS widens spreads pretty aggressively during big announcements.
Normal EUR/USD for me is around 1.2 pips most of the time. During FOMC or ECB, I’ve seen 3-5 pips pretty consistently. The rebate helps with regular trading but yeah, it doesn’t make much difference during those spikes.
What changed for me is I now close positions or tighten stops before major news. It’s not worth the extra cost. The rebate is useful for your everyday trading costs, not for managing volatility events.
I’d definitely track it yourself though. Different times of day and different pairs behave differently, so your experience might vary.
FBS spreads definitely widen during news. Rebates help but don’t fix the problem.
One more thing I noticed: FBS’s spread behavior is inconsistent compared to some other brokers. On some news events they widen more than competitors, on others they’re competitive. It’s not predictable, which makes it harder to plan around.
I started using two brokers specifically to have options during major news. On FBS I use limit orders or sit out. On another broker with tighter crisis execution, I’ll trade. It’s extra work but the cost savings are worth it if you trade frequently.