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

What Exactly is a Requote?

A requote happens when you place a market order or a pending order, but the broker cannot execute it at the price you requested. Instead, the broker sends a new price quote back to you, asking if you want to accept it. This is different from instant execution, where the order is filled immediately at the requested price. For Portugal traders, requotes are more common with brokers using a market maker model, where the broker acts as the counterparty to your trade.

How Requotes Work in Practice

Imagine you want to buy 10,000 units of EUR/USD at 1.1050. You click 'buy' and the broker checks the current market price. If the market has moved to 1.1052, the broker sends a requote offering you 1.1052 instead. You then have to decide whether to accept the new price or cancel the order. This delay can be frustrating, especially for day traders or scalpers in Portugal who rely on fast execution.

Why Requotes Matter for Portugal Traders

Requotes increase your trading costs and can ruin a carefully planned strategy. For example, if you are trading with a $1,000 account and using leverage, a requote of just 2 pips on a standard lot can cost $20. Over many trades, this adds up. Portugal traders using Bank Transfer or Skrill to fund accounts should also consider that requotes can affect their risk management, especially when trading during low liquidity hours like the Asian session.

How to Identify a Requote

Most trading platforms, like MetaTrader 4 or 5, will display a pop-up window asking if you accept the new price. Some brokers also log requotes in the trade history. If you notice frequent requotes, it may be a sign that your broker has poor execution or uses a dealing desk. Portugal traders should test brokers with a demo account first to check for requotes.

For Portugal traders, requotes are particularly relevant when trading with local brokers or international brokers that accept Portuguese clients. Many Portugal traders use Bank Transfer to deposit funds, which can take 1-3 business days. If you face a requote during that time, you might miss a trading opportunity. Skrill and USDT deposits are faster, but requotes can still occur. The local financial authority in Portugal, the CMVM (Comissão do Mercado de Valores Mobiliários), does not specifically regulate requotes, but it does require brokers to provide fair execution. Portugal traders should always check a broker's execution policy before funding an account. Additionally, because Portugal is in the CET time zone, the overlap of London and New York sessions (13:00-17:00 GMT) offers the best liquidity, reducing requote risk. Avoid trading during the Asian session or major news events if you want to minimize requotes.

1. Choose a Broker with No Requote Execution
   Research brokers that offer true ECN or STP execution, which matches orders directly with liquidity providers. Avoid market makers that use a dealing desk. Check Portugal-specific reviews on CompareBroker.io.
2. Use Limit Orders Instead of Market Orders
   Limit orders specify the exact price you want, so the broker cannot requote you. This is especially useful for Portugal traders who plan entries in advance.
3. Trade During High Liquidity Hours
   Trade during the London session (08:00-17:00 GMT) when the EUR/USD pair is most liquid. This reduces the chance of requotes due to low liquidity.
4. Test with a Demo Account
   Before depositing real funds via Bank Transfer or Skrill, open a demo account and place several market orders to see how often requotes occur.

Requotes vs. Instant Execution: Instant execution fills your order at the requested price or rejects it entirely, without offering a new price. For Portugal traders, instant execution is preferable because it eliminates requotes. However, instant execution is more common with ECN brokers that charge a commission. Market maker brokers often use requotes to protect themselves from adverse price movements. If you trade frequently, choose a broker with instant execution and a commission-based fee structure. This is especially important for Portugal traders using Skrill or USDT, as these payment methods allow quick withdrawals, but requotes can delay trade execution.

When you place a market order in forex, the broker attempts to fill it at the current market price. If the price moves before the order is processed, the broker may send a requote with a new price. For Portugal traders, this often happens when trading EUR/USD during the London close or when liquidity is low. The requote process is simple: you receive a pop-up with the new price, and you must accept or reject it within seconds. If you reject, the order is cancelled. This can be frustrating if you are using a scalping strategy that requires instant execution. To avoid this, some brokers offer 'instant execution' where orders are filled at the requested price even if it means the broker takes a small loss. However, this is rare for Portugal traders using standard accounts.

Example 1: João, a Portugal trader, wants to sell 1 standard lot of EUR/USD at 1.1050. He clicks 'sell' but the broker sends a requote offering 1.1048 instead. João accepts the requote, losing $20 on the trade (2 pips x $10 per pip). Over 100 trades, this adds up to $2,000 in extra costs. Example 2: Maria uses a broker with no requote execution. She places a buy order for 0.5 lots of GBP/USD at 1.2500. The broker fills her order instantly at 1.2500, even though the market moved to 1.2502. Maria saves $10 compared to a requote scenario. These examples show how requotes can eat into profits for Portugal traders.

Regulatory Context for Portugal: The local financial authority in Portugal is the CMVM (Comissão do Mercado de Valores Mobiliários). The CMVM oversees forex brokers operating in Portugal and ensures they follow EU MiFID II rules. While the CMVM does not specifically ban requotes, it requires brokers to execute orders at the best available price and to disclose their execution policy. Portugal traders should only use brokers that are registered with the CMVM or authorized under the ESMA passport. This provides protection in case of disputes. Always verify a broker's license on the CMVM website before depositing funds via Bank Transfer, Skrill, or USDT.

• Check Execution Speed: Use a VPS (Virtual Private Server) if you trade manually from Portugal. This reduces latency and requote chances.
• Avoid News Trading: Major news events like ECB announcements cause high volatility and requotes. Portugal traders should avoid trading 30 minutes before and after news.
• Monitor Spreads: Wide spreads often lead to requotes. Use a broker with tight, fixed spreads for major pairs like EUR/USD.
• Use a Demo First: Test your broker's execution with a demo account funded with virtual USD. Place 50 market orders and count requotes.
• Read the Fine Print: Some brokers advertise 'no requotes' but still requote during volatile markets. Read the terms and conditions carefully.

Requotes are a common but avoidable issue in forex trading. For Portugal traders, the key is to choose a broker with fast, no-requote execution, trade during liquid hours, and use limit orders. By understanding how requotes work and following the tips in this guide, you can reduce costs and trade more confidently. Start by checking your current broker's execution model, or use CompareBroker.io to find a Portugal-friendly broker with transparent pricing. Remember, a good broker can make all the difference in your trading journey.