Do Rebates Work During News Events? (Volatility Impact)
Curious if forex rebates still apply during high-impact news events? Discover how extreme market volatility affects rebate payouts, spread widening, execution, and your cashback strategy. Learn when rebates are paused, reduced, or maximized—and how to trade smart during economic announcements.
Do Rebates Work During News Events? (Volatility Impact)
Forex trading around high-impact news events is exciting but risky. Sudden price spikes, fast-moving candles, and wider spreads can either amplify your gains—or wipe you out in seconds. But what happens to forex rebates during these volatile periods? Do you still earn cashback when trading news? Let’s break it down.
💸 What Are Forex Rebates?
Forex rebates are cashback rewards traders receive for placing trades. Whether you win or lose, a percentage of your trading cost—like the spread or commission—is returned to you. The more you trade, the more rebates you earn. It’s a passive way to reduce costs and boost your bottom line.
⚡ What Happens During News Events?
Major economic news—such as Non-Farm Payroll (NFP), interest rate decisions, or inflation data—can cause:
- Spread Widening
- Slippage
- Order Rejections or Delays
- Liquidity Drain
These conditions make the market highly unpredictable and can directly affect how rebates are calculated.
🧾 Do Rebates Still Apply During News Events?
Yes, but with caveats.
Rebates typically still apply during news, but the value may vary depending on the broker and rebate provider. Here’s what can impact your cashback:
1. Increased Spreads Mean Higher Rebates (Sometimes)
If your rebate is calculated as a percentage of the spread, then higher spreads during news events can technically increase your cashback per trade. However, this comes at a cost—you’re also paying more to enter trades.
2. Commission-Based Rebates Are Usually Unaffected
For ECN accounts that charge fixed commissions, the rebate remains stable—even during news. But spreads might widen drastically, still impacting your trade outcome.
3. Some Brokers Limit Rebates During High Volatility
To protect themselves, some brokers or rebate services disable or reduce rebate eligibility during specific time windows around news announcements. These blackout periods can last from a few minutes before to a few minutes after the news release.
⏱️ Common News Blackout Periods for Rebates
Rebate restrictions may apply:
- 2–5 minutes before a high-impact event
- 2–10 minutes after the event
- During extreme volatility spikes (broker-defined)
Check your broker’s terms or rebate partner’s policy. Some platforms clearly list non-rebate periods during known economic events.
🧠 Smart News Trading with Rebates
If you still plan to trade news, here’s how to strategically manage rebates:
✅ Use ECN Accounts
Flat commission structures are more predictable. Your rebates won’t be affected by temporary spread changes.
✅ Check Broker Terms
Avoid surprises—read the fine print on rebate exclusions during volatility.
✅ Avoid Slippage Zones
While rebates may apply, poor execution during news could cost more than you’ll gain from cashback.
✅ Consider Pending Orders
Some traders set orders in advance to catch volatility. Be cautious—these are the most vulnerable to slippage and disqualified trades in some rebate programs.
💥 Can Volatility Boost Rebates?
In rare cases, high-frequency news traders maximize rebates by placing many quick trades, especially on accounts that calculate rebates per lot traded. However, this is an advanced strategy and only works if:
- You have ultra-fast execution
- Your broker allows news trading
- Rebate programs remain active during those trades
🛑 Warning: Don’t Chase Rebates Recklessly
Remember: rebates are a cost-reduction tool, not a profit strategy. Don’t take unnecessary risks or over-leverage during news just to earn cashback. Losing trades can still outweigh any rebate benefit.
🔚 Final Thoughts
Yes, rebates can work during news events, but it depends on several factors—your broker, account type, and rebate provider policies. Volatility brings both opportunity and danger. Understanding how rebates behave under these conditions helps you make smarter trading decisions.
Always trade with a solid plan, not just for profits—but to make every pip and rebate count.