Forex market experiences increased volatility during news time, which creates an opportunity to capture the move and earn/lose pips in a matter of minutes or even seconds.
Not every Forex broker if good for trading during news times with.
There are several important factors that news traders look for in Broker services:
- fast trading platform, fast feeds and chart updates
- fast order execution, minimum re-quotes
- instant guaranteed execution of pending orders
- instant guaranteed execution of stops
- reasonably low spreads
- no significant spreads widening during news spikes
- one-click-trading as an additional bonus.
There are several common problems many traders face when trading during the news with regular Brokers:
- Trading platform freezes, no new orders are taken, no orders can be closed.
- Requests for new trading orders are declined, instead traders get re-quoted multiple times.
- Existing pending orders are not filled in time, not filled at all, or filled later at very unattractive price, which results in a loss.
- Existing stops are not honored to the point of being completely ignored or filled later at much worse price, resulting in a larger than expected loss.
- The very moment before news releases there is an opportunity for a broker to manipulate prices at own discretion, for example, by creating a false spike to trigger nearby trading orders, so that when real reaction to news comes in, it'll cause the market move into the opposite direction, dragging in the losing trades, caught on the first artificial spike... Since market experiences increased volatility during news time, the price manipulation from a broker is expected to be hidden/covered by overall price volatility.
Some large Forex brokers practice sending emails to their customers before the very important news releases (for example, Non-farm Payroll Report) advising about upcoming news hours and the fact that there will be no guaranteed order execution during the news release.
But most brokers don't send such emails, therefore traders should educate themselves about specifics of News Trading in Forex, and learn as about how their broker operates during news hours.
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There are Forex brokers who say (on their websites) that traders can trade news with them. If you happen to come across such broker, please send us a link. Thank you for your help!
And now we offer you to vote on the Best News Trading Broker as well as suggest a new broker for inclusion into the Voting list.
Open voting:
ACM
6% (10 votes)
ActivTrades
1% (1 vote)
Advanced Markets
2% (4 votes)
Alpari UK
4% (7 votes)
ATC Brokers
2% (4 votes)
Broco
3% (5 votes)
CMS Forex
0% (0 votes)
Divisa Capital
1% (1 vote)
Dukascopy
16% (26 votes)
FXSolutions
8% (14 votes)
FXCM
13% (22 votes)
FXOpen
3% (5 votes)
FXPro
6% (10 votes)
Gain Capital Group (Forex.com)
3% (5 votes)
GFT
2% (4 votes)
IamFX
1% (1 vote)
IFX Markets (City Index Ltd)
1% (2 votes)
IG Markets
0% (0 votes)
Interactive Brokers
2% (4 votes)
Masterforex
2% (4 votes)
MB Trading
5% (8 votes)
NordFX
3% (5 votes)
NordMarkets
0% (0 votes)
OANDA
7% (11 votes)
PFGBEST
2% (3 votes)
Saxo Bank
4% (6 votes)
TADAWUL FX
3% (5 votes)
Total votes: 167
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If you have a minute or two... 
We'd love to hear your quick comments on
what you liked about a broker you voted for:
- was it about fast order execution?
- low spreads?
- no slippage, no requotes?
- any other features that made news trading possible?
Thank you!
BrokerGuru
March 16, 2009Advanced markets
A quote from broker's FAQ:
"Will I be able to get executed during news events such as non-farm payrolls?
As a result of Advanced Markets not taking the other side of our clients trades, there is no trading risk to Advanced Markets and therefore no reason to interfere during volatile times. Your executions will remain constant during all market conditions. The banks stream prices and depth of market that are executable and real, so there is no reason for there to be a difference in execution during these volatile times."
BrokerGuru
March 17, 2009EFX - England Foreign Exchange
News trading is allowed on Advanced (min deposit $300 000) and VIP accounts ($500 000).
BrokerGuru
March 17, 2009FastBrokersFX
Website statements:
Trading conditions:
"News trading? Yes."
FastBrokersFX scalping
Fast FX Pro - News trading - ideal.
Fast FX ECN - News trading - ideal.
BrokerGuru
March 18, 2009FXCast
Statement on the main page:
"No slippage even in news times".
BrokerGuru
March 29, 2009FXCM
" No Trading Restrictions
• Trade during breaking news "
BrokerGuru
March 29, 2009WH SelfInvest Ltd
"Our spreads are:
o Tight (EUR-USD 1 pip, GBP-USD 2 pips, ...)
o Don't vary, even when there is news"
BrokerGuru
April 3, 2009Prime4x
"Trade in the news time."
trader
April 12, 2009PronetFX have floating spreads, I found them to be narrower than most brokers that allow news trading. Fast Execution.
BrokerGuru
April 25, 2009C.I.M. Banque offers trading during breaking news.
BrokerGuru
June 21, 2009Alpari UK
Extracted from FAQ:
"I like to trade over news releases and volatile markets, is this a problem?
Not at all, our trading platform and trading desk are highly geared for active trading. Please refer to our “Terms of Business” in respect of order execution and spreads under abnormal market conditions."
trader
June 23, 2009MasterForex allows news trading.
BrokerGuru
October 14, 2009IamFX from FAQ:
"Can I Trade During Economic or Geo Political News releases?"
IamFX does allow trading during the news. However, we wish to warn clients of the dangers associated with such, namely: During major Geo Political News releases markets may become extremely volatile. Due to potential price gaps, IamFX cannot guarantee fills during news releases. Orders may be filled at the next available price and will not always be filled at the requested price or stop. News releases may also cause wider spreads than are typically seen during normal trading hours. We advise traders to use discretion when trading during the news. Please be advised that due to the volatility of price fluctuations during the news, it is possible to see a delay in execution due to the additional verification necessary for each trade."
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