What Is a Requote in Forex? A Complete Guide for Luxembourg Traders

What Exactly Is a Requote in Forex?

A requote happens when you place a market order at a specific price, but the broker cannot fill it at that price due to rapid market movements or low liquidity. Instead of executing your order, the broker sends you a new quote — a 'requote' — at a different price. You then have the choice to accept or reject this new price. This is different from slippage, where the order is executed automatically at the next available price without your consent.

Why Do Requotes Happen?

Requotes are common during high volatility events like economic news releases (e.g., US Non-Farm Payrolls) or when liquidity is low, such as during market close. For Luxembourg traders trading USD pairs, requotes often occur when the market moves quickly and the broker's price feed cannot keep up. Brokers with a 'dealing desk' model are more likely to requote because they manually process orders, while ECN/STP brokers typically avoid requotes.

Example of a Requote for a Luxembourg Trader

Imagine you are a retail forex trader in Luxembourg and you want to buy 1 standard lot (100,000 USD) of EUR/USD at 1.1050. You click 'buy,' but the market moves to 1.1052 within a second. Your broker sends a requote: 'New price: 1.1052. Accept or reject?' If you accept, you pay 2 pips more, which costs approximately 20 USD (since 1 pip on a standard lot is about 10 USD). Over 100 trades, that adds up to 2,000 USD in extra costs.

How Requotes Affect Your Trading Costs

For Luxembourg traders, requotes effectively increase your trading costs. If you trade frequently, even small requotes can eat into your profits. To minimize requotes, choose a broker that offers 'no requote' execution, use limit orders instead of market orders, and trade during high-liquidity sessions like the London-New York overlap. Also, avoid trading during major news releases unless you use a broker with a reliable ECN model.

For Luxembourg traders, requotes are particularly relevant because of the country's active retail forex community and the local financial authority's strict regulations. The regulator requires brokers to disclose their order execution policies, including whether they use a 'dealing desk' model that can cause requotes. When funding your account, you have several options: Bank Transfer is secure but slow, Skrill offers faster deposits but may have fees, and USDT provides near-instant funding with low costs. Using USDT can help you act quickly on trades, reducing the chance of requotes due to delays. Many Luxembourg traders prefer ECN/STP brokers that offer direct market access, which minimizes requotes. Always verify that your broker is regulated by the local financial authority and read their execution policy carefully. This ensures you understand when requotes might occur and how to avoid them.

1. Choose a No-Requote Broker
   Select a broker regulated by the local financial authority in Luxembourg that offers ECN or STP accounts. These brokers typically do not requote because they match orders directly with liquidity providers. Check the broker's website for 'no requote' guarantees.
2. Use Limit Orders Instead of Market Orders
   When you place a limit order, you specify the exact price you want. If the market reaches that price, your order is executed without requotes. This is especially useful for Luxembourg traders trading USD pairs during volatile sessions.
3. Fund Your Account with Instant Payment Methods
   Use USDT or Skrill to fund your account instantly. Delays in funding via Bank Transfer can cause you to miss a trade, increasing the chance of requotes when you finally place an order. Instant funding helps you enter the market at your desired price.
4. Trade During High-Liquidity Hours
   The best time to trade for Luxembourg traders is during the London-New York overlap (14:00-17:00 CET). During these hours, liquidity is highest, reducing the chance of requotes. Avoid trading during major news events unless you have a robust strategy.

Requote vs. Instant Execution
Some brokers offer 'instant execution' which means your order is either filled at the requested price or a requote is sent. Other brokers offer 'market execution' where your order is filled at the next best available price without requote. For Luxembourg traders, market execution is generally faster and avoids requotes, but can result in slippage. Instant execution gives you more control but can cause delays. Choose based on your trading style: if you prefer certainty, use instant execution with limit orders; if you prefer speed, use market execution.

How Requotes Work in Practice
When you place a market order, your broker sends your request to their liquidity provider or internal dealing desk. If the price you requested is no longer available due to market movement, the broker sends a requote with a new price. For example, if you want to sell USD/CHF at 0.9000, but the market drops to 0.8998, the broker may requote you at 0.8998. You then decide to accept or reject. In Luxembourg, this process can take a few milliseconds to seconds, depending on your broker's technology. Using a fast internet connection and a reliable trading platform can reduce the time it takes to receive and respond to a requote. Some brokers offer 'one-click trading' that automatically accepts requotes within a predefined range, speeding up execution.

Real-Life Example for Luxembourg Traders
Let's say you are a retail forex trader in Luxembourg with a USD-denominated account. You decide to buy 0.5 lots (50,000 USD) of GBP/USD at 1.2500. The market is volatile due to a UK inflation report. You click 'buy,' but the broker sends a requote: 'New price: 1.2503. Accept or reject?' If you accept, you pay 3 pips more, costing approximately 15 USD (3 pips × 5 USD per pip for 0.5 lots). If you reject, you miss the trade and the market moves to 1.2510. In this case, accepting the requote might have been better. Another scenario: you use a limit order to buy at 1.2500, and the market reaches that price. Your order is filled without requote, saving you the 15 USD. This example shows how limit orders can help Luxembourg traders avoid requotes.

Regulatory Context for Luxembourg Traders
The local financial authority in Luxembourg regulates forex brokers to ensure fair trading practices. Brokers must be licensed and comply with strict rules about order execution, including how they handle requotes. The regulator requires brokers to disclose their execution model and any potential requote policies. This transparency helps Luxembourg traders make informed decisions. If a broker violates these rules by deliberately requoting to disadvantage traders, they can face penalties. As a Luxembourg trader, you should always verify a broker's license on the regulator's official website. Trading with a regulated broker gives you recourse if you experience unfair requotes. Additionally, the regulator may impose leverage limits or other protections that affect how requotes impact your trades. Always stay updated on regulatory changes that could affect your trading.

• Check the Broker's Execution Model: Always verify if your broker uses a 'dealing desk' or 'STP/ECN' model. Dealing desk brokers are more likely to requote. For Luxembourg traders, STP/ECN brokers are generally better for avoiding requotes.
• Use a Demo Account First: Before depositing real money via Bank Transfer, Skrill, or USDT, test the broker's execution speed and requote frequency on a demo account. This gives you a realistic idea of what to expect.
• Avoid Trading During News Releases: Major economic news from the US or Eurozone can cause extreme volatility and requotes. If you must trade news, use limit orders to control your entry price.
• Set a Maximum Requote Tolerance: Some platforms allow you to set a maximum requote distance (e.g., 0.5 pips). If the requote exceeds this, the order is canceled. This protects you from large price deviations.
• Monitor Your Trade Log: Regularly review your trade history to see how many requotes occurred. If you notice many requotes, consider switching brokers or adjusting your trading strategy.

Final Thoughts for Luxembourg Traders
Requotes are a reality in forex trading, but they don't have to hurt your bottom line. By choosing a broker regulated by the local financial authority in Luxembourg, using instant funding methods like Skrill or USDT, and employing limit orders, you can minimize requotes. Remember to test your broker's execution on a demo account first and trade during liquid hours. If you experience frequent requotes, consider switching to an ECN/STP broker that offers 'no requote' execution. Your next step is to review your current broker's execution policy and compare it with alternatives. For more detailed comparisons, visit comparebroker.io to find the best broker for your trading style in Luxembourg.