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

What Exactly is a Requote?

A requote occurs when you place a market order (buy or sell) at a specific price, but the market moves before your order is filled. Your broker then sends a message asking if you accept the new current price. This is common with market maker brokers and during fast-moving markets.

How Does a Requote Work?

Imagine you want to buy EUR/USD at 1.1000. You click 'buy,' but the price jumps to 1.1005. Instead of executing at 1.1000, the broker sends a requote asking if you accept 1.1005. You must decide instantly. If you reject, the trade is canceled. This can be frustrating for Madagascar traders who rely on quick entries.

Why Does it Matter for Madagascar Traders?

Madagascar retail traders often use smaller accounts (e.g., $100–$500 USD). A requote of even 5 pips can mean losing 1–2% of your account. Also, your internet connection may be slower, causing more requotes. Using brokers with instant execution reduces this risk.

Real Example with USD

You trade USD/MGA (US Dollar to Malagasy Ariary) via a synthetic pair or cross rate. You place a buy order at 4500 MGA per USD. The broker requotes you at 4505 MGA. If you accept, you pay more for each USD, reducing your potential profit. Over many trades, requotes eat into your returns.

For Madagascar traders, requotes are especially relevant because most retail forex brokers operate offshore. Local payment methods like Bank Transfer (often taking 2–5 business days), Skrill (instant but with fees), and USDT (cryptocurrency-based) affect how quickly you can fund your account. Delayed funding can lead to missed trade entries and requotes when you finally place orders.

The local financial authority in Madagascar does not have strict forex regulations. This means some brokers may use requotes as a tactic to delay executions and profit from price movements. Always choose brokers with transparent execution policies and negative balance protection. Trading during low volatility hours (e.g., early morning local time) can also reduce requotes.

1. Choose an ECN/STP Broker
   Select a broker that offers direct market access. In Madagascar, brokers like IC Markets or XM are popular and provide fast execution with fewer requotes.
2. Use Limit Orders Instead of Market Orders
   Place limit orders to specify your desired price. This avoids requotes because the order only executes at your price or better.
3. Trade During Liquid Hours
   Trade when major markets (London, New York) are open. Madagascar time is UTC+3, so London session starts at 9 AM local time, reducing requotes.
4. Check Your Internet Speed
   Use a stable connection or a VPN. Madagascar’s internet can be slow; a delay of even 1 second can cause a requote.

Requote vs. Instant Execution: Instant execution brokers ask for requotes when prices change. Market execution brokers execute at the next available price (slippage). For Madagascar traders, instant execution gives you control but can cause delays. Market execution is faster but may result in worse prices. If you trade small amounts (e.g., $100 USD), requotes can hurt more because each pip matters. Choose based on your risk tolerance.

When you place a market order, your broker tries to execute it at the current ask/bid price. But if the price changes in milliseconds, the broker cannot fill your order. Instead, they send a requote: a pop-up window showing the new price. You can accept or reject. For Madagascar traders, this often happens when trading USD pairs during news events. For example, if the US releases jobs data, the USD/MGA rate can move 10 pips instantly. Your broker requotes you, and you must decide quickly. Using a fast internet connection and a broker with low latency reduces requotes.

Example 1: You deposit $200 USD via Skrill into your forex account. You want to buy EUR/USD at 1.1200. The broker requotes you at 1.1203. If you accept, you pay 3 pips more. Over 100 trades, that’s 300 pips lost — about $30 USD on a standard lot.

Example 2: You trade USD/MGA via a broker offering synthetic pairs. You place a sell order at 4500 MGA. The broker requotes you at 4495 MGA. You reject, and the price moves further against you. You miss the trade entirely. This is common for Madagascar traders using market orders during volatile times.

The local financial authority in Madagascar (Commission de Supervision Financière) oversees financial services but has limited forex regulations. This means many brokers targeting Madagascar traders are offshore. While requotes are not illegal, brokers must disclose their execution policy. Always read the terms and conditions. If a broker is not regulated by a reputable body (FCA, ASIC, CySEC), they may use requotes unfairly. For safety, choose a broker that is regulated in Europe or Australia and accepts Madagascar clients via Skrill, USDT, or Bank Transfer.

• Use a Demo Account First: Test your broker’s execution speed with a demo account. Madagascar traders can practice without risking real USD.
• Avoid News Trading: During major economic news (e.g., US NFP), requotes spike. Close positions or use pending orders.
• Set Slippage Tolerance: Some brokers allow you to set maximum slippage. This reduces requotes but may cause partial fills.
• Monitor Your Broker’s Server: Choose a broker with servers close to Madagascar (e.g., in Europe). Lower latency means fewer requotes.
• Use MT4/MT5 with VPS: A Virtual Private Server (VPS) can reduce requotes by keeping your platform online 24/7.

Requotes are a common but avoidable issue in forex trading. For Madagascar traders, understanding requotes helps protect your USD profits and choose better brokers. Use limit orders, trade during liquid hours, and pick an ECN broker. Always verify broker regulation with the local financial authority or international bodies. Start with a demo account to test execution. If you experience frequent requotes, switch brokers immediately. Ready to trade? Compare brokers on comparebroker.io to find the best fit for Madagascar traders.