What is a Requote in Forex? A Complete Guide for Denmark Traders

What Exactly is a Requote?

A requote is a message from your broker indicating that the price you requested is no longer available. Instead, the broker offers a new price (bid or ask) that you must accept or reject. This happens because forex prices move in milliseconds, and your broker's liquidity provider may have moved the price before your order could be filled. For Denmark traders, this is common when trading during news events (like US interest rate decisions) or during low liquidity periods (e.g., late European evening).

How Requotes Affect Your Trading in Denmark

When trading USD pairs, a requote can cost you pips. For example, if you try to buy USD/DKK at 6.8500 but the broker requotes at 6.8505, you pay 5 pips more. Over many trades, this adds up. Denmark retail traders funding accounts via Skrill or USDT may also face delays in execution, which increases requote risk. The Danish Financial Supervisory Authority (Finanstilsynet) requires brokers to disclose their execution policy, but requotes are still a reality in fast markets.

Requotes vs. Slippage: What's the Difference?

Requotes are different from slippage. Slippage happens automatically when your order is filled at the next available price without asking you. Requotes ask for your permission first. For Denmark traders, requotes are more common with market maker brokers, while slippage is typical with ECN/STP brokers. If you prefer no requotes, choose an STP broker regulated by Finanstilsynet.

For Denmark retail forex traders, requotes are particularly relevant when using local payment methods like Bank Transfer, Skrill, or USDT. Bank Transfer deposits can take 1-3 business days, meaning your account balance may not update instantly, leading to requotes if you try to trade with pending funds. Skrill and USDT deposits are faster (usually instant), but the broker's execution speed still matters. The Danish Financial Supervisory Authority (Finanstilsynet) oversees forex brokers operating in Denmark, ensuring they follow fair execution practices. However, requotes are not illegal—they are part of the market. To minimise requotes, Denmark traders should choose brokers with high liquidity, such as those offering direct market access (DMA) to USD pairs like EUR/USD or USD/JPY. Compare brokers on CompareBroker.io to find those with transparent requote policies.

1. Step 1: Understand Your Broker's Model
   Check if your broker is a market maker (more requotes) or STP/ECN (fewer requotes). For Denmark traders, STP brokers are often better for USD trading.
2. Step 2: Check Liquidity Hours
   Avoid trading during low liquidity times (e.g., 12 AM to 3 AM CET) when USD pairs like USD/DKK see wider spreads and more requotes.
3. Step 3: Use Limit Orders
   Instead of market orders, use limit orders to specify your desired price. This reduces requote risk because you wait for the price to come to you.
4. Step 4: Monitor News Events
   Avoid trading during major US news (like Non-Farm Payrolls) if you dislike requotes. Use an economic calendar to plan your trades.

Requotes vs. Instant Execution: Some brokers offer 'instant execution' which may still involve requotes. True instant execution means your order is filled at the requested price or rejected—no requote. For Denmark traders, instant execution is rare with market makers. ECN brokers offer 'market execution' where orders are filled at the best available price without requotes, but slippage may occur. Compare both models on CompareBroker.io to see which one aligns with your risk tolerance.

When you place a market order to buy or sell a currency pair (e.g., USD/DKK), your broker sends the order to a liquidity provider. If the price has moved, the provider returns a new price—this is the requote. For Denmark traders, this process is influenced by the broker's technology and liquidity. Brokers using a 'dealing desk' may requote more often because they act as the counterparty to your trade. In contrast, STP brokers pass your order directly to the market, reducing requotes. The Danish Financial Supervisory Authority requires brokers to disclose whether they use a dealing desk or STP model, so always check this before funding your account with Skrill or Bank Transfer.

Example 1: Lars, a Denmark trader, wants to buy EUR/USD at 1.1000. He places a market order. The broker requotes at 1.1002 because the price moved. Lars accepts, paying 2 pips extra. Over 100 trades, this costs him 200 pips—equivalent to 200 USD on a standard lot.
Example 2: Mette, another Denmark trader, uses a limit order to buy USD/DKK at 6.8500. The order is filled exactly at that price because she waited. No requote occurred. This shows how limit orders help avoid requotes.
Example 3: During the US Non-Farm Payrolls release, a Denmark trader tries to sell GBP/USD. The broker requotes multiple times, causing delays. The trader loses 50 pips due to missed entry. This highlights why avoiding news events is important.

The Danish Financial Supervisory Authority (Finanstilsynet) regulates forex brokers operating in Denmark. Under ESMA rules, brokers must provide transparent execution policies, including how requotes are handled. Denmark traders are protected by negative balance protection and leverage limits (max 30:1 for retail clients). Always verify a broker's license on Finanstilsynet's official website. If a broker is not regulated by Finanstilsynet, they may not follow Danish consumer protection laws, increasing your risk of requote abuse.

• Tip 1: Use a VPS for Automated Trading: Denmark traders using Expert Advisors (EAs) should use a Virtual Private Server (VPS) near London servers to reduce requotes due to latency.
• Tip 2: Avoid Trading During Low Liquidity: The best time for USD trading is during the London-New York overlap (1 PM to 5 PM CET). Avoid trading between midnight and 3 AM CET.
• Tip 3: Choose Fixed Spread Brokers: Fixed spread brokers often have fewer requotes because they guarantee a spread, but check if they are regulated by Finanstilsynet.
• Tip 4: Test with a Demo Account: Before depositing real money via Skrill or Bank Transfer, test the broker's execution on a demo account to see how often requotes occur.
• Tip 5: Use CompareBroker.io: Visit CompareBroker.io to compare brokers based on requote frequency, regulation, and payment methods accepted in Denmark.

Requotes are a natural part of forex trading, but they can cost you money if not managed properly. For Denmark traders, the key is to choose a broker with transparent execution, trade during liquid hours, and use limit orders. Always check if your broker is regulated by Finanstilsynet. To find the best broker for your needs, visit CompareBroker.io and compare brokers based on requote frequency, regulation, and payment methods like Skrill, USDT, and Bank Transfer. Start your comparison today to trade smarter in Denmark.