Why Do Forex Trades Need Virtual Private Servers (VPS)

While investigating new strategies and techniques is never a bad idea, it is also important to consider the tools that you use to carry out your trades. VPS (virtual private server) today is widely used for trading in the financial market and is especially useful for traders who prefer automated trading using advisors or trading signal providers. In this article, we will talk more about the VPS and take a deeper look at the benefits of using VPS.

What Is A Virtual Private Server

A Forex VPS, also known as a virtual machine, is a remote server a trader can use to host automated Forex strategies. A VPS uses virtualization technology to “split” one physical hardware server into multiple virtual servers. The word ‘private’ implies that each Virtual server has its own resources so you wont have to share RAM and CPU with other users.

Additionally, since each VPS is a different layer on the physical server it can have its own Operating System and host data in non-shared hard disk sectors which enhance the VPS‘ performance & the user’s data security.

When a forex VPS hosting service is set up, the trader gets allocated an IP address, along with a username and password, to gain access to the system. A programme, called “Remote Desktop Connection,” is provided for a Windows-based operating system, which can simply be accessed using the start menu button. After the login details are entered, traders can access a “virtual desktop,” where they can download the MT4 platform or simply upload Expert Advisors (EAs) to the VPS.

Traders gain huge control over the PC, VPS connection with EAs and the broker‘s MT4 server, none of which requires 24/7 uptime at the trader’s end. The installed EAs will send orders to the MT4 servers autonomously, which means that network uptimes are maintained through the day, regardless of whether the traders computer is on or linked to an internet connection.

Advantages of VPS for Traders

Some of the leading benefits of using VPS in forex include the following:

1. Enhanced Security

Conducting trades on the same network and operating system that you use for personal business is less than optimal. Even when local networks are password protected, they remain highly vulnerable to outside attacks. A VPS adds another major layer of security, making it far more difficult for hackers to gain access or for viruses to get through.

2. Faster Execution

By using a VPS in the same location as your Forex broker, you are able to open and close trades much faster than would otherwise be possible. The result is that you experience less of a delay and less slippage. As we all know, slippage costs money, sometimes a lot of it, so this is a great way to reduce your losses and unpredictability.

3. Trade From Anywhere

There are still plenty out there who exclusively trade through a desktop PC. While there are certainly alternative methods around that allow for increased portability. If you aren‘t ready to ditch your desktop just yet, with a forex VPS, you don’t have to.

A forex VPS allows you to expand your forex trading efforts, connecting to your preferred trading platform from anywhere in the world, as long as you have an internet connection.

4. Better Reliability

When a trader‘s real money is at stake, it’s a serious matter if problems like power failure, internet failure, slow computers, or even a complete computer failure affect a traders ability to execute trades exactly when he or she needs to.

A VPS is a great way for a trader to reduce these risks, because the VPS is hosted in secure data centres, which provide security systems to prevent hacking, as well as backup servers and backup power generation. It also means all the setup and processing power of the forex trading platform is done on the faster, more reliable VPS, and a trader only needs to access this server using any remote viewing software.

5. Affordable

VPS hosting plans span a wide array of prices, so it is easy to find something to suit just about any budget. Think of it as an inexpensive way to gain access to superior platforms and software while boosting your Forex trading ability.

How to Choose VPS Service

When choosing a VPS, you need to pay attention to the following parameters:

Performance:

Forex VPS service providers are able to split their resources among a number of users, due to virtualisation technology. But the high workloads of certain traders can impact the performance of the system for others. So, ensure that you choose a system that guarantees at least 99.9% uptime. The service provider should have the necessary resources to shift traders to another compartment, when a particular one is experiencing downtime.

Unlimited latency:

When purchasing or subscribing to a VPS hosting package, be sure to confirm that the service provider allows unlimited access to the different MT4 instances as well as other platforms. If a VPS limits your access to different instances and platforms, you will have trouble and may end up not being on good terms with brokers and the different institutions connected to Forex trading. In that light, always ensure that you go for a Forex VPS option that gives you unlimited latency.

Server location:

It is recommended that the Forex brokers trading server is located in close proximity to the Data Center (where the server equipment is located). This allows minimum response time of the server and ultra-fast execution of client transactions.

Customer support:

Since the Forex market is always open, you will want to choose a VPS service provider that offers their customers satisfactory customer support to reduce the risk of investment. This is especially critical when you cannot afford to have interruptions that can put your investment at risk. Given that even the best services present some issues from time to time, you want to be sure that there will be someone to help when such issues arise.