I've been observing the same thing for weeks: just before the FOMC, NFP or even Lagarde speeches, the spread of my broker (I won't say names yet)
I've been observing the same thing for weeks: just before the FOMC, NFP or even Lagarde speeches, the spread of my broker (I won't say names yet)
It's completely normal for spreads to expand at times of low liquidity, like during news. But 12 pips in EUR/USD is crazy, that's not technical justification, that's abuse. I recommend you record screen and contact support. If you don't get a reasonable explanation, run away from it. There are decent brokers that don't make those marranades.
I tell you what many do: they climb the spread, adjust the slippage and then re-quote the order. Then, when you complain, they call you "volatile market conditions." I already get two "regulated" brokers. Next time they do that to me, I shoot a video and upload it to all the networks. Enough of being the guinea pigs of these licensed mobsters.
I suspect that many do not understand that during strong news there are no stable quotes. Liquidity providers withdraw and brokers are covered. So much so well. But when you already see suspicious patterns that repeat themselves millimetrically... that is no coincidence. I am seeing spreads from 0.2 to 15 pips in a matter of milliseconds, and always in the same events. It makes you think.
Then the broker sends you emails with analysis of �how to benefit from the NFP� ... and it turns out that they themselves take you off the market with that brutal spread! It�s the height of cynicism. Either you eat the spread, or you stay out. Lose it or not, they always win. That�s how this rotten industry works if you�re not careful.
It's not just about the spread. It's that they also freeze the platform or give you requotes that seem to be taken out of a horror movie. Literal, order sent to market and runs 4 seconds later... do they really take us for idiots? This happens especially in standard accounts. In ECN accounts, the spread also goes up, but at least you have control of the slippage.
I've operated with Pepperstone for 2 years and I've never seen a spread greater than 4 pips in EUR/USD, not even in NFP. I'm saying this to make it clear that not all brokers are the same. Those who have 10+ pipe spreads are stealing in your face. Change NOW.
Spread is just the excuse to squeeze retail. You are told it was extended by "market conditions" and it turns out that the institutionals were operating quietly with normal differentials. The difference is in who your counterpart is. If your broker is market maker, you are its prey.
I have recorded several news events in real time. In all, the spread is multiplied just during the seconds of publication, but only on certain platforms. In cTrader, for example, it is barely noticed. In MT4 of certain brokers... it is a crime. It is not the market, it is the intermediary who decides how much he wants to fuck you today.
And what did they expect, to give us money during the events? These guys have set up casinos with legal facades. If they want to operate news, use real DMA brokers or better yet, avoid operating those moments. Because yes, spread is their way of charging you for playing fortune teller.
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