How do brokers deal with news trading these times??

I searched old threads here about trading news and I found brokers increase spreads and do requotes during news release. These brokers now claim fixed spreads. I also saw guys who go banned by brokers because of news trading. So if I made pips with big lots during news ,would I get banned?

Damn man , I made 30 pips for the last NZD news release in 1 minute ,but its demo of course ,that explains the fast execution. Anyone tries to open an order in the current M15 direction with tight stop?? That way u'll avoid all broker problems??

Tight stops won't work during news releases. The Broker and/or volatility will stop hunt you before you get a chance to make 1 pip profit. Most of your stop hunting happens during the 10 minutes before and after major news releases. The only way to avoid broker problems during news releases is to not trade news releases.

To be honest thats what I am considering as well. But I think since there is a very big activity during news release ,then there are lots trading news and they all make money . The one who are losing are brokers. But I still don't know how to forward test my method because it cant be done demo.

Made a sell order for Aud/Cad 30 minutes before two major CAD news. I saw Big selling on M15 charts although the trend is up. Probably the big players are making pre-orders , lets see how will this go , SL and TP are 30 pips.

Brokers with fixed spread are market makers. They are fine during non news release times, but because the real market increases spread at this time, the market maker needs to protect the dealing desk by delayed execution, requotes, or in the worst case, deletion of your news orders due to the fact that their dealing desk was not able to hedge you because of the interbank spread being rather a lot larger than the fixed spread offered by the market maker.

You could trade news with fast execution and no order deletions on an ECN broker since there is no dealing desk to get in the way, however you would have to deal with the increased spread since the interbank market increases spread at times of low liquidity. It's supply vs demand. You will find at the time of the release, liquidity dries up causing spread spikes and it only settles down as liquidity returns.

My advice is that you are better off trading based on technical analyses, and avoid "trading the news" strategies as for the most part, that means straddling the market using almost all available margin in a win or lose all gamble.

Trading the "spikes" at newstime is pretty much a thing of the past. Oh yea, sometimes you might be filled but do to slippage and increased spread the fill most likely won't be good enough to make even a few pips. There will be the very occasional time when you will get filled and a good one at that but if its with alot of market makers they'll simply delete your trade/profits.

A much better way to trade the news is to trade retracement trades. In other words wait for the reports numbers to come out, watch the spike happen, and when it retraces nicely THEN enter. Spreads will have normalized by then and slippage won't be an issue either. Usually, if the deviation is large enough from expected, the price will at least re-test the previous spike's high or low. And your entry price will most likely be better than if you had traded the spike in the first place.