What is a Requote in Forex? A Complete Guide for Switzerland 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 the order is filled. Instead of executing at your requested price, the broker asks you to accept a new price. This is common in fast-moving markets or when liquidity is low. For Switzerland traders, requotes often happen when trading USD/CHF or EUR/USD during off-peak hours.

How Requotes Work in Practice

Imagine you want to buy 10,000 units of USD/CHF at 0.9200. You click 'buy' but the broker responds with 'Requote: 0.9205'. You can accept or reject. If you accept, you pay 5 pips more. This increases your entry cost and reduces potential profit. In Switzerland, brokers must disclose their requote policy under local financial authority rules.

Why Requotes Matter for Switzerland Traders

Switzerland traders often use USD-denominated accounts, making them sensitive to exchange rate fluctuations. Requotes can erode profits, especially for scalpers or day traders. Additionally, the Swiss franc (CHF) is a major currency, so requotes on CHF pairs are common. Understanding requotes helps you choose the right broker and execution method.

For Switzerland traders, requotes are particularly relevant due to the local trading environment. The local financial authority requires brokers to be transparent about execution policies. When depositing via Bank Transfer, Skrill, or USDT, you should verify the broker's requote policy. Many Swiss traders prefer brokers that offer 'no requote' execution, though this may come with higher spreads. Additionally, the Swiss franc's safe-haven status means requotes can spike during global uncertainty. Always test execution with a small deposit first. Using USD as your base currency means requotes can affect your margin calculations, especially if you trade multiple lots. Local brokers often have dedicated support for Switzerland traders, so don't hesitate to ask about requote rates before committing funds.

1. Choose a Broker with Transparent Execution
   Look for brokers regulated by the local financial authority that clearly state their requote policy. Avoid brokers that hide this information.
2. Test with a Demo Account
   Open a demo account and place market orders during different times of day. Note how often requotes occur, especially on USD pairs.
3. Deposit via Bank Transfer or Skrill
   Start with a small deposit using Bank Transfer or Skrill to test real execution. Monitor requote frequency with live funds.
4. Use Limit Orders
   Instead of market orders, use limit orders to specify your entry price. This avoids requotes entirely but may miss trades if the market moves away.

Requote vs. Instant Execution vs. Market Execution: For Switzerland traders, understanding these execution types is key. Instant execution (used by many Swiss brokers) has higher requote risk but allows you to set a specific price. Market execution fills at the best available price with no requote but may have slippage. Most retail traders prefer market execution for speed. However, if you need precise entry prices, instant execution may be better despite requotes. Compare both methods on a demo account before choosing.

When you place a market order in forex, your broker tries to fill it at the current price. If the price moves before the order reaches the broker's server, the broker sends a requote asking you to accept the new price. This is common with 'instant execution' brokers. For Switzerland traders, this process can be affected by your internet speed and server location. Using a VPS in Zurich or London can reduce latency. For example, if you try to buy USD/CHF at 0.9200 but the market moves to 0.9203, you'll receive a requote for 0.9203. You can accept or decline. If you accept, your entry price is worse by 3 pips.

Example 1: You trade EUR/USD with a USD account in Switzerland. You see a buy signal at 1.1000. You click 'buy' but the broker requotes at 1.1002. You accept and buy 0.10 lots. Your entry is 2 pips worse, costing you $2 on a 0.10 lot trade. Example 2: You trade USD/CHF during Swiss lunch hour (12:00-13:00 CET). The market is thin. You try to sell at 0.9150 but the broker requotes at 0.9145. You reject and wait. The price moves to 0.9140, missing your trade. These examples show how requotes affect your trading costs and timing in the Swiss context.

Regulatory Context for Switzerland Traders: The local financial authority oversees forex brokers in Switzerland. Brokers must follow strict rules on order execution, including transparent requote policies. While requotes are not banned, brokers must disclose them in their terms. For Switzerland traders, this means you have recourse if a broker abuses requotes. Always check the broker's regulatory status on the local financial authority's website. Regulated brokers are required to handle client funds separately and provide fair execution. This gives you protection that unregulated brokers cannot offer. If you experience unfair requotes, you can file a complaint with the local financial authority.

• Trade During High Liquidity: Trade USD pairs during London-New York overlap (14:00-17:00 CET) to reduce requote risk.
• Use a VPS: A Virtual Private Server (VPS) can reduce latency, lowering requote chances for Switzerland traders.
• Check Broker Reputation: Read reviews from other Switzerland traders on forums like ForexFactory or Swiss forums to see requote complaints.
• Start with Small Lots: Trade micro or mini lots (0.01-0.10) to minimize the impact of requotes while you learn.
• Consider ECN Brokers: ECN brokers typically have fewer requotes but charge commissions. Compare costs for your USD trading style.

Summary for Switzerland Traders: Requotes are a normal part of forex trading, but they can impact your profitability. By understanding what they are, how to avoid them, and how to choose the right broker, you can trade more confidently. Start by testing your broker with a small deposit via Bank Transfer or Skrill. Use limit orders and trade during liquid hours to minimize requotes. Always trade with a broker regulated by the local financial authority. Next step: open a demo account and practice handling requotes before going live. For more educational content, explore our other guides on forex trading in Switzerland.