How do spreads change during high-impact forex releases?
Verdict
- Spreads widen in the seconds around a high-impact release, because liquidity providers pull or reprice quotes, then usually narrow again once orders flow back; Pepperstone, our pick in Australia, passes this through transparently on its raw-spread Razor account.
- Pepperstone publishes averages, not caps: Razor EUR/USD averages 0.1 pips and Standard 1.1 pips, so expect live quotes above those figures around payrolls, CPI or an RBA decision.
- On Razor the commission stays fixed (USD 3.50 per side on MT5, USD 3.00 on cTrader for FX) while the spread moves; on Standard, the whole cost sits in the spread.
- A wider spread can trigger a stop even if the mid-price never reaches it, because sell stops are hit on the bid and buy stops on the ask.
If you have ever watched EUR/USD late at night in Sydney on a US payrolls day, you have seen the quote stretch, jump and snap back. That stretch is the spread doing its job: it is the price of immediate liquidity, and liquidity is scarce for a few seconds after a surprise. Here is what happens, what it costs at Pepperstone and how to pay less of it.
How Pepperstone prices a release
Pepperstone's Razor account quotes raw spreads that can touch 0.0 pips and adds a commission per lot; its Standard account has no commission and builds a 1-point mark-up into the spread instead. Both are variable. The figures Pepperstone publishes, 0.1 pips on Razor and 1.1 pips on Standard for EUR/USD, are averages over time, so they describe a normal day rather than the minute after a data surprise. Because Razor shows the raw market, a widening is visible before you click, which is why we prefer it for traders who are active around news.
Affiliate link — we may earn a commission at no extra cost to you.
Three phases of a scheduled release
Unscheduled shocks (a central bank comment, a geopolitical headline) follow the same pattern but without the warning of phase one.
- Before: in the final minutes, banks and market makers reduce size and step back, so the book thins and spreads drift wider than usual.
- At the print: quotes reprice almost instantly to the new information; this is when spreads are at their widest and prices can jump several levels at once.
- After: as orders return and the market agrees on a new level, spreads tighten back towards normal, often within minutes for the major pairs.
What a wider spread costs on one lot
Worked example for one standard lot of EUR/USD on a Pepperstone Razor account in USD on MT5, where each pip is worth about $10 and commission is $7 for the round trip. The spreads below are illustrative, not Pepperstone quotes; only the first row is its published average. On cTrader, take $1 off each total.
| Spread at entry | Spread cost | Commission | Total |
|---|---|---|---|
| 0.1 pips (published average) | $1 | $7 | $8 |
| 0.5 pips | $5 | $7 | $12 |
| 1.0 pip | $10 | $7 | $17 |
| 2.0 pips | $20 | $7 | $27 |
Ways to pay less of the news premium
- Wait for the spread to settle before entering; the first seconds after a print are the most expensive.
- Use limit orders for entries: they fill at your price or better, or not at all, instead of taking whatever the market offers.
- Remember the Standard account widens too: Pepperstone describes its cost as a 1-point mark-up inside the spread, so a raw-market widening passes straight through.
- Give stops room or step aside: a stop placed a few pips away can be hit on the widened bid or ask alone.
Sources
Does Pepperstone offer fixed spreads?
No. Both Razor and Standard use variable spreads, and Pepperstone publishes them as minimums and averages, not as guaranteed levels.
Which releases widen AUD pairs the most?
For AUD/USD and the crosses, RBA decisions and Australian jobs and inflation data matter most, alongside US payrolls, CPI and Federal Reserve decisions. Surprises move spreads more than numbers in line with forecasts.
Can a spread widening close my trade?
Yes. A long position's stop is triggered on the bid, so if the spread blows out the bid can touch your stop while the mid-price stays above it.
Margin FX and CFDs carry a high risk of rapid loss because of leverage, and spreads can widen sharply without notice. This page explains costs in general terms and is not investment advice.