Spreads widening before news release

I have been testing a system on demo and been averaging 3% return per month, so nothing spectacular. Maximum drawdown has been 14% but is usually around the 4% mark.

A few days ago I had a buy order set on AUD/USD and it opened 1 second before the AUD news release.

Price was 1.2 pips from hitting the buy order price so I assume the spread was widened before the news release which triggered my trade.

Do all Brokers widen spreads before news releases?

yes

yes they do they do warn you however always go with fixed spreads a little more expensive but saves you more in the long term imo.

Pipanator, who warned you to go with fixed spreads?

I have had a reply from the Broker "Just before the release spreads will most likely increase as banks reduce their risk of being caught on the wrong side of the movement."

This will be a problem for me as I like to set pending orders with this system.

I do not think this Broker offers fixed spreads, there is an option for no commission and higher spreads but they are variable too I think. I will ask.

Spreads widening before news: pretty much a normal occurrence in trading. Perhaps you should learn to avoid trading before such releases/

Try InsteForex.
Majoy symbol's spread is a little wide,3pips but it never widens whatever happens.