How Forex Brokers Trick You: Requotes

A forex requote occurs when there is a price difference between the price you decided to enter or exit a trade by clicking on the buy/sell and the actual price on the market by the time your order reaches your forex broker. Forex requotes is a common phenomenon when the markets are moving fast and/or there is low liquidity. A currency pair with more liquidity can be easily traded without significant impact on it’s pricing because of the high volume of of trading activity. Forex requotes is also referred to as slippage. Brokers use slippage for their own advantage and offer you to buy a currency pair at a slightly higher (or sell at a slightly lower) price than they could have. The difference is the profit they end up getting. Forex requotes are more common with bucketshops. That being said, forex requotes cannot be avoided completely. Even if you are trading with the best ECN/STP Forex brokers, you would at some point have to deal with forex requotes. However, forex requotes is much less infrequent with ECN/STP brokers than market markers. Some platforms exasperate the process as trying to close and bank the trade requires four more clicks and another 3 second life times Whilst others delay the quote again and the cycle continues. All this requote malarkey kind of makes a mockery of the 'we make our money on the spread or on the commission of each trade.
Forex brokers are free to offer any price to their clients. Most of the brokers get price quotes from the interbank market with a 1 pip or even lower spread. To this pip spread they add 2 or 3 or even more pips as the price quote to their clients.
These 3 or 4 pips are the risk free profits that the brokers make for each round trip trade. You see why fx brokers are giving you free platforms and trading signals, only to make you start trading as soon as possible. Your broker will make more risk free money, the more you trade!
There is a practice used by forex brokers called Price Shading. For example, if the broker is convinced that Euro is on an uptrend and its price is going to rise, the broker will shade his price quote slightly higher to take advantage of the likely increase in Euro price. Bad forex brokers have made a lot of money from this trick.
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