Broker Reliability During High-Impact News Events
Written by SmartT Research Team – Specialists in trading automation, AI-driven risk management, and copy trading solutions.How to Protect Your Trades When Volatility Strikes
High-impact news events, such as the U.S. Non-Farm Payrolls (NFP), interest rate decisions, or inflation reports, can trigger extreme volatility in financial markets. During these moments, traders often face sudden price spikes, slippage, widened spreads, and platform freezes. For beginners, these risks can be devastating — unless they’re working with a reliable broker.
This article explains how brokers behave during major news events, why reliability matters more than ever, and how you can choose the right partner for volatile market conditions.
What Are High-Impact News Events?
In trading, high-impact news events refer to scheduled economic announcements that significantly influence market prices. Examples include:
- Non-Farm Payrolls (NFP): Released monthly in the U.S., indicating employment strength.
- Interest rate decisions: Set by central banks (e.g., the Fed or ECB).
- Inflation data (CPI/PPI): Affecting expectations for future monetary policy.
- GDP growth reports: Offering insight into economic health.
These announcements often lead to sharp price movements, especially in the forex and gold markets, creating both opportunity and danger.
How Brokers React During Major News Releases
When volatility hits, brokers respond in different ways. Some provide smooth, uninterrupted service; others may experience delays, platform crashes, or even manipulate conditions. The three main areas impacted are:
1. Order Execution Speed
Fast execution is critical. During NFP, prices can jump 50–100 pips in seconds. If your broker lags, your trade might enter too late — or not at all.
2. Slippage
Slippage is the difference between the price you expected and the price you actually get. Reliable brokers try to minimize this with superior infrastructure and liquidity.
3. Spread Widening
Many brokers widen spreads during news to manage risk. This affects your entry/exit prices and could trigger stop-loss orders unintentionally.
4. Platform Stability
Heavy traffic during news events may overload platforms. A crash at the wrong time can ruin a winning setup.
Case Study: NFP Report – May 2024
Let’s consider the NFP release on May 3, 2024, which showed a stronger-than-expected U.S. jobs number.
• EUR/USD dropped by over 80 pips within 2 minutes.
• XAU/USD (Gold) fell more than $30 instantly.
During this event:
- FBS maintained tight spreads (2.1 pips average on EUR/USD) and no platform disruption.
- AvaTrade executed orders quickly but experienced temporary spread widening.
- A few other brokers faced delays of up to 10 seconds or more — enough to miss prime entries.
This example highlights how broker infrastructure can significantly affect your trade results during news releases.
Broker Comparison Table
· FBS and AvaTrade both handled the NFP event well, making them more suitable for traders dealing with news-driven volatility.
How to Choose a Reliable Broker for News Trading
If you plan to trade during or around high-impact news releases, keep the following in mind:
• Test Execution During Volatile Hours
Use a demo or small live account to check how your broker behaves during scheduled news times. Monitor slippage and platform speed.
• Look for Regulated Brokers
Choose brokers licensed by trusted authorities like ASIC, CySEC, or FSCA. All three partners of SMARTT — FBS, AvaTrade, and Exness — meet this requirement and are publicly listed on our homepage.
• Read Reviews with Real News Performance
Check community feedback about specific broker behavior during news. Look beyond spreads — stability matters more.
• Check for News Trading Restrictions
Some brokers explicitly restrict news trading (e.g., no hedging or minimum hold times). Avoid these if your strategy depends on short-term news moves.
Pro Tips for Beginners Trading During News
Trading during news is risky, even with a top broker. Use these tips to reduce exposure:
- Lower Your Lot Size: Reduce position size during news to limit loss potential.
- Avoid Market Orders: Use pending orders with slippage protection if available.
- Don’t Overleverage: News spikes can amplify leverage-based losses dramatically.
- Avoid Trading at All (If Uncertain): Sometimes the best trade is no trade.
Conclusion: Trust Matters More Than Ever
High-impact news events create both risk and opportunity. A reliable broker ensures your trades are executed fairly, with minimal delays or disruptions. While many brokers promise "low spreads" or "fast execution," only a few — such as FBS, AvaTrade, and Exness — consistently perform during real market stress.
If you're a beginner looking to trade around events like NFP or interest rate announcements, choosing a stable, regulated broker is your first line of defense.
How SMARTT Helps in High-Volatility Markets
Even for beginners, navigating news-driven volatility becomes easier with the SMARTT trading robot. By automatically following the best-performing traders and handling execution for you, SMARTT minimizes the stress of manual decision-making during unpredictable news events. Whether you're trading forex, gold, or other assets, SMARTT can be integrated with MT5 platforms on trusted brokers like FBS or AvaTrade.
