I’ve noticed that HFM’s spreads can widen significantly during major economic announcements and data releases. That’s normal with any broker, but it happens enough that it’s eating into my profitability on those days.
I started wondering: how much of that spread widening cost is actually being covered by the rebates I’m getting from GlobeGain? Like, if the spread jumps from 1.2 pips to 3 pips during a news event, and I get 0.5 pip rebate, I’m still paying 2.5 pips net. That’s rough.
But I’m curious whether rebates scale or adjust on high-spread trades, or if they’re just a flat rate regardless of market conditions. I want to understand if rebates are actually helping me stay profitable during volatile times or if they’re basically irrelevant when spreads widen.
Does anyone have real experience with how much rebates actually help when spreads spike?
Rebates are flat rate regardless of spread size. If your rebate tier pays 0.5 pips per lot, you get 0.5 pips whether spreads are 1.2 or 5 pips. That’s important context.
When HFM widens to 3 pips during news, your rebate still covers the same 0.5 pips. Your net cost jumps from 0.7 pips to 2.5 pips. Rebates help but don’t scale with volatility.
This is why many experienced traders avoid trading during major news. The entry and exit slippage often exceeds any rebate benefit. You’d make more profit trading quieter times at tighter spreads.
If you must trade news: use limit orders and accept wider fills instead of market orders. You’ll avoid the worst spreads. Otherwise, sit out the announcement and trade 15 minutes after volatility settles. Rebates work better when spreads are reasonable.
I tested this specifically during FOMC announcements last year. HFM’s spreads would jump to 2.5 to 4 pips on major pairs during releases. My rebate was around 0.5 pips at that time.
The math is simple: rebate doesn’t cover most of the extra cost. I was losing more during news trades than I made on quiet days combined.
So I stopped trading during major announcements. Sounds obvious now, but I was convinced I could be profitable if I timed it right. Reality check: I couldn’t.
Rebates help with your baseline trading costs on normal market conditions. They don’t protect you during volatility spikes. That’s a different problem that requires different strategy—waiting for calmer conditions or using different order types.
Rebates are helpful for normal trading but don’t really scale when spreads get crazy during news. So the rebate you get stays the same, but your total cost goes way up.
I’ve learned to just avoid trading during major announcements. It’s simpler and more profitable than trying to squeeze trades during chaotic times.
Rebates work best when market conditions are calm and spreads are normal.
Rebates don’t scale with spread widening. Avoid news spikes.
Rebate stays the same even when spreads jump. So if rebate is 0.5 pips and spread widens to 3, you still only get 0.5 back. Doesn’t help much.