Perhaps you’re new to the Forex trading scene and heard one of your expert buddies suggest using VPS for conducting trades? Maybe you’re tired of interrupted connections and clunky performance on your good old PC and need a better solution?
So, what exactly is VPS? How does it benefit your Forex trading?
So many questions, and we have all the answers.
In this article, you’ll learn all about virtual private servers, how they work for Forex, and why most traders depend on VPS solutions to boost their trading experience.
What Is Forex?
Foreign exchange (FX) is an over-the-counter market where corporations, financial institutions, and individuals trade numerous international currencies and cryptocurrencies to profit from differences and volatility in exchange prices.
Each currency, stocks, for example, is represented by a three-letter code. For example, the US dollar will be displayed as USD, British pounds as GBP, and Euros as EUR.
Unlike the stock market, Forex is open 24 hours a day and doesn’t require a physical location such as the New York Stock Exchange (NYSE).
Previously, only large corporations and financial institutions were involved in forex trading. But even individuals with little experience in market algorithms can now participate, thanks to the technological evolution and the availability of specialized tools.
Forex robots, for example, are computer programs that can automatically manage entire financial portfolios. They utilize a proprietary algorithm to make the best investing decisions on your behalf. The best thing is, if you’re a skilled trader, you can easily configure your own forex robot.
Expert Advisors (EA) is another essential tool, aimed for beginners with no trading experience. It employs advanced algorithms to assist you in determining which currencies are best to invest in. Everything is already built-in, including technical analysis functionalities.
You’ll need a computer to begin trading, regardless of which tool you use. Even though your home PC may appear to be the obvious choice, many traders prefer to use a fast and secure Forex VPS.
Why Do You Need VPS for Forex Trading?
A virtual private server (VPS) is a hybrid solution that combines the greatest features of both shared and dedicated servers.
This type of hosting utilizes virtualization technology to split a physical server into multiple virtual instances to replicate the experience of having a dedicated machine.
VPS is a popular solution among Forex traders, as opposed to trading on mobile devices, which is often not allowed on many platforms. A lot of brokers now provide virtual private hosting plans to their investors, allowing them to benefit from these powerful servers as well.
Let’s go over some of the key advantages of Forex VPS
In the world of Forex trading, speed is crucial for keeping pace with the fluctuating market. Latency and slippage are deal breakers.
Luckily, FX VPS servers are more advanced and robust than your average PC.
With the right virtual private provider, you’ll have a faster internet connection than your local broadband service and easily boost execution times. A good idea to keep in mind when choosing your VPS is to pick a data center location that’s close to your broker’s trading server.
*Privacy and Security
If multiple traders or users utilize your computer, this is a security red flag you should not overlook. VPS solutions provide you with an isolated server environment to safely execute all kinds of trades.
They also offer enhanced security features, such as spam filters and web application firewalls (WAF). You can even install your preferred security software to reinforce your server space.
If you choose to go with a managed VPS service, the company will take care of your server security and monitor its performance. Some hosting providers even offer remote backup of your data.
As a result, you’ll be able to safeguard your data from inadvertent cyber threats (e.g., DDoS attacks) or prying eyes, especially if you use your PC for purposes other than Forex trading.
Another attractive benefit of using Forex VPS is the rich set of resources, dedicated entirely to your trading needs.
You have full control over your resources (CPU, RAM, and storage space) and can scale up and down whenever you want. This is particularly handy for MT4 counselors and robots.
It’s also very useful to simultaneously employ the services of multiple brokers. In that aspect, a VPS is a great option to keep different trading platforms up and running.
You won’t be limited to using certain software. With a VPS, you have the freedom to install your favorite operating system and applications.
If you have a mobile device (e.g., laptop, smartphone, or tablet), the VPS platform will grant you remote access to your trades anywhere in the world. You’ll be no longer bound by the physical location of your computer to keep track of your deals as they go through.
*Value for Money
While dedicated servers can cost a small fortune, VPS hosting is far less expensive. There are a variety of plans to choose from, tailored to your requirements.
Even though there are multiple VPS clients on a single server, they are all independent of one another, giving you complete control over your environment at a significantly lower cost.
Naturally, you must avoid any technical issues that would impede your trading. This is why it’s essential to select a Forex VPS provider with 24/7 support via multiple channels, especially live chat.
At an additional cost, many VPS hosting services can offer premium support or a dedicated expert to look after your server.
*Importance of VPS Stability for Forex
As noted previously, the foreign exchange market is open around the clock. Having a continuous stable connection is deemed crucial in order to stay up to date with all market changes and be able to make strategic trading decisions on the spot.
For an FX trader, any network outage can result in significant monetary losses. To tackle that, a dependable virtual private server can provide the performance consistency needed to safely manage your investments. Thanks to the trade automation, your VPS-hosted Forex trades will continue to run even if the power goes out.
When it comes to web hosting, network uptime is the total amount of time your website (or Forex trading app) is up and running during a given timeframe (day, week, month, or year). It is displayed as a percentage. The higher the number – the better.
Reputable hosting companies offer an uptime guarantee or even a service-level agreement (SLA). The vendors understand that even the smallest difference, a millisecond of downtime. can have a big impact on a crucial trading decision. An uptime of 99.99% or higher is considered the norm here.
Considering the tremendous volatility of the foreign exchange market, you must be available at all times, track developments, and incorporate them into your trading actions. Traders are constantly searching for the best environment and the right tools to do their job more effectively.
Using a VPS for automated trading has unique benefits. This includes constant availability, fast execution speed, tight security, and scalable resources. Some virtual private services are exceptionally powerful, with much faster CPU and RAM performance.
A VPS would always open up new opportunities for you, so what are you waiting for?