Does JustMarkets Allow News Trading? A Deep Dive for Traders

If you’re wondering, “Does JustMarkets allow news trading?” the answer is yes, JustMarkets permits news trading as part of its flexible trading policies. This Seychelles-based broker, known for its low spreads and high leverage, supports a variety of trading strategies, including news trading, scalping, hedging, and more. However, there are nuances and risks you need to understand before diving into news trading with JustMarkets. In this article, I’ll break it all down in a covering what news trading is, how JustMarkets handles it, the potential pitfalls, and tips to make the most of it. Let’s get started!

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What Is News Trading, and Why Does It Matter?

News trading involves capitalizing on market volatility triggered by major economic events, like central bank interest rate decisions, non-farm payroll (NFP) reports, or company earnings releases. These events often cause sharp price movements, creating opportunities for traders to profit. But here’s the catch: news trading is high-risk because markets can be unpredictable, and liquidity can dry up during these periods.

For forex and CFD traders, news trading is especially appealing because currency pairs and other assets can experience dramatic swings based on macroeconomic data. If you’re using a broker like JustMarkets, you want to know if their platform supports this strategy and whether there are any restrictions or risks to watch out for.

JustMarkets’ Stance on News Trading

JustMarkets explicitly allows news trading, along with other strategies like scalping, hedging, and Expert Advisor (EA) trading. According to their official resources, they don’t impose strict bans on trading during high-impact news events, which is a big plus for traders who thrive on volatility. This flexibility makes JustMarkets a popular choice for traders in regions like Southeast Asia and Africa, where the broker has a strong presence.

That said, there are some important details to keep in mind:

1.     High Leverage and Volatility: JustMarkets offers leverage up to 1:3000 for certain instruments, which can amplify both profits and losses during news events. For example, trading gold (XAUUSD) or major forex pairs like EUR/USD during an NFP release can be lucrative but also risky if you overleverage.

2.     Liquidity and Execution: JustMarkets partners with seven liquidity providers, ensuring deep liquidity and fast execution speeds (averaging 52 milliseconds, faster than the industry standard). This is crucial for news trading, where split-second execution can make or break a trade. However, they note that spreads may widen during low-liquidity periods, such as major news releases, which could affect your trade outcomes.

3.     Margin Requirements: During high-volatility periods like news events, JustMarkets may apply increased margin requirements for certain instruments, especially during rollovers, weekends, or holidays. This means you might need more capital to maintain open positions, so plan accordingly.

4.     Slippage Protection: JustMarkets offers slippage protection to ensure trades are executed at the expected price, which is a lifesaver during volatile news events when prices can move rapidly. They also provide negative balance protection, resetting your account to zero if a sharp market move wipes out your balance.

The Risks of News Trading with JustMarkets

While JustMarkets allows news trading, it’s not all smooth sailing. Here are some risks to watch out for:

·         Spread Widening: During major news events, spreads can widen significantly due to reduced liquidity. For example, the average spread for EUR/USD might jump from 0.1 pips to much higher, increasing your trading costs. Always check current spreads on the JustMarkets platform before placing trades during news releases.

·         Potential Restrictions on High-Frequency Strategies: While news trading itself is allowed, JustMarkets’ Client Agreement notes that certain high-frequency strategies or Expert Advisors generating excessive server load may be restricted. If your news trading strategy relies on rapid, automated trades, double-check with their support team to ensure compliance.

·         Execution Risks: Even with fast execution, news events can lead to slippage or requotes if market conditions are chaotic. JustMarkets’ combination of STP and market maker processing generally ensures quick order fills, but no broker is immune to market disruptions during major news.

·         Past Complaints: There’s a notable case from 2023 where a trader claimed JustMarkets canceled their profits from trades placed during a company earnings release, labeling it “fraudulent trading.” The trader argued that news-based speculation shouldn’t be penalized, but JustMarkets’ response suggested a violation of their Client Agreement. While this is a single incident, it highlights the importance of understanding their terms to avoid disputes. Always review the Client Agreement and contact support for clarity on what’s allowed.

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How to News Trade Effectively with JustMarkets

Ready to try news trading with JustMarkets? Here are some practical tips to maximize your success and minimize risks:

1.     Use the Economic Calendar: JustMarkets provides an economic calendar on their website, highlighting key events like interest rate decisions and employment data. Use it to plan your trades and avoid being caught off guard by unexpected volatility.

2.     Choose the Right Account Type: JustMarkets offers several account types, like Standard, Pro, and Raw Spread, each with different spreads and commission structures. For news trading, the Raw Spread account (with spreads from 0 pips and a $3 commission per lot) is ideal for day traders and scalpers due to its low costs during volatile periods.

3.     Leverage Wisely: With leverage up to 1:3000, it’s tempting to go big during news events, but this can backfire. Start with lower leverage to manage risk, especially for volatile instruments like gold or oil.

4.     Practice on a Demo Account: JustMarkets offers a demo account with virtual funds, perfect for testing your news trading strategy without risking real money. Use it to get familiar with their MT4 or MT5 platforms and how they handle news-driven volatility.

5.     Monitor Liquidity and Spreads: Before entering a trade during a news event, check the platform for real-time spread data. If spreads are too wide, consider waiting for the market to stabilize.

6.     Contact Support for Clarity: JustMarkets offers 24/7 multilingual support via live chat, email, and phone. If you’re unsure about their news trading policies or restrictions, reach out to their team. They’re known for quick, knowledgeable responses, though navigating their chatbot can be a minor hassle.

Why Choose JustMarkets for News Trading?

JustMarkets stands out for news traders due to its:

·         Flexible Trading Policies: Unlike some brokers that restrict trading during news events, JustMarkets allows it, giving you more freedom to execute your strategy.

·         Competitive Conditions: With tight spreads (from 0 pips on Raw Spread accounts), fast execution, and high leverage, JustMarkets creates a solid environment for news trading.

·         Robust Platforms: Their MT4 and MT5 platforms are reliable for technical analysis and one-click trading, crucial for reacting quickly to news-driven price moves.

·         Regulation and Safety: Regulated by CySEC, FSCA, FSA, and FSC, JustMarkets ensures client funds are held in segregated accounts, adding a layer of trust. They also use advanced encryption for secure transactions.

However, JustMarkets isn’t perfect. They don’t offer free VPS hosting, which could enhance low-latency trading during news events, and their research tools are somewhat limited for advanced traders. If you rely heavily on market news or proprietary analysis, you might need to supplement with external resources.

Final Thoughts: Is JustMarkets Right for Your News Trading?

JustMarkets is a solid choice for news trading, thanks to its permissive policies, fast execution, and competitive trading conditions. Whether you’re trading forex, commodities, or CFDs, their platform supports the flexibility you need to capitalize on news-driven volatility. However, you must be mindful of widened spreads, potential margin increases, and the rare but possible risk of disputes over profits, as seen in past complaints.

To succeed, plan your trades around their economic calendar, use the right account type, and practice risk management to navigate the wild swings of news events. If you’re new to news trading or JustMarkets, start with their demo account to test the waters.

 ✅ Trade with JustMarkets now: Open An Account or Visit Brokers 👈

Read more:

• Is JustMarkets a Market Maker?

• Is JustMarkets A Book Broker?