High impact news events—like central bank decisions, employment reports, and inflation data—can trigger rapid price movements, widened spreads, and increased volatility in the forex market. For traders, how a broker handles such moments can significantly affect trade execution, slippage, and account risk. This guide explains how to assess forex brokers’ handling of high impact news, so you can protect your trades and capital during critical market events.

Why News Handling Matters

During major news releases, brokers often face surges in trade volume, liquidity shifts, and pricing gaps. If not managed well, traders can experience:

• Severe slippage
• Widened spreads
• Delayed order execution or rejections
• Margin stop-outs without warning

A broker that handles news periods transparently and efficiently helps you navigate volatility with greater control.

1. Assess Spread Behaviour During News Events

Start by reviewing how the broker manages spread widening. Look for:

• Historical data or documentation showing average spreads before, during, and after news
• Brokers that limit spread expansion during scheduled releases
• Fixed spread accounts (if offered) for traders who prefer predictability during volatility

Excessive or unpredictable spread widening can ruin well-planned entries and exits.

2. Evaluate Slippage and Execution Quality

High impact news can cause rapid price changes. The best brokers:

• Publish slippage statistics, including frequency and average pip deviation
• Offer market execution with no requotes
• Provide execution times under 100 milliseconds, even during volatility
• Clearly state their order fill policies, especially for stop-loss and pending orders

Look for a broker that offers honest fills, not execution delays.

3. Understand the Broker’s Execution Model

Execution models affect how news volatility is handled:

• ECN and STP brokers pass trades directly to the market, which can reduce manipulation but still result in slippage
• Market makers may offer more stable spreads but risk conflict of interest or delayed execution

A broker with Direct Market Access (DMA) is often better equipped for transparent handling during volatile periods.

4. Check for Requotes and Order Rejections

During fast-moving news:

• Brokers with outdated infrastructure may freeze platforms or trigger requotes
• Requotes cause traders to accept new prices or lose the opportunity altogether
• Brokers that frequently reject orders during volatility compromise trade reliability

The best brokers either eliminate requotes altogether or disclose when and why they occur.

5. Examine Margin and Stop-Out Policies

Some brokers adjust margin requirements temporarily around news events. Review:

• Whether leverage is reduced in advance of high-impact releases
• How stop-out levels are applied during sudden market gaps
• If margin calls are triggered more aggressively around volatile sessions

Flexible, pre-announced changes are acceptable—surprise adjustments are not.

6. Look for VPS and Server Proximity Options

If you trade during news, speed matters. Top brokers offer:

• VPS hosting for reduced latency and automated order execution
• Servers co-located near liquidity providers
• Support for low-latency connections on MT5, cTrader, or proprietary platforms

These reduce lag when every second counts.

7. Use a Demo or Live Test Around Key Events

Test execution during real-time news with:

• A demo or low-capital live account
• Market orders and pending orders placed before and during announcements
• Screen recording or trade logs to measure slippage, delays, and spreads

Tracking a few major releases (like NFP or FOMC) can reveal how the broker performs under pressure.

8. Review Transparency and Communication

A good broker:

• Provides a news calendar highlighting high-impact releases
• Sends advance warnings about possible spread or margin changes
• Educates traders on risk management during volatile events
• Shares platform status updates if execution is expected to be affected

Transparent communication builds trust and helps you plan ahead.

What to Avoid

• Brokers that disable trading or block orders during news
• Widen spreads excessively without notice
• Delay executions or freeze platforms during spikes
• Offer no slippage data or trade quality reports

These signs suggest poor infrastructure or questionable execution practices.

Conclusion: Plan Ahead, Trade Prepared

Knowing how to assess forex brokers’ handling of high impact news allows you to avoid unnecessary risk and execute with precision during the market’s most volatile moments. Choose brokers that prioritise transparent execution, stable platforms, and open communication—because in news trading, control is everything.