I’ve noticed my trading costs jump during major news events and I’m wondering if this is universal or specific to certain brokers. HFM seems to widen spreads noticeably during economic releases, but I can’t tell if that’s normal or if I should trade somewhere else.
I had a trade open during a Fed announcement last month and my entry spread was around 1.2 pips, but by the time the news dropped it jumped to maybe 3 or 4 pips. That’s the real cost nobody mentions when comparing brokers.
I’m trying to figure out if rebates actually help cushion this impact, or if the entire strategy of trading around news is just too expensive no matter what. Is this a broker problem or just how forex works? Have you found ways to manage these spikes using rebates or better planning, or is it just something you accept as part of active trading?
News spikes are brutal. Stop trading thirty minutes before.
Every broker widens spreads during news events.
Spread widening during news is universal across brokers. The size of the widening varies. HFM typically widens by 2 to 3 times their normal spread during major releases.
I stopped fighting this years ago. Instead of trying to trade through news, I plan around it. I close positions 15 to 20 minutes before major economic data, then reenter after volatility settles.
Rebates don’t protect you from wider spreads during news because the rebate is calculated on the actual spread that executes. If the spread widens, the rebate applies to the wider spread, which doesn’t help much.
What does help: know your broker’s news behavior. Some brokers like FP Markets maintain tighter spreads during moderate news. HFM tends to widen more but their execution is usually clean - no slippage on top of the wide spread.
If you regularly trade news events, choose a broker for clean execution during volatility, not for low spreads. A broker that slips you 1 pip costs more than one with a 3 pip wider spread.
I’ve seen the spreads jump on HFM too, and yeah it’s frustrating. But honestly, every broker does this. It’s just how the market works when volume gets crazy.
What I’ve learned is to either plan around the news or accept that the cost will be higher if I trade through it. The rebates help a bit over time, but they’re not going to offset a spike in the moment.
I usually just avoid trading during major announcements. The risk and cost aren’t worth it for me.
News volatility hits all brokers. HFM is no different from the others.
I learned the hard way that trading through news spikes is expensive everywhere. HFM included.
I used to think rebates would offset this, but they don’t really. The rebate is just a percentage back on whatever you pay. If you pay 4 pips of spread during news instead of 1.2 pips normally, the rebate on 4 pips is still a lot more costly than the rebate on 1.2.
What actually saved me money was changing when I trade. I got comfortable closing positions before major releases and reopening after the dust settles. It feels like I’m missing opportunities but the cost savings are real.
For HFM specifically, I noticed their execution stays solid during news - no weird slippage on top of the wide spreads. That matters. Some brokers slip you an extra pip or two on top of the wide spread, which is worse than just accepting a naturally wide spread.
So the strategy: pick a broker with clean execution during chaos, then avoid the chaos entirely by planning your trades around the news calendar.