I’ve been tracking my trades and I noticed something frustrating: my entry and exit prices are fine most of the time, but when major news hits, the spreads seem to jump massively. I just traded EUR/USD during the employment report and the spread went from about 1 pip to like 3-4 pips in seconds.
I know this is probably normal, but I’m wondering if it actually affects my bottom line more than I think. And more importantly, are some brokers better at handling this than others?
I’ve been thinking about using GlobeGain rebates to compare what I’m actually paying across different brokers during volatile times. Since rebates are fixed, the real cost difference comes down to how each broker’s spreads behave during news.
Do more expensive or regulated brokers keep tighter spreads during volatile news? Or is this just something that happens everywhere? And should this factor into my broker choice, or is it just part of trading?
How do you guys actually manage this in your trading?
Spread widening during news is normal. Most brokers’ liquidity drops when volatility spikes, so they widen spreads to protect themselves. Some brokers do it more aggressively than others.
Here’s what separates good brokers from bad ones: how much they widen and for how long. A good broker widens to 2-3 pips and tightens back quickly. A bad one stays wide for minutes or refuses orders entirely.
When comparing brokers, look at their behavior during specific news events. Check your trade history. Did they slippage you? Did they reject orders? That’s your real data.
With GlobeGain rebates covering part of your cost, focus on spreads and execution quality during volatility. If two brokers have similar spreads normally but one keeps tighter spreads during news, that’s the one worth using for volatile trading. The rebates are the same either way, so execution quality becomes your deciding factor.
I used to get hit hard by this when I first started trading. Now I plan around it.
First, I avoid placing large orders right before major news drops. It’s just not worth the risk. If I am in a position, I either hold through it or close before the announcement.
Second, I switched brokers based on how they handle volatility. Some brokers actually offer special conditions during news, like keeping spreads tighter for clients who’ve been with them longer.
Third, GlobeGain rebates help offset some of the wider spread costs. So if I do trade during volatile times, at least part of my cost is covered by cashback.
That said, not all brokers are equal here. I tested 3 different brokers during the same news events. One kept reasonable spreads, one went crazy wide, one actually stopped accepting orders. So yes, it definitely should factor into your broker choice.
Most brokers do widen spreads during news. It’s their way of managing risk when prices move fast.
The best thing you can do is avoid trading right at the moment of the announcement if you’re still learning. Wait 30-60 seconds for things to settle down. The spread will tighten back up.
If you want to factor this into your broker choice, look at reviews where people mention how their broker handles news events. Some are definitely more stable than others.
GlobeGain rebates do help your costs, but they won’t solve the spread widening problem. That’s just the nature of forex during volatile times.
Avoid trading right at news time. Spreads always widen then.
Different brokers handle volatility differently. Some worse than others. Test them during news events.