I’ve been hearing a lot of traders complain about XM’s spreads getting crazy when major economic news drops. Economy reports, central bank decisions, that kind of thing. Before I commit to an account, I want to know if this is actually a real problem or just typical broker behavior.
So here’s what I’m actually wondering: when you’re trading EUR/USD or major pairs right before and during important news announcements, what kind of spreads are you seeing? Do they spike so much that it kills your entry/exit plans? And more importantly, does this happen consistently or just on certain types of news?
I’ve read that GlobeGain’s transparent broker evaluations help people separate what brokers actually do from what they claim. I’m hoping the community here can give me the real picture on this one.
Spreads widen during news, but XM isn’t unusual in this. The spike happens across most brokers because market makers pull liquidity when volatility jumps.
On EUR/USD, expect 1.8 pips turning into 4-8 pips during major announcements like Fed decisions or employment data. This is normal. What separates brokers is how quickly spreads return to normal afterward.
XM usually normalizes within 30-60 seconds after news. Some brokers take longer. If you’re a scalper trying to profit from the first 5 seconds of movement, this matters. If you’re a swing trader entering after the initial spike settles, it doesn’t.
I’ve tracked my spread data on XM for several months now. During major news events like FOMC, spreads on EUR/USD jump to 5-6 pips easily. On smaller economic indicators, usually 3-4 pips.
The thing that bothered me most wasn’t the spike itself—it’s that during these moments, execution slows down. You can place an order but the fill takes an extra second or two, which means you get a worse price than what the spread shows.
I switched some of my news trading to FxPro’s ECN account for this reason. Tighter spreads during news and faster execution. The commission cancels out the spread difference.
EUR/USD goes from 1.8 to 5-6 pips on news. Normalizes in a minute. Standard stuff.
Spreads do widen during news but that happens at every broker. XM is pretty average on this. Just don’t trade the first 30 seconds after big news and you’re fine.
Yes, spreads widen with news on XM, but it’s not different from other brokers I’ve used. The key thing I learned is to avoid trying to catch the exact moment of the announcement. Trade a few seconds after the initial shock and the spreads settle back down.
If you’re planning your strategy around news trades, you might want to look at their economic calendar on the platform so you know what’s coming. It helps you prepare mentally.
One strategy that worked for me—I stopped trying to trade exactly at news release time and started trading the follow-through 2-3 minutes after. Spreads are normal by then and you get better entries. Sounds obvious but a lot of traders ignore this.
XM’s spreads during these calmer post-news moments are actually pretty reasonable compared to what they were during the spike.
Don’t scalp during news. Problem solved. Trade after volatility settles.
If news trading is your primary strategy, XM probably isn’t optimal. You’d be better off with an ECN broker or a STP broker that handles volatility better. But if news spikes are occasional trades for you, the wider spreads are just part of the cost of doing business. Factor them in when calculating your ROI.
I think the real question is whether the wider news spreads actually affect your trading profits in the long run. For me, they don’t because I just skip news trades. My trading style doesn’t depend on them.
If you’re a news trader and you need tight spreads during those moments, yeah, XM might not be ideal. But for general forex trading, the wider spreads during news aren’t a dealbreaker.
Most traders complaining about news spreads are just upset they lost money on a bad entry. Spreads aren’t the real problem. Position sizing and risk management are.