Is it true that forex requotes are an indication that a forex broker is cheating? Requotes are conditions that are often considered detrimental to traders. Is that true?

What is forex requote?

Forex requote is a condition in which a trader executes an order at a certain price, but the broker responds to the trader's transaction request with a different price quote. Simply put, the time lag in order execution does not match the desired price. For example, you want to buy the EUR/USD pair at 1.5367, but when you place an order, the price suddenly changes to 1.5375. Usually, however, a requote announcement will appear on the trading platform to let the trader know that the price has moved. This will give you the opportunity to decide whether or not you are willing to accept that price and most prices after requotes are always worse than the price you ordered. That is why if you trade with a trusted forex broker, the broker will ask first if there is a requote through an automatic announcement before you decide to proceed with the order.

What causes requotes?

Under normal circumstances, forex requotes usually occur when the market is volatile. Conditions like this occur when there are high-impact fundamental news releases such as central bank announcements, NFP (Non-farm Payroll) and other important issues. This makes it difficult for the broker to execute the order at the price you requested. In such conditions it is not recommended for traders to open positions, especially for beginner traders. However, you should be vigilant if requotes occur frequently even when market conditions are normal. Similar to forex slippage, requote conditions are not preferred by traders. Why? Because it greatly affects the potential for trading profits. Imagine, if you want to buy at the original price of 1.4158 but in reality open a position at the level of 1.4165. The profit you can get certainly cannot be maximized. Let's say the price then moves up but only reaches the point of 1.4175, then the profit that should have been 17 pips (1.4175-1.4158) will only accumulate 10 pips (1.4175-1.4165) and your trading plan will not work as desired.

Then, how to avoid requotes?

1. Choosing a forex broker without requotes 

The first and easiest way to avoid forex requotes is to choose a forex broker that has the claim of providing trading conditions without requotes. You can see this excellent feature on the main website of certain brokers that do provide this feature. It is not difficult to get this information because no requotes are usually a featured feature because it effectively attracts the interest of traders. But actually requotes are unlikely to happen, because when the market is volatile and the server is filled with too many orders, requotes will still happen. So, are forex brokers who have no requote feature claims lying? The answer is not necessarily, because it is possible that the forex broker has software that can avoid forex requotes. However, usually this will have an impact on the longer order execution time. So there are consequences of the no requote feature that need to be considered.

2. Don't trade when there is a news release that has a big impact

Avoid entering the market when important fundamental news is about to be released, unless you are a news trader who is adept at taking into account the risk of requotes. Not only is it avoided by traders who are worried about the impact of forex requotes, trading during important news releases is also avoided by many technical traders because prices usually move quickly with high volatility, so the risk of loss is also as great as the potential profit. The direction of movement is also difficult to predict technically, because market sentiment at that time was more influenced by fundamental factors. Make sure you pay attention to the economic calendar for release schedules, announcements, and fundamental news that need to be avoided. 

3. Determining the stop level

Did you know that in addition to open orders, exiting positions can also cause requotes? The impact on trading earnings is quite significant! Considering that close order requests can be executed at levels that are not in line with the target. To avoid this, do not specify the stop loss and profit after the open order. If it is determined before opening an order, the trading position will be safe from the danger of requotes that arise when closing the order.

4. Activate the maximum deviation function 

If your trading platform has a maximum deviation feature, then use this feature to avoid forex requotes. Maximum deviation is the maximum deviation limit that traders can determine for themselves. This means that you can set the maximum price deviation limit that applies to each trading position. If you fill a maximum deviation of 3 pips, then the price will still be executed as long as the requote is only equal to or less than 3 pips. Outside of the deviation limit, the ask price will not be executed. An open sell position at 1.4175, for example, will not receive forex requotes at a level lower than 1.4172.

5. Choosing a technologically advanced forex broker

What is a forex broker that has advanced technology like? A forex broker with advanced technology is a forex broker with ECN (Electronic Communication Network) technology. ECN is an electronic system designed to bridge forex traders to jump directly into the liquidity market. This means that the broker 'throws' all customer orders into the market directly. The difference is in market transparency, so that it can minimize the occurrence of requotes. Brokers with ECN technology can provide traders with an 'entry point' to access the market directly or commonly referred to as direct market access (DMA).

Want to trade with maximum profits but zero trading fees?

Unlike other forex brokers, GIC through the GICTrade platform provides a solution for traders who do not want to be charged with high trading fees. GICTrade is a peer-to-peer trading platform that brings together traders and market makers. You as a prospective customer can certainly choose between the two, namely becoming a trader or a market marker.  GICTrade's role as a transaction venue provider can minimize costs and help maximize profits for traders and market makers as well as create a fair transaction atmosphere and results. Traders will benefit from the absence of commission fees and low swap fees and spreads due to the presence of market makers as liquidity providers. Regarding legality, there is no need to worry. All transactions from GIC customers (traders or market makers) are reported to the Jakarta Futures Exchange (BBJ) and the Indonesian Futures Clearing House (KBI) based on transactions that occur on segregated accounts of licensed brokerage partners in Indonesia, namely Trijaya Pratama Futures and Capital Megah Mandiri. The advantage of GICTrade is that it is transparent, meaning that all transactions will be recorded transparently so that the platform is safe and fair and can minimize slippage and requotes. From now on, don't panic anymore when there is a forex requote with a price that is suddenly executed far from the asking price. Follow the tips above to keep your profits consistent. Happy trading!