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

What Exactly is a Requote?

A requote occurs when you place a market order but the price moves before your broker can execute it. Instead of filling your order at the original price, the broker sends a request asking if you accept the new price. This is common with brokers that use a dealing desk model, where human intervention or manual processing can cause delays.

How Does a Requote Work?

When you click 'buy' or 'sell', your order is sent to the broker. If the market price changes in the milliseconds it takes to process, the broker may reject your order and present a new quote. You then have the option to accept or decline. For example, if you want to buy 1 lot of EUR/USD at 1.2000, but the broker's system sees the price at 1.2002, you'll get a requote at 1.2002.

Why Requotes Matter for Samoa Traders

Requotes can impact your trading costs and execution speed. In Samoa, where internet latency can be higher due to geographic distance from major forex servers, requotes may occur more frequently. This can be costly when trading with USD, especially if you are scalping or day trading. Requotes also increase slippage risk, which can turn a winning trade into a losing one.

How to Minimise Requotes

To avoid requotes, choose a broker that offers market execution or instant execution with no requotes. Use a VPS (Virtual Private Server) to reduce latency. Also, trade during high liquidity sessions like the London or New York open. Limit orders can help because they specify a price, but they may not always fill during fast markets.

For Samoa traders, requotes are particularly relevant due to local internet infrastructure and the use of specific payment methods. Many Samoa traders fund their accounts via Bank Transfer, Skrill, or USDT, which can take time to process. Delays in funding can lead to missed trade entries, but requotes add another layer of execution risk. The local financial authority does not have specific rules against requotes, so it's up to you to choose a broker with transparent execution policies. When trading with USD, a requote of even 1 pip can affect your bottom line, especially if you trade larger volumes. Always test a broker's execution speed with a demo account before depositing real funds. Additionally, using a broker that accepts Skrill or USDT can speed up deposits, but you still need fast execution to avoid requotes.

1. Check Broker Execution Type
   Before opening an account, confirm if your broker offers instant execution, market execution, or no requotes. For Samoa traders, brokers with no requotes are ideal.
2. Test with a Demo Account
   Use a demo account to see how often requotes occur during different market conditions. This helps you understand the broker's execution quality.
3. Optimise Your Internet Connection
   Use a wired internet connection or a VPS hosted near your broker's servers to reduce latency. This can minimise requotes for Samoa traders.
4. Trade During Liquid Hours
   Trade during the London or New York sessions when liquidity is high. Avoid trading during major news releases unless you use limit orders.

Requotes are similar to slippage but give you control. Slippage fills your order automatically at the new price, while requotes let you decide. For Samoa traders, requotes can be beneficial when you want to avoid a bad price, but they can also cause delays. Some brokers offer 'instant execution' which can lead to requotes, while 'market execution' usually fills at the next available price without requotes. Knowing the difference helps you choose the right broker for your style.

When you place a market order in forex, your broker sends it to a liquidity provider or processes it internally. If the price changes before the order is executed, the broker may send a requote. For example, you want to sell USD/CHF at 0.9200, but the market moves to 0.9198. The broker asks if you accept 0.9198. In Samoa, this can happen more often due to higher latency. Using a broker with a straight-through processing (STP) model can reduce requotes because orders are sent directly to liquidity providers without manual intervention.

Imagine you are a Samoa trader with a USD account. You want to buy 0.1 lots of USD/JPY at 110.50. You click 'buy', but the broker sends a requote at 110.52. If you accept, your trade costs 2 pips more. Over many trades, this adds up. Another example: you are trading GBP/USD during the London session. The price is 1.3800, but due to high volatility, you get a requote at 1.3805. You reject it, and the price moves to 1.3810. You miss the trade but avoid a loss. These examples show how requotes can affect your profitability and decision-making.

The local financial authority in Samoa oversees forex brokers operating within the country. However, many Samoa traders use offshore brokers regulated by bodies like the FMA or FSA. The local authority does not have specific rules about requotes, but it does require brokers to act in the best interest of clients. If you experience unfair requoting, you can file a complaint with the authority. It's important to choose a broker that is transparent about its execution model. Regulated brokers are generally more reliable and less likely to engage in predatory requoting practices.

• Use Limit Orders: Limit orders specify your price, reducing the chance of requotes. They are ideal for Samoa traders who want precise entries.
• Monitor News Events: Economic news can cause volatility and requotes. Avoid trading during high-impact news if you are not using pending orders.
• Choose a Reliable Broker: Look for brokers with good reviews from Samoa traders, especially those offering no requote policies.
• Keep Your Platform Updated: Outdated trading platforms can cause delays. Always use the latest version of MetaTrader or cTrader.
• Use a VPS: A VPS can reduce latency and requotes for Samoa traders. Many brokers offer free VPS for active traders.

Requotes are a common part of forex trading, but they can be managed with the right knowledge and tools. For Samoa traders, understanding requotes helps you choose better brokers and improve your trading results. Always test your broker's execution with a demo account, use a VPS if possible, and trade during liquid hours. If you want to learn more, compare brokers on CompareBroker.io to find one that suits your needs. Remember, avoiding requotes starts with informed decisions.