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

What Exactly is a Requote?

A requote happens when you place a market or pending order, but the price has moved before your broker can execute it. Instead of filling your order, the broker sends a message asking if you want to accept the new price. For example, you try to buy USD/EGP at 30.50, but the broker says the new price is 30.55. You must accept or reject. This is different from slippage, where the order is filled at the next available price without asking.

Why Requotes Matter for Egypt Traders

Egypt traders are often USD exposure seekers due to EGP depreciation. When the Central Bank of Egypt (CBE) makes unexpected policy changes, or when global dollar strength rises, USD/EGP volatility spikes. During these moments, requotes are common. If you are trading with a broker that uses instant execution (common among smaller local brokers), you may face frequent requotes. ECN brokers with market execution typically avoid requotes but may have variable spreads.

How Requotes Impact Your Trading Costs

Every requote can cost you pips. Suppose you want to buy 1 lot of EUR/USD at 1.1000, but a requote gives you 1.1005. That 5-pip difference means you pay EGP 50-100 more in costs (depending on lot size and EGP exchange rate). Over many trades, requotes eat into your profits. For Egypt traders using bank transfers or Vodafone Cash to fund accounts, every pip counts because local transaction fees already reduce your capital.

For Egypt traders, requotes are especially relevant due to the unique local trading environment. The EGP has depreciated significantly against the USD, pushing many Egyptians to seek forex as a hedge. This demand concentration on USD pairs (USD/EGP, EUR/USD, GBP/USD) creates liquidity gaps during Cairo trading hours (9 AM to 3 PM EET). Local brokers often route orders through limited liquidity providers, increasing requote frequency. Payment methods like Bank Transfer, USDT, and Vodafone Cash are popular, but they don't affect requotes directly. However, USDT deposits allow faster fund availability, which can help you act quickly on price movements. EFSA (Egyptian Financial Supervisory Authority) regulates forex brokers in Egypt, requiring them to disclose execution policies. Always check if your broker is EFSA-licensed and whether they offer market execution to minimize requotes.

1. Check Your Broker's Execution Model
   Before opening an account, ask if the broker uses instant execution (requotes possible) or market execution (no requotes). EFSA-regulated brokers must provide this information in their terms. Choose market execution for faster fills.
2. Use Limit Orders Instead of Market Orders
   Limit orders specify the exact price you want. They eliminate requotes because the order only executes at your price or better. This is useful for Egypt traders buying USD/EGP during dips.
3. Avoid Trading During High-Impact News
   Major economic releases like CBE interest rate decisions or US Non-Farm Payrolls cause extreme volatility. During these times, requotes spike. If you must trade, use pending orders with slippage protection.
4. Choose an ECN Broker Accepting Local Payments
   ECN brokers match orders directly with liquidity providers, reducing requotes. Many ECN brokers accept USDT and bank transfers from Egypt. Verify their EFSA status before depositing.

Requote vs. Instant Execution vs. Market Execution
Instant execution brokers (common among smaller Egyptian brokers) allow requotes. Market execution brokers (ECN/STP) fill at the next available price without asking. For Egypt traders, market execution is usually better because it removes requote delays. However, market execution can lead to negative slippage during fast markets. Compare the two: instant execution gives you control to accept or reject, but costs time; market execution fills instantly but may have slippage. Most professional Egypt traders prefer market execution for scalping and day trading, while beginners may find instant execution less intimidating. Use comparebroker.io to filter brokers by execution type.

A requote occurs when your broker's price feed updates before your order is processed. For example, you see USD/EGP at 30.45 and click 'Buy'. Your broker checks the liquidity provider's price, but by the time the request reaches them, the price has moved to 30.48. Instead of filling at 30.48 (slippage), the broker sends a requote asking if you accept 30.48. You must manually confirm, which delays your trade further. For Egypt traders, this is common during early morning London session overlap with Cairo hours, when liquidity is thinner. Brokers with multiple liquidity providers reduce requote frequency. Using USDT deposits can speed up your account funding, but execution speed depends on your broker's infrastructure.

Example 1: Ahmed in Cairo wants to buy 0.1 lots of USD/EGP at 30.50. He uses a broker with instant execution. The broker's system shows 30.50, but when Ahmed clicks buy, the price moves to 30.52. He receives a requote: 'Price changed to 30.52. Accept?' Ahmed accepts, paying EGP 2 more per unit. Over 10,000 units, that's EGP 200 extra cost.

Example 2: Layla trades EUR/USD during CBE rate decision. She places a market order to sell at 1.1050. Volatility spikes, and the broker requotes at 1.1045. Layla rejects and misses the trade. The price drops to 1.1020 within seconds. If she had used a limit order, she could have captured the move without requotes.

EFSA and Requotes
The Egyptian Financial Supervisory Authority (EFSA) oversees forex brokers operating in Egypt. While EFSA does not ban requotes outright, it requires brokers to disclose their execution policies clearly. If a broker uses instant execution, they must inform you that requotes may occur. EFSA also mandates that brokers treat clients fairly and handle disputes through its complaint mechanism. For Egypt traders, choosing an EFSA-regulated broker provides some protection against abusive requote practices. However, EFSA's regulations are less strict than those in the EU or UK, so always read the fine print. If you face excessive requotes, file a complaint with EFSA. To avoid requotes altogether, consider brokers regulated by top-tier authorities (FCA, CySEC) that also accept Egyptian clients.

• Use a demo account first: Test your broker's execution speed and requote frequency with a demo account funded with virtual EGP. This helps you understand their real performance before risking real money.
• Monitor EGP news: Follow CBE announcements and USD/EGP exchange rate movements. Volatility spikes during these events increase requote likelihood. Use an economic calendar set to Cairo time.
• Set slippage tolerance: Some platforms allow you to set maximum slippage. Use this to avoid requotes by accepting small price deviations. For example, set 3-pip slippage tolerance on EUR/USD.
• Compare brokers: Use comparebroker.io to check requote history and execution speed ratings for brokers serving Egypt. Look for those with low requote complaints.
• Avoid scalping with instant execution: Scalping strategies require fast fills. If your broker uses instant execution, requotes can ruin your strategy. Switch to an ECN broker for scalping.

Requotes are a reality for many Egypt traders, especially those using instant execution brokers during volatile EGP conditions. By understanding what causes requotes and how to avoid them, you can protect your trading capital and improve execution quality. Start by checking your broker's execution model, using limit orders, and choosing EFSA-regulated or top-tier brokers. Use comparebroker.io to find brokers with low requote rates that accept Bank Transfer, USDT, or Vodafone Cash. Remember, every pip saved from avoiding requotes is a pip added to your profits. Take control of your forex trading today by prioritizing execution quality over flashy bonuses.