and Everest Markets are?? I can find them offering zulutrade as well?
everest market are new for me, i havent trade it, i just updated my newsite
Currently, I see Forex.com, FXCM, and Oanda in the âSponsorsâ box.
I think they are definitely the most reputable and reliable brokers with which beginners donât have any issue to worry. I also want to add one more broker: Dukascopy, one of the best ever.
FxPro, FXCM, Forex.com and I also recommend HotForex as a good broker here. You can see a lot of babypips members trade with this broker.
When I trade the Forex spot market I use Alpari. They have been pretty good overall over the last 5 years Iâve been with them.
They have the same downfalls all other FX brokers and I canât deposit through their new online portal but everything else is pretty professionalâŚ
Hi,
Yes, Everest Markets is kinda new. Thatâs why they provide excellent client service in order to compete with competitors.
I also have a HotForex account which I have nothing to complain about. HotForex is ranked very high in most forex broker reviews.
HotForex is ranked very high in most forex broker reviews.
Sorry but I have to disagree with this. Which review site is this if I may ask? 
Obviously, one that supports the broker.
we all know the truth of course. :24:
I think for those that are still considering should switch to a more serious broker and services - like aaafx, fore example!
On person say:
Choose brokers which are regulated by well recognized regulators (NFA, FSA, ASIC, FINMA) and stay away from brokers registered and regulated by exotic island countries (including Cyprus, Malta, Seychelles, Mauritius, etc) and definitely stay away from Baltic States brokers and Russia. This applies to no matter how long they claim to be in business because you will have little chance of resolving your complaints and money.
Also, be very careful of those brokers claiming to be registered and regulated by the New Zealand authorities because you will only be protected if you are a New Zealand citizen.
Another say:
There is no 100% safety in forex. A broker cannot offer you 100% safety. You have to understand the risk of fore trading, choose a good broker and be good at what you do.
I agree with all of the above! just would like to add - Mifid brokers as well.
i think the broker can guarantee you safety, forex markets , should you trade, are the volatile (or the unstable ones)
Is your Forex Broker a SCAM Broker?
If you are a regular poster or visitor to an online Forex trading forum, you will most certainly see this question asked three times out of 10: âis my broker a scam brokerâ?
Many of these online forums are littered with one tale of woe or another about Forex brokers. But are all bad experiences in Forex attributable to Forex brokers? When you consider that 96% of all individual Forex traders fail at Forex trading, surely this cannot all be attributed to some Forex broker scam activity. We, therefore, have to distinguish between activities due to scam brokers, and bad trading practices by traders.
The fact is that many retail Forex traders enter the market unprepared, without realizing that Forex trading is a bit like going to school and taking exams, with a reward of promotion to a higher grade and eventually a certificate or degree as the case may be. In Forex, the trader has to study the art of trading, and an actual Forex trade is the exam that measures the traderâs proficiency, with the reward of a profit pay-out from a successful trade. What we are generally seeing, especially in developing countries where the technology for Forex trading took a while to catch up with the rest of the world is that traders take only a few dayâs training, or attend âone-day intensiveâ seminars on a Saturday (when the market is not running), then rush off on Monday with thousands of dollars to open Forex accounts to start trading. In such scenarios, high failure rates can only be the outcome. Many of these cases then go to online forums to report what they feel are the reasons behind their failures. You hear things like âit was as if the market was waiting for me to trade before going against meâ. All this is bad trading in action and cannot be attributed to fraud activity by a Forex broker.
However, we need to say that scam brokers exist and their activities are very real. When you put money together with the greed mentality that is locked up in a secret reserve of the human soul, waiting to be tempted out of hiding, it is indeed impossible for brokerage scams not to occur. There are many ways the Bad Brokers of this world try and take your money. According to incomplete statistics, the current market has more than 30% of foreign exchange brokers illegal brokers. There are a lot of different issues that can cause alarm when dealing with currencies, which is why itâs important to watch out for broker tricks and instead try to invest with a platform that gives you more control. Throughout this book you will see that how your broker scam to you. This book also helps you to distinguish swindling brokers from honest ones. Letâs Start !
Forex brokersâ tricks: Innocent ways to outsmart a client.
Every few weeks a new Forex broker joins the market offering online currency trading. Some brokers do business in straight forward, honest way, while others try to âinventâ additional rules to maximize company gains.
Think this way, a broker doesnât come into the market with the self purpose to help you earn profits in Forex. Forex brokers, first of all, come to make money for themselves. I wonât dive into the details on how brokers make money using common industry standards. Iâm going to talk about the OTHER rules, invented by Forex brokers. These âotherâ rules are also fair, nothing illegal, with the exception that âother rulesâ make Forex brokers slightly more richer. Illegal brokerage practice remains illegal and is prosecuted by the law worldwide. Again, we are talking about legal methods of making extra profits (often than not, at clientsâ cost), those methods that not every trader is able to spot out without the experience.
These other rules are about:
- spread policies;
- position time limits;
- platform time zones;
- negative interest rollovers;
- affiliates commissions;
- and otherâŚ
This topic will consist of several separate publications, where weâll talk about each of these rules in details.
My friends, letâs clarify the last important thing, before we move on:
Iâm not trying to make you suspicious about brokers and their practice. I simply want you to be smart and aware of practices that exist out there whether we wish for it or not.
Iâm not trying to teach you to hate brokers or stop respecting them; after all, it is you in the end, who will decide about signing a contract with them and accepting their rules. Some brokers choose not to overload clients with tons of details about trading; it is your duty to ask a broker about the rules and terms before you sign a contract and begin trading.
Tricks of the Trade: Secrets of Forex Brokers
Every magician has his secret tricks of the trade. Naturally no magician would reveal their magic tricks for they would not earn any money with them anymore. The tricks of the trade enable any professional of any profession to have an edge over the client when it comes to knowledge, timing, and income. Such tricks of the trade also exist when it comes to Forex brokers. No matter if you want to be a Forex broker or if you are a concerned client, we will take you behind the tricks of the trade of Forex brokers.
Forex brokers are mediators on the market for the clients. They are the ones who advice their clients to buy or sell and they are also responsible for the actual buying and selling transaction. The Forex broker has many contacts on the market and can determine if a currency will rise or fall and subsequently will trade with the chosen currency.
Every Forex broker is also knowledgeable about the background of the currency. This means that every broker does a Forex market research on the probability of rise and fall depending on the following factors; political situation, economical situation, market demand and market trend. From this information, the Forex broker can determine precisely what may happen to the currency on the Forex.
Another trick of the trade of Forex brokers is that they use their knowledge to an advantage against the client. This does not mean that the broker wants to scam the client, but it simply means that the Forex broker has a market advantage because of the knowledge. This makes the Forex broker more powerful over the client, and the Forex broker can influence the clientâs decision positively or negatively and most of the time to the brokerâs advantage.
Brokers in general only get a small commission rate from the clients Forex market transactions. The commission depends on how much the client gains through the Forex trade. Depending on agreement and agency, the Forex broker can strike a deal of 5 percent to 20 percent commission.
The trick of the trade here is that the client is made to think that the Forex broker will try to earn the client as much as possible from the Forex market. This is only partly true. Let us take an example of a 10 percent commission; the broker got you $1000 from the buying and selling of currencies, then his share would be $100. Let us assume the broker waits a little longer and earns $1200 instead, so his share will be $120. A Forex broker would definitely not waste more of his time to get a measly $20 in addition. This means the Forex broker will take the first deal and will convince the client to do so as well.
Forex brokers truth: Trading platform time zones.
If you tried trading with at least two Forex brokers, you may have already noticed that every Forex broker has own time zone settings for thier trading platform?
Having data displayed in the right time zone is crucial for many aspects of Forex trading.
Daily and weekly charts can easily have different values and price ranges if a new daily candle on one trading platform appears at 00:00 GMT, on another platform 2 hours later at 00:00 GMT+2, and on the third platform 5 hours earlier at 00:00 GMT-5 (EST)
If you are using automatic pivot points, they will be calculated according to your time zone and daily candles. As a result â your support/resistance levels will be different form what other traders may have. If you are trading daily breakouts, your breakout entry points will differ from other tradersâ orders.
And finally, every single indicator can behave differently. Enough, I think.
There are many nuances of that; an exception could be maid only for intra-day trading: starting from 1 hour time frame and lower you wonât care much about time zones (except for pivot points levels, and may be few other studies).
Have you ever been into a situation where, once youâve changed a broker, your old strategy seemed to start performing worse or even failed completely?
When discussing trading systems on forums, some traders report amazing results while other traders while being 100% disciplined in trading canât achieve any similar performance⌠I wonder why⌠^^
Time zone settings on majority of Forex trading platforms cannot be changed. Some brokers use this factor to their advantage. Instead of picking for their trading severs the most common time zone(s), where the largest Forex markets operate: London (GMT) or New York (EST), brokers choose other time zones, like GMT+2, +3 etc.
I canât explain why they do it. Except, probably, for those brokers who decide that platform time zone should be the same as the location of the company. But Iâve seen unexplainable cases, when broker company is, say, in New York, and they set time zone for their platform (randomly?) at GMT+6⌠Why would you do that? Probably to make sure no strategy works well under this conditionsâŚ
I can sound overly cautious and concerned with those time zones, but it doesnât eliminate the fact that the platformâs time zone plays a significant role in oneâs trading success way to often to be completely ignored!
You can change the time zone in the Platformâs settings, so that it shows the hours you want, BUT the server time, which the platform operates on doesnât change. A new day starts and ends according to the server time anyway. When I switched over from a GMT+0 Metatrader 4 platform to another one with offset like GMT+1 or GMT+2, my decisions are affected. Sometimes, I miss an opportunity due to the different ways the candlesticks are displayed using different time offset.
The other alternative to a requote is a Platform freeze. The prices all freeze and weâre into the unknown again, thus preventing traders from either participating in profitable trading opportunities, or from closing out profitable trades. I know a case where a trader who opened a trading account with $50,000 had such problems with his broker, and was not allowed to close out a trade due to a platform freeze. Frustrated, the trader closed the platform and returned two months later, expecting to have been stopped out. To his amazement, the trade had become so profitable that his account size had swelled to $200,000. He was allowed to close the trade, but the broker has not made good on the withdrawal request. There is no better definition of scam if a broker is involved in such practices. We have heard similar experiences of being locked out or thrown out of platform as a way to add emotional stress and doubt into the traders mind. Sounds logical although extreme. Other inexperienced traders could well have assumed it was an issue their end, computer, virus or connection.
Forex brokers truth: Forex Spreads
Forex is an over the counter unregulated market. This means that there is no central agency like that in the futures markets that can function as a clearing house. This unregulated nature of the forex market means that most brokers are free to quote currency rates of their own. What many brokers do is add 1-2 pips to the interbank rate that they get. In times of volatility, you will find that the spreads might suddenly widen. Almost all brokers now tell their clients that no commission will be charged like that in the stock trading. What they donât tell you is that commission is being charged in the hidden shape of spreads. 2-3 pips bid/ask spread is your trading cost and the brokerâs profit.
What makes matters somewhat difficult for the average trader to understand is the fact that there are several different factors that go into the spread. Not only that, there are several different types of spreads utilized in Forex Trading. Fixed, fixed with extension, and variable spreads can all be utilized to invest. This means that if there is a fluctuation in the numbers, and it reaches the bare minimum of fees for the broker, you will not get any money. In some instances a loss will be posted, even though the fee will get paid for the process of trading. This can definitely be infuriating, especially when dealing with a variety of issues that may be beyond control of the trader. Itâs with this in mind that itâs important to understand each component of trades made.
This should be easy. Only an inexperienced trader takes the first recommended broker. Others do lots of comparisons before settling with a choice. One of the comparison criteria is brokersâ spreads for different currency pairs. If, for example, I know that my strategy requires trading USD/JPY and GBP/JPY, Iâll go and check all available spread options with different brokers and will be looking to pick the lowest spreads for the currencies of my choice. Same selective tactics apply when shopping for leverage, margin, lot sizes etc.
Novice traders often donât have preferred pairs as they also donât have finished and polished trading strategies, therefore they are fine with a broker who offers more or less low spreads on common pairs, like EUR/USD, for example.
For a Forex broker it is easy to lure in such traders. Some brokers would offer competitive low spreads for common currency pairs, like EUR/USD, GBP/USD, which traders tend to compare most, but for other pairs set higher than average spreads. Novice traders buy it, and brokers stay happy. Later traders realize they want to trade other pairs as wellâŚ
Another way for Forex brokers to attract a client is to advertise about lower spreads. A broker would say that their spreads are âas low as 0.7 pipsâ.
There comes another wave of âthey think they are smartâ traders, who are glad to take such a bargain. What traders donât realise while comparing the spreads it that those spreads are variable. Unless you are trading with true ECN broker, variable spreads could be quite costly. The problem with variable spreads that traders always complain about is: you seem to never get a spread youâve been lured by in the advertisement. Variable spreads will vary depending on the market volatility and liquidity. Higher volatility â higher spread, lower volatility â lower spread. At the same time: higher liquidity - lower spreads, lowers liquidity - higher spreads. Could be difficult for a beginner trader to get a grasp on it at first, I know.
Opposite to variable spreads are fixed spreads: fixed spreads are easier to trade with, they donât vary no matter what. (*Fixed may increase during news announcements. If thatâs the case, a broker will warn about it).
Additionally, variable spreads go wild during news time. Biggest suckers (sorryâŚ) come to trade with variable spreads during news releases. Ever seen a spread 40 pips wide? Yes, thatâs what you may pay one day for opening a position during news time if you trade with variable spreads. (*At times fixed spreads may surprise in the same way. Be warned.)
If you go with a broker whose spreads are variable, youâre signing a contract to take âwhatever is offered to youâ at the moment of opening a position⌠This âwhateverâ can be very different from whatâs been advertised. On the top of that youâre signing in for an additional headache of looking at spreads EVERY TIME you open a new position.
Although the spread cost itself seem to be quite a small fee comparing to the profits one plans to make, spreads add up very quickly, so quickly that for many intra-day traders it may become a determinant of profitable or unprofitable trading performance. Try to calculate how much youâll pay in the spread cost each month.
But donât run so happily now towards fixed spreads⌠Fixed spreads, you wonât believe it⌠can also widen. This warning is written on every broker website where you have fixed spreads. Every serious shakeout in the market: news, economic shifts other global events will immediately cause fixed spreads to expand, unless a broker promises to never widen a spread. It is your duty to check the spread before you enter with it.
ECN brokers provide the lowest variable spreads, which is the best deal, yet there is a commission cost to be paid on top. STP brokers can also offer variable spreads, but you have to monitor the spreads closer than ever. Market makers can offer variable spreads - here you have to be very cautions and look at spreads before you jump in each trade. Fixed spreads are common among Market makers and STP brokers, who get quotes from larger market makers: fixed spreads are usually wider than variable, but in the long run may actually be equal in the cost as they remain stable most of the time.
As an educated beginner or an experienced trader, you know a thing or two about interests and rollovers in Forex. For holding a trading position open past 17:00 pm, brokers calculate a rollover on it. You wonât see this in your account history, but what actually happens is: during a rollover a position is closed and re-opened again. Because different countries have different interest rates for their currencies, an interest differential between currency pairs occurs. This differential can be either positive or negative, which defines the outcome: interest is either earned or charged to your account.
The list of pairs that collect positive interest when bought or sold and pairs that collect negative interest is well known to experienced traders.
Among the currencies that collect positive swaps/rollover are normally:
AUD/USD when Long (bought) USD/JPY, EUR/JPY, GBP/JPY and other/JPY pairs when Long USD/CHF, GBP/CHF and other/CHF pairs when Long .You should be always able to check the swap rates table with your Forex broker. If you donât know what swaps are awaiting for you after 5pm each day, please donât tell me youâre a serious trader.
All you need to do is to buy a currency with a high interest rate against the currency with a low interest rate. Popular currencies with high interest rate are: USD (not the case with recent economic situation), GBP, AUD and NZD. Popular currencies with low interest rate are: CHF and JPY.
Some pairs may change their positive interest earning features in the long run as country governments cut or raise interest rates, but overall the base list remains the same.
Iâve seen and youâll see Forex brokers, who donât care about those interest rate rules. What would be better than making all Forex rollover interest negative? Right?
ââŚAlright, letâs leave one or two pairs with a positive rollover for curious traders, but make everything else negativeâ â a simple trick used by a broker. As a result â traders are discouraged to hold positions past 17:00pm, the rollover time. Holding positions open for many days becomes expensive. What to do then? Avoid rollover and trade more frequently, may beâŚ? Well, good choice ;), thatâs what brokers aim for in the first placeâŚ!
Every trader may easily find what currency pairs should have a positive interest.
If you buy a currency pair where the base currency has a higher interest rate than the quote currency, then youâll earn positive interest; if it is the other way around, youâll pay interest. For example, if you buy GBPJPY and the interbank interest rates in UK are higher than in Japan, then a rollover should be positive by the end of the day and your broker should pay you the interest. But, say, if the interest rates in Japan were higher than in UK, then youâll pay a rollover fee to your broker when youâre Long on GBP/JPY.
The only thing left to do is to learn what interest rates for currencies are now.
Letâs take an example:
If the interest rate for EUR now is 3.25%, and for USD the rate is 1.0%, this means that when you Buy EUR/USD you are going to earn interest (positive rollover), if you are to Sell EUR/USD youâll pay interest (negative rollover).
Example:
If to calculate the interest for holding a Buy position on EUR/USD:
when buying EUR you earn 3.25% when selling USD you pay 1.0%
Net total is 3.25% - 1.0% = 2.25% interest earned.
Simple, right?
Now, you can check the latest interest rates, define currency pairs that collect positive interest and compare results against your Forex broker rollover feesâŚ
By now, my friend, you already know that there are spreads to pay for entering a trade and there are rollovers to pay (sometimes to earn, thanks God⌠oh, wellâŚ) for holding a trade.
What you probably never thought of, or never experienced due to the lack of experience, hm, is that this Rollover thing is way much more nastier and costly than you can imagine. Where and How?
The truth is, the system of currency trading is built such way that we, retail traders, are slaves of constant fees as long as we trade: we pay the spread to enter a trade, and then if we hold it for a day, we pay a rollover on top (more of less we can treat it as another spread), and later the next day if we hold on to a trade, we pay another rollover (âspreadâ) and so on. The grim reality of all this costly trading is that long term investors (usually the smartest guys with a long term outlook at the currency trends) are actually put in the most disadvantageous position, where their fat brokers keep on charging them rollovers day after day as the trades kept open.
Want an example? Letâs laugh (or cry) together about my trades: I have a trade running for over 1.5 months now on AUDUSD. The trade sits in profit since opening, but it is a long term goal, and itâs not yet the time to close it. Everyday I pay a rollover on it (I mean, come on, Iâve paid the spread already, but itâs another everyday âspreadâ Iâm paying to my broker⌠what a rip off! ReallyâŚ) Yeah, let me boast about my profits so far: itâs $1960 in floating income and already -$532 in rollover charges, which leaves we about $1350 to cheer about.
Well, another trade is a bit better, check it out for yourself:
⌠And this will be with everyone who dares to hold a long term trade with a negative swap/rollover. Forex brokers are simply feeding on us everywhere they can! On the other hand, thatâs the rules we accepted from brokers, right? So it is silly to whine now. I should repeat, thatâs the rules we accepted! I accepted it as well 
Brokers charge and pay disproportionate swaps based on the gap between short-term interest rates associated with currencies pairs set by central banks. This gap is not fixed; if the broker spends the swap from the customer, it will charge more than needed and if the broker pays the swap, it will pay less than needed. When the gap is small, the customer pays the swap both ways; it will not matter if one is long or short on the pair.
Can you make a conclusion from this, I hope you can. If you ever to hold a long term trade, consider opening only those where youâll get a positive swap - it is better that way, trust me 
Or, there is another way around - seek for a broker with no-swap accounts. The number of such brokers is growing, basically due to increasing popularity of trading in the Muslim world, where the Sharia laws prohibit swaps (extra rewards). So, Forex brokers now have this new no-swap technology working, and you can join in regardless your religion (depends on a broker, of course).
Secrets of Forex Broker Bonus
Online forex trading attracts thousands of investors daily and almost every forex broker offers bonuses for new traders. There are different types of bonuses being awarded to online traders and therefore before you grab what appears to be the most generous forex broker bonus available, it is your responsibility to understand the difference between the vast selection of offers and promotions before deciding to accept one.
First of all, letâs figure out why forex brokers would actually offer bonuses in the first place. Just like any other business, each forex broker tries its best to attract new traders and rewards the existing members. When your cable gives you a free movie once a month, or when your cell phone company offers you a family package deal, forex brokers give away actual cash bonuses in order to tempt you to begin trading with real money and become a regular trader. Forex brokersâ bonus giveaways are usually very generous, especially on your first deposit.
The rule of thumb â âNothing comes for freeâ. Keep this in mind while reading on.
One way to understand the bonus system better is to treat is as marketing promotions offered in the form of free money as a way for online brokers to attract you to their websites and give you a taste of a real trading.
Before we get deep into the different types of bonuses, let me explain the general requirements behind free cash. âWageringâ, the term known in online gambling industry, is usually a part of forex bonus terms and conditions. It is also the one issue where disagreements may arise.
Many forex brokers offer âFirst Deposit Bonusâ or a welcome bonus. The idea behind the first deposit bonus is simple â generally, but not always, the welcome bonus comes in the form of percentage matches on deposits.
What does that mean? You create an account with a forex broker, fund your account and get free bonus. The amount of free bonus is based on your deposited sum, for example, if you deposited $100 and your forex broker gives away 50% bonus â you get free $50. Your account will instantly have $150. Before getting all excited about the idea of getting easy money before even trading, you should understand the bonus requirements. In this world nothing comes easy and free. There is always a trap. So what can be a trap with free forex bonus?
Free bonus has requirements and rules that you should always examine on your forex broker website. These requirements and rules come in a form of withdrawal restrictions. Basically, once you get the bonus you will have to execute a certain amount of trading before you can withdraw your free bonus. I strongly suggest checking bonus requirements before you get one. You can always ask your forex broker not to give you the bonus. Thanks for freedom of speech and choice!!
Here are some terms and conditions you might encounter while considering a bonus:
You must buy or sell at least 10 mini lots in real-money account for each unit of $25 bonus granted by your forex broker before you can withdraw the bonus. One mini lot stands for 10,000 currency units you choose to buy or sell. For example, a $25 trade at X400 means that you have traded 10,000 currency units (25x400=10,000).
You will not be able to withdraw the bonus until it is redeemed. It will remain in your account balance.
Abusing bonus offers is not allowed. Bonuses are given per account, person, household and/or any environment where computers are shared.
Again, before you deposit a single dollar, I cannot emphasize enough just how IMPORTANT it is to review the forex bonus deals to see which one will give you the best advantage and isnât too demanding on bonus requirements.
Once we have covered the âWHYâ, letâs move on to âWHICHâ.
There are different types of bonuses available. One of the most common one is referred to as a âWelcome Bonusâ and it is awarded to you once you make an initial deposit with a selected broker. This is the way forex broker is thanking you for becoming a member and trading forex at its platform.
To keep you coming back, brokers will gladly reward you with what is called âLoyalty Bonusesâ. Perhaps you might receive a free cash bonus monthly, or sometimes it is possible to contact the online support and request a bonus. One thing for sure, with the increase of competition between forex brokers, you can expect more bonuses and promotions offers coming your way.
Another type of forex bonus is the most likable among beginners â âNo Deposit Bonusâ. This one is the simplest and usually the smallest of all the bonuses. All you have to do to receive âNo Deposit Bonusâ is to sign up for a real player account at the broker offering this promotion and you will receive the free cash. There is no need to make a deposit in order to be awarded. Usually the bonus appears automatically in your account, but sometimes you will have to claim the bonus via email, submission form or through online support on the brokerâs website or trading platform. No need to panic here, essentially receiving non-deposit bonus is very simple.
Once again, nothing comes for free. It is possible to find some sort of limitations attached to âNon Deposit Bonusâ, so make sure you read the terms and conditions and actually understand them. If you donât, make sure to contact the broker representative for some assistance. An example of such limitations may include a requirement for a maximum amount you can withdraw using the bonus. Or you might require making a token deposit before withdrawing the winnings.
A more âinnocentâ way of getting some free cash is to invite a friend. Once you are an active trader check if your forex broker gives away free money in case you invite a friend. Usually it requires for your friend to make a deposit, then both you and your friend get free bonus. Refer a friend bonus is not calculated in percents. It is usually a fixed price varies from $50 to $500, depending on the account type.
The bottom line is that when you visit a forex broker and get interested in the bonus offers, always take your time to read the conditions of the bonus. Many misunderstandings arise from the fact that traders sometimes avoid reading the terms and then find themselves in a difficult situation. For example, when it is time to withdraw, forex broker may hold the amount equal to the bonus if the wagering requirements havenât been reached.
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 itâs 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.