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

What Exactly is a Requote?

A requote is a message from your broker indicating that the price you wanted to trade is no longer available. Instead of executing your order instantly, the broker asks if you want to accept a new price. This typically happens in fast-moving markets or when trading with brokers that use a 'market maker' execution model. For Taiwan traders, requotes are most common when trading during overlapping sessions like London-New York or during local economic data releases.

How Requotes Work in Practice

When you place a market order to buy USD/TWD at 30.50, the broker checks the current liquidity. If the price moves to 30.52 before your order reaches the server, the broker may send a requote: 'Price moved, do you want to buy at 30.52?' You must then accept or reject. This delay can be frustrating, especially if you are using a retail forex account with a smaller broker in Taiwan. Requotes are more common with fixed spread brokers than with variable spread ECN brokers.

Why Requotes Matter for Taiwan Traders

For Taiwan traders, requotes directly impact profitability. If you trade with a $1,000 USD account and get requoted frequently, you might miss entry points or end up with worse prices. This is especially important when trading USD/TWD, where pip values are smaller but spreads can widen. Using Skrill or USDT deposits does not affect requote frequency, but choosing a broker with fast execution and low latency servers can help. Taiwan's local financial authority requires brokers to disclose their execution policy, so always check before depositing.

For Taiwan traders, requotes are particularly relevant because many local retail forex traders use Bank Transfer, Skrill, or USDT to fund accounts. These payment methods are popular due to their convenience and low fees, but they do not influence execution speed. The key factor is your broker's infrastructure—brokers with servers in Hong Kong or Singapore offer lower latency for Taiwan traders, reducing requote chances. Additionally, Taiwan's local financial authority (the Financial Supervisory Commission) mandates that brokers operating in Taiwan must provide transparent order execution policies. This means you have the right to know whether your broker uses requotes as part of their model. Many Taiwan traders prefer ECN brokers because they typically avoid requotes by using a 'no dealing desk' model. However, ECN brokers may still experience slippage. Understanding your broker's execution model is crucial before you start trading with real USD funds.

1. Check Your Broker's Execution Model
   Before depositing via Bank Transfer or Skrill, confirm whether your broker uses market maker (requotes likely) or ECN/STP (requotes rare). Look for 'instant execution' vs 'market execution' in the terms.
2. Test with a Demo Account
   Open a demo account with a Taiwan-friendly broker and place trades during volatile hours. Note how often you receive requotes. This helps you decide if the broker suits your trading style.
3. Use Limit Orders Instead of Market Orders
   Limit orders specify the exact price you want, reducing requote chances. If the market moves, your order simply waits until the price returns, avoiding requotes entirely.
4. Monitor Economic Calendar
   Avoid trading during high-impact news events like US interest rate decisions or Taiwan export data releases. These cause rapid price movements that trigger requotes for retail traders.

Requote vs. Instant Execution: Instant execution brokers fill your order at the price you see, but only if the price hasn't moved. If it has, they requote. Market execution brokers fill at the next available price (slippage). For Taiwan traders, market execution is generally preferred because it avoids requotes. However, market execution can lead to negative slippage during fast markets. Compare your broker's execution model before depositing via USDT or Bank Transfer.

A requote works through a simple but frustrating process: you click to buy 1 lot of USD/TWD at 30.50, but the broker's system sees the price has already moved to 30.52. Instead of filling your order at 30.52 (which would be slippage), the broker sends a pop-up asking if you want to buy at 30.52. You must manually click 'Accept' or 'Cancel.' This happens because the broker is a market maker or uses a dealing desk that re-quotes prices to protect itself from adverse movement. For Taiwan traders, this can happen multiple times per minute during volatile news events. The delay also depends on your internet connection—using a wired connection in Taipei may help reduce latency compared to mobile data.

Example 1: You are a Taiwan trader with a $5,000 USD account. You place a market order to sell USD/TWD at 30.45 during the US session. The broker requotes you at 30.47. You accept, losing 2 pips (about $20 on a standard lot) before the trade even starts. Over 50 trades, this adds up to $1,000 in lost potential profit.

Example 2: You use a limit order to buy USD/TWD at 30.50. The market drops to 30.48, then rebounds. Your limit order fills at 30.50 without a requote because you specified the price. This saves you from requotes entirely. For Taiwan traders, using limit orders is the most effective way to avoid requotes, especially when trading with Skrill-funded accounts where speed matters less.

Taiwan's forex market is regulated by the Financial Supervisory Commission (FSC), which oversees all financial services including forex brokers. While the FSC does not directly regulate offshore brokers, it requires local brokers to follow strict execution standards. For Taiwan traders, using a broker regulated by the FSC or a reputable international body ensures that requotes are disclosed in the execution policy. The FSC also mandates that brokers provide clear information about spreads, commissions, and execution models. If you face unfair requote practices, you can file a complaint with the FSC's Securities and Futures Bureau. Always check if your broker is licensed to operate in Taiwan before depositing via Skrill or USDT.

• Choose ECN Brokers: ECN brokers match orders directly with liquidity providers, reducing requote frequency. They are ideal for Taiwan traders who trade frequently with USD.
• Use a VPS: A Virtual Private Server located near your broker's servers (e.g., in Hong Kong) reduces latency and minimizes requotes. This is especially useful for algorithmic traders.
• Avoid Peak Hours: Trade during Asian session (Tokyo/Singapore) when volatility is lower. Requotes are more common during London and New York overlaps.
• Set Slippage Tolerance: Some platforms allow you to set a maximum slippage amount. This can prevent requotes by allowing the trade to execute at a slightly different price.
• Test with Small Lots: Start with micro lots (0.01) when using a new broker. This limits potential losses from requotes while you evaluate execution quality.

Requotes are a common part of retail forex trading, but they don't have to ruin your strategy. As a Taiwan trader, your best defense is choosing a broker with transparent execution, low latency servers, and a clear policy on requotes. Start by testing a demo account, then deposit small amounts via Bank Transfer or USDT to evaluate real-world execution. Remember to check your broker's regulatory status with Taiwan's Financial Supervisory Commission. By understanding requotes and using limit orders, you can trade USD pairs more confidently. Ready to trade? Compare top brokers for Taiwan traders on CompareBroker.io today.