How much do spreads widen during news events?
Verdict
- There is no fixed answer: spreads float, and no broker in our data publishes how far they widen around releases such as US payrolls or a central-bank decision. Pepperstone is our pick for news traders because its Razor commission stays the same while only the raw spread moves.
- Published averages, such as Pepperstone's 0.1 pips on EUR/USD (Razor) and 1.1 pips (Standard), describe normal conditions, not the seconds around a data release.
- The only reliable measure is your own: watch the live bid and ask on the instrument you trade, at the release time, before you put money at risk.
- Singapore residents are served by Pepperstone's Bahamas company (SCB licence SIA-F217); Pepperstone holds no MAS licence.
A spread can sit near its published average for hours and then jump in the seconds before and after a major economic release, when liquidity providers pull or reprice their quotes. How far it moves depends on the event, the instrument and the broker's liquidity, which is why honest brokers publish averages rather than promises. Here is how to size that risk in dollars and what to check at Pepperstone before you trade the news.
Why we still pick Pepperstone for trading around releases
On a Razor account, Pepperstone separates its charge into a raw spread and a fixed commission: USD 3.50 per side per standard lot on MT5 and TradingView, USD 3.00 per side on cTrader. When a release hits, the commission does not change; only the market spread does. On the Standard account the cost is built into the spread instead, as a 1-point mark-up on FX. Pepperstone also states execution 'from 50 milliseconds, with a 99.32% fill rate and no dealer intervention', based on its trades from January to March 2026. That is the broker's own claim, not our test, and it describes fills, not spreads.
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What a wider spread costs you, in dollars
On one standard lot of EUR/USD each pip is worth about $10. The first row uses Pepperstone's published Razor average; the other rows are hypothetical spreads chosen only to show how the bill grows. They are not Pepperstone quotes.
| Spread at entry | Spread cost | Commission (round turn) | Total |
|---|---|---|---|
| 0.1 pips (published average) | $1 | $7 | $8 |
| 1.0 pips (illustration) | $10 | $7 | $17 |
| 3.0 pips (illustration) | $30 | $7 | $37 |
| 5.0 pips (illustration) | $50 | $7 | $57 |
Measure it yourself before the next release
Because no figure is published, treat news-time spreads as something to observe rather than look up.
- Note the release time in Singapore time; US data often lands late in the evening or overnight.
- Open the symbol a few minutes early and record the bid-ask gap every few seconds through the release.
- Repeat over several releases; one observation tells you little.
- Compare that gap with the published average to see how much of your normal edge disappears.
- Decide on a rule, such as staying flat for a set number of minutes around tier-one data.
The risks that grow with the spread
Wider spreads are only part of the problem. Fast markets can gap past a stop: Pepperstone's published terms for its UK and German companies say a stop-loss cannot be guaranteed to fill at its level, and no guaranteed stop appears in the facts we hold for any Pepperstone entity. Leverage magnifies all of this. Retail leverage at the Bahamas entity reaches 1:200 on FX, so a small adverse move plus a wide spread can trigger margin calls quickly. One protection does apply: under clauses 6.2 and 6.3 of that entity's terms, retail clients are not liable for a negative balance.
Sources
Figures as published by Pepperstone.
Does Pepperstone's commission rise during news?
No. Razor commission is a published fixed amount per lot (USD 3.50 per side on MT5, USD 3.00 on cTrader). Only the market spread moves.
Is the average spread what I will pay at a release?
Not necessarily. An average blends quiet and busy periods. At a major release you may pay well above it, so check the live quote.
Is Pepperstone licensed by MAS?
No. Singapore residents deal with Pepperstone Markets Limited in the Bahamas, under SCB licence SIA-F217. A search of the MAS Financial Institutions Directory finds no Pepperstone entry.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Pepperstone's international site states that 80% of retail investor accounts lose money when trading CFDs with this provider. This page is not investment advice; broker terms change, so confirm them on the broker's own site before opening an account.