What Is a Requote in Forex? A Complete Guide for United Kingdom Traders

What Exactly Is a Requote?

A requote occurs when you place a market order at a specific price, but the broker's system cannot execute that exact price due to rapid price movement or insufficient liquidity. The broker then sends a new price quote back to you, asking if you want to trade at that new price. You have the option to accept or decline. For example, if you try to buy GBP/USD at 1.3000 but the market moves to 1.3005, the broker may requote you at 1.3005. This is different from slippage, where the trade executes automatically at a different price.

How Does a Requote Work in Practice?

When you click 'buy' or 'sell' on your trading platform, your order is sent to your broker's server. If the broker uses market execution, they try to fill your order at the best available price. If the price changes before the order is processed, the broker sends a requote. You then see a pop-up window asking you to confirm the new price. If you accept, the trade opens at that new price. If you decline, no trade is opened. This process can be frustrating for UK traders who rely on fast execution, especially during news events like the UK CPI release or Non-Farm Payrolls.

Why Requotes Matter for UK Traders

For United Kingdom traders, requotes are particularly relevant because the FCA mandates that brokers provide 'best execution' and transparent order handling. Requotes can be a sign of a broker with poor liquidity or a dealing desk model. Many sophisticated UK retail traders prefer ECN/STP brokers that offer no-requote execution, though these may have commission-based pricing. Additionally, UK traders using GBP-denominated accounts should be aware that requotes can affect the final price in pounds, especially when trading cross pairs like EUR/GBP or GBP/JPY.

Practical Example with GBP

Imagine you are a UK trader with a GBP-denominated account. You want to sell GBP/USD at 1.3500. The market is volatile after the Bank of England interest rate decision. You place a market sell order at 1.3500, but the broker's system shows the price has moved to 1.3495. The broker sends a requote: 'Sell GBP/USD at 1.3495?' You accept, and the trade opens at 1.3495. If you had declined, you would have missed the move. This example shows how requotes can cost you 5 pips in a fast market.

For United Kingdom traders, requotes are shaped by the FCA's strict regulatory framework. The FCA requires brokers to have adequate liquidity and to disclose their order execution policy. This means UK traders should always read the 'Order Execution Policy' document provided by their broker. Many FCA-regulated brokers now offer 'no requote' or 'instant execution' accounts, but these often come with wider spreads or higher commissions. UK traders also benefit from local payment methods like Bank Transfer, PayPal, and Skrill. While these do not directly affect requotes, they influence how quickly you can fund your account and react to market opportunities. Sophisticated UK retail traders often use ECN accounts with direct market access to minimise requotes. Additionally, the London session offers the highest liquidity, which naturally reduces requote frequency. If you trade during Asian or US sessions, requotes may be more common due to lower liquidity. Always test a broker's execution speed with a demo account before depositing real funds via Bank Transfer or e-wallets.

1. Identify Your Broker's Execution Model
   Check if your broker uses market execution or instant execution. Market execution often allows requotes, while instant execution may reject orders if the price is unavailable. UK traders should review the broker's terms on the FCA register.
2. Choose the Right Account Type
   Select an ECN or STP account if you want to minimise requotes. These accounts typically have no requotes but charge a commission. Standard accounts may have requotes but lower spreads.
3. Trade During Liquid Hours
   The London session (8:00 AM to 4:00 PM GMT) offers the highest liquidity for GBP pairs, reducing the chance of requotes. Avoid trading during major news events if you are concerned about requotes.
4. Use Limit Orders Instead of Market Orders
   Limit orders specify the exact price you want to trade at. If the market does not reach that price, no trade occurs. This avoids requotes entirely, unlike market orders that can trigger requotes in fast markets.

For UK traders, requotes are distinct from 'slippage' (where the trade executes automatically at a different price) and 'order rejection' (where the order is cancelled). Another related concept is 'partial fills', where only part of your order is filled at the requested price and the rest is requoted. UK traders should also compare 'market execution' (allows requotes) vs 'instant execution' (rejects orders if price unavailable). ECN brokers often have no requotes but charge commissions, while standard brokers may have requotes but lower account minimums.

When a UK trader places a market order, the broker's system attempts to fill it at the current price. If the price moves before the order is executed, the broker sends a requote with a new price. For example, if you try to buy GBP/JPY at 185.00 but the market jumps to 185.05, the broker asks: 'Buy GBP/JPY at 185.05?' You can accept or decline. This process happens in milliseconds but can be delayed by poor internet or broker latency. UK traders using Bank Transfer to deposit may experience slower account funding, which can affect their ability to react to requotes quickly.

Example 1: You are a UK trader with a GBP account. You want to sell EUR/GBP at 0.8500. The market is moving fast after UK retail sales data. Your broker sends a requote at 0.8498. You accept, and the trade opens 2 pips worse than planned. Example 2: You try to buy GBP/USD at 1.3200 during the London open. The broker requotes at 1.3202. You decline, and the price moves to 1.3205. You miss the trade. These examples show how requotes can cost pips or cause missed opportunities for UK traders.

The Financial Conduct Authority (FCA) strictly regulates forex brokers operating in the United Kingdom. Under FCA rules, brokers must provide 'best execution' for client orders, meaning they must take all reasonable steps to achieve the best possible result for you. This includes handling requotes transparently. Brokers must disclose their order execution policy, including how requotes are handled. The FCA also requires brokers to have adequate liquidity providers and to segregate client funds. For UK traders, this means you have legal recourse if a broker abuses requotes. Always check the FCA register for your broker's authorisation status. The FCA also imposes leverage limits (up to 30:1 for major forex pairs) to protect retail traders from excessive risk.

• Test with a demo account: Before depositing real money, test your broker's execution speed and requote frequency using a demo account. This is especially important for UK traders using Bank Transfer or PayPal.
• Monitor news events: Avoid trading during high-impact UK events like the Bank of England rate decision or UK GDP release. Requotes are more common during these times.
• Choose brokers with low latency: Select brokers with servers close to London to reduce execution delays. Many FCA-regulated brokers have data centres in the UK.
• Use VPS for automated trading: If you use Expert Advisors (EAs), a Virtual Private Server (VPS) can reduce requotes by ensuring stable connectivity to your broker's server.
• Read the fine print: Always check the broker's terms for requote policies. Some brokers charge a fee for requotes or have different rules for different account types.

Understanding requotes is essential for United Kingdom traders who want to execute trades efficiently and avoid unexpected costs. By choosing the right broker, using limit orders, and trading during liquid hours, you can minimise requotes. Always verify your broker is FCA-regulated and read their order execution policy. Start by testing a demo account with a reputable FCA broker that accepts Bank Transfer, PayPal, or Skrill. For further reading, explore our guides on slippage, execution models, and how to choose the best forex broker in the United Kingdom. Take control of your trading today by making informed decisions about requotes.