What is a Requote in Forex? A Complete Guide for Costa Rica Traders (2026)

What Exactly is a Requote?

A requote is a message from your broker indicating that the price you requested is no longer available. Instead of executing your order, the broker offers a new price. This is common with brokers using 'instant execution' models. For example, if you try to buy EUR/USD at 1.1050, but the market has moved to 1.1052, the broker may ask if you want to buy at 1.1052. If you accept, the trade goes through at the new price. If you decline, the order is canceled.

How Does a Requote Work in Practice?

When you place a market order, your broker sends it to a liquidity provider. If the price changes during transmission, the provider sends back a new quote. The broker then presents this to you as a requote. For Costa Rica traders using USD-based accounts, a requote of just 1-2 pips can significantly affect small positions. For instance, a requote on a 0.10 lot trade in USD/JPY could cost or save you around $1-2 per pip.

Why Requotes Matter for Costa Rica Traders

Many Costa Rica retail traders use small account balances (often $100-$500). A requote that adds 2-3 pips to your entry could wipe out a day's profit. Additionally, Costa Rica traders often rely on local payment methods like Bank Transfer, Skrill, or USDT, which may have slower withdrawal times. If requotes cause losses, you might need to add funds quickly, which isn't always instant. Understanding requotes helps you choose the right broker and execution model for your trading style.

Costa Rica's forex market is largely unregulated, but the local financial authority (Superintendencia General de Entidades Financieras, or SUGEF) oversees financial institutions. However, most forex brokers serving Costa Rica are offshore entities. This means requotes can be more common with less reputable brokers. Costa Rica traders should prioritize brokers that offer transparent execution policies and use stable liquidity providers. When depositing via local payment methods like Bank Transfer, Skrill, or USDT, ensure the broker has a clear policy on requotes and slippage. Some brokers offer 'no requote' guarantees, which can be a major advantage for active traders. Also, consider the time zone: Costa Rica is UTC-6, so major market events often occur during local morning or afternoon hours, when volatility can spike and requotes become more frequent.

1. Check the Broker's Execution Model
   Before opening an account, verify if the broker uses instant execution (prone to requotes) or market execution (less requotes). Look for 'no requote' policies.
2. Test with a Demo Account
   Use a demo account to see how often requotes occur during your typical trading hours. Pay attention to news events that affect USD pairs.
3. Use Limit Orders Instead of Market Orders
   Limit orders specify your desired price, so you avoid requotes. This is especially useful for Costa Rica traders with small accounts.
4. Monitor Internet Stability
   A slow or unstable connection can increase requote frequency. Consider a wired connection or a local VPS to reduce latency.

Requotes vs. Slippage: Requotes give you a choice; slippage does not. Requotes are more common with instant execution brokers; slippage is more common with market execution. For Costa Rica traders, requotes can be annoying but offer control, while slippage can be costly if the market moves fast. Most experienced traders prefer market execution with no requotes, accepting occasional slippage instead. Compare both execution models on CompareBroker.io to see which suits your strategy.

When you place a market order, your broker sends it to a liquidity provider. If the price changes during transmission, the provider sends back a new quote. The broker then presents this to you as a requote. For Costa Rica traders using USD accounts, this can happen in milliseconds. For example, if you try to sell GBP/USD at 1.2500, but the market moves to 1.2503, the broker may ask if you want to sell at 1.2503. You can accept or cancel. Requotes are more common during high volatility, such as during US economic data releases or when liquidity is low (e.g., after-hours trading).

Example 1: You want to buy USD/JPY at 110.50 with $100. The broker requotes you at 110.52. If you accept, your entry is 2 pips worse. If the trade goes your way by 10 pips, you earn 8 pips instead of 10. Example 2: You try to sell EUR/USD at 1.1800 during a news event. The broker requotes you at 1.1805. You decline, and the price drops to 1.1790. You miss a 15-pip profit. For Costa Rica traders, these small differences add up, especially with frequent trading. Using limit orders can avoid these situations entirely.

The local financial authority in Costa Rica, SUGEF, regulates banks and financial entities but does not directly oversee forex brokers. Most forex brokers serving Costa Rica are regulated offshore (e.g., FCA, CySEC, or IFSC). This means requote policies are largely self-regulated. Costa Rica traders should choose brokers that voluntarily adhere to international standards, such as requiring segregated accounts and transparent execution. Always verify a broker's regulatory status on their website and check for negative reviews about requotes. A regulated broker is more likely to honor its execution policy and reduce requote frequency.

• Choose a No-Requote Broker: Some brokers explicitly advertise 'no requotes' for market orders. This can save you from unexpected price changes.
• Avoid Trading During News: High-impact news releases (like US CPI or NFP) cause rapid price movements. Trade during quieter periods to reduce requotes.
• Use a VPS: A Virtual Private Server (VPS) near your broker's server can reduce latency and requote frequency.
• Set Slippage Tolerance: Many platforms allow you to set slippage tolerance. A higher tolerance may reduce requotes but increase slippage.
• Monitor Your Internet: A stable, low-latency connection (wired is best) helps ensure your orders reach the broker quickly.

Requotes are a common but manageable aspect of forex trading. For Costa Rica traders, understanding how requotes work and how to avoid them can protect your USD profits. Start by choosing a reliable broker with a clear execution policy, test with a demo account, and use limit orders when possible. If you experience frequent requotes, consider switching to a broker with a 'no requote' guarantee. Visit CompareBroker.io to compare brokers for Costa Rica, read user reviews, and find the best fit for your trading style.