Why do spreads widen with some brokers during news events?

Spreads widen during major economic news or periods of sudden volatility because liquidity providers and banks become more cautious about quoting tight prices. Market depth thins out, and the risk of sharp, one‑sided moves increases, so they protect themselves by increasing the distance between bid and ask. Brokers that pass on pricing from these providers will naturally show wider spreads, and some may add an extra buffer to manage their own risk. This effect is especially visible on exotic pairs, minor crosses, or illiquid CFDs. While temporary, it can be costly for traders who enter or exit positions exactly at news time. Understanding this behavior helps you decide whether to avoid trading during key releases or to adjust your strategy and order types accordingly.