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

What Exactly is a Requote?

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 movement or low liquidity. Instead, the broker sends a message asking if you want to accept a new price — often slightly higher (for buys) or lower (for sells). This is different from instant execution, where the trade goes through at the quoted price immediately.

How Requotes Work in Practice

Imagine you are trading EUR/MYR and the current ask price is 4.6500. You click 'Buy' at this price. If the market moves to 4.6505 before your order reaches the broker, you receive a requote showing the new price of 4.6505. You can either accept the new price or reject it. For Malaysia traders, this delay can be frustrating, especially when using FPX deposits that may take a few seconds to confirm — though FPX is generally instant for deposits.

Why Requotes Matter for Malaysia Traders

Malaysia traders often trade during the Asian session when liquidity is lower, increasing requote chances. Additionally, many local brokers offer fixed spreads, which are more prone to requotes during news events. Since Islamic finance principles require fair and transparent transactions, requotes must be handled ethically — brokers should not exploit requotes to widen spreads unfairly. SC Malaysia monitors broker conduct to ensure fairness.

For Malaysia traders, requotes are particularly relevant due to the widespread use of FPX and bank transfers for deposits. While FPX is instant, some brokers may have slower execution systems that increase requote frequency. USDT deposits are also popular among crypto-savvy traders, but they do not affect requote rates directly. SC Malaysia regulates forex brokers under the Capital Markets and Services Act 2007, requiring them to maintain fair execution practices. When choosing a broker, look for those that offer 'no requote' or 'instant execution' policies, as these are better suited for Malaysia traders who value speed and transparency. Islamic account holders should also check that requotes do not involve any element of gharar (uncertainty) that conflicts with Shariah law.

1. Check Broker Execution Type
   Before depositing via FPX or bank transfer, confirm whether the broker offers market execution or instant execution. Market execution typically avoids requotes but may cause slippage, while instant execution is more prone to requotes.
2. Trade During High Liquidity Hours
   Malaysia traders should focus on the London-New York overlap (8:00 PM to 12:00 AM MYT) when liquidity is highest, reducing requote chances. Avoid trading during Asian lunch hours or Malaysian public holidays.
3. Use Limit Orders Instead of Market Orders
   Limit orders allow you to specify the exact price you want, avoiding requotes altogether. This is especially useful for Malaysia traders who plan trades around economic news releases.
4. Test with a Demo Account
   Open a demo account with a broker regulated by SC Malaysia and test their execution speed during different market conditions. This helps you understand how often requotes occur before depositing real MYR.

Requotes vs. Instant Execution: Instant execution brokers guarantee that your trade will be filled at the quoted price, but they may reject the order if the price changes. This is common with market makers. Requotes, on the other hand, give you the option to accept a new price. For Malaysia traders, instant execution is ideal for scalping, while requotes are more suited for longer-term strategies. Always check the broker's order execution policy before depositing via FPX or bank transfer.

When you place a market order in forex, your broker sends it to a liquidity provider or the interbank market. If the price moves before the order is filled, the broker receives a new price from the provider. The broker then sends you a requote asking if you want to trade at this new price. For Malaysia traders using MYR-denominated accounts, this can mean a difference of several pips. For example, if you want to buy USD/MYR at 4.2000, but the market moves to 4.2010, you may receive a requote at 4.2010. The broker typically gives you a few seconds to decide. If you accept, the trade executes at the new price. If you reject, the order is cancelled.

Example 1: Ahmad, a Malaysia trader, deposits RM10,000 via FPX into his broker account. He sees EUR/MYR at 4.6500 and places a buy market order. Due to a sudden euro strength, the broker requotes him at 4.6505. Ahmad accepts, and his trade opens 5 pips higher than expected. His potential profit decreases by RM5 per standard lot.

Example 2: Siti uses a USDT deposit to fund her Islamic account. She wants to sell USD/MYR at 4.1800. The broker requotes her at 4.1795. She rejects the requote and waits for the price to return to her level. Five minutes later, she enters the trade at 4.1800 without a requote. This shows how patience can help avoid requotes.

Example 3: A Malaysia trader uses bank transfer to deposit RM5,000. During the Asian session, low liquidity causes multiple requotes on GBP/MYR trades. The trader switches to limit orders and avoids requotes entirely, improving their trading experience.

SC Malaysia (Suruhanjaya Sekuriti Malaysia) regulates forex brokers under the Capital Markets and Services Act 2007. Brokers must obtain a Capital Markets Services License (CMSL) to offer forex trading to Malaysia residents. SC Malaysia requires brokers to have clear order execution policies, including how requotes are handled. This protects traders from unfair practices. If you encounter excessive requotes, you can file a complaint with SC Malaysia. Always check the SC Malaysia website for the latest list of licensed brokers before depositing via FPX, bank transfer, or USDT. Trading with an unregulated broker puts your MYR at risk.

• Monitor News Events: Economic news releases like Bank Negara Malaysia interest rate decisions can cause high volatility and requotes. Avoid trading 5 minutes before and after major news.
• Choose the Right Broker: Brokers with ECN/STP models generally have fewer requotes than market makers. Check SC Malaysia's list of licensed brokers before depositing via FPX.
• Use VPS for Speed: A Virtual Private Server (VPS) can reduce latency between your platform and the broker's server, lowering requote chances for Malaysia traders.
• Set Slippage Tolerance: On MetaTrader, you can set slippage tolerance in the order dialog. A higher tolerance reduces requotes but may cause larger slippage.
• Keep Small Position Sizes: Larger orders are more likely to face requotes, especially during low liquidity. Start with mini or micro lots in MYR-denominated accounts.

Requotes are a normal part of forex trading, but they can impact your profitability if not managed properly. For Malaysia traders, the key is to choose a broker regulated by SC Malaysia, understand their execution model, and trade during high liquidity periods. Use limit orders to avoid requotes entirely, and always test with a demo account before depositing real MYR via FPX or bank transfer. If you experience persistent requotes, consider switching to an ECN broker. Ready to start? Compare SC Malaysia-licensed brokers on CompareBroker.io and find one that offers fast execution and Islamic accounts.