If you’re asking yourself, “do I need a Forex VPS?” then I’m guessing you’re relatively new to the trading world and someone you trust has suggested you need it. So… should you get a Forex VPS?
The answer depends on what sort of trading you do. In case you wish to buy and hold financial assets, then quite frankly, a VPS is not a must-have tool. However, if are going to frequently get in and out of positions, then… you certainly need to find a good VPS hosting provider.
For those who are not familiar with the term, VPS stands for Virtual Private Server, which is really just a fancy way of saying a cloud-based desktop PC. Imagine a PC with the same familiar Windows desktop you’re accustomed to, located in a data center elsewhere in the world. To access this PC you would log into it using your local machine’s remote desktop option (type “remote desktop” into your start menu to find the gateway).
The Advantages of Using VPS in Forex Trading
Assuming you have decided to use a forex VPS hosting to get the best of your forex trading account, you first need to understand how it might have an impact on the way you access the market and how you going to trade.Generally, by many opinions, Forex VPS hosting is an essential service for forex trading needs, largely because it creates a safer (and much faster) trading environment. Also, you should also bear in mind that Forex VPS hosting providers is a third party service and is not offered by forex brokers. Hence, this means that once you open an account with a forex trading VPS, you are required to integrate the server into your trading platform.
With that in mind, below you’ll find some of the main advantages of trading forex using a Forex VPS.
In order of importance:
- A Forex VPS hosting ensures your MT4 trading platform stays online at all times. It reduces the risk of loss in foreign exchange trading because of market slippages, power outages, or internet disconnections. Thus, you need to look for a forex VPS provider that guarantees 100% uptime.
- Faster trade execution. By using a VPS system in the same location as your forex broker, you’re able to open and close trades much faster than would otherwise be possible.
- Assistance setting up your automated software. Some of the best forex VPS companies will help you install indicators or EA’s if you get stuck.
These benefits only apply if you’re trading using forex robots or MT4 Expert Advisor (EA).
There is no advantage to clicking buy/sell inside your virtual private server. Consider the time it takes to click your mouse, then the signal to be sent from your PC to your VPS at the datacentre and then to the market will be marginally slower than if you’d opened the order directly on your local PC.
Here’s a pic of where VPS’s (and supervillains) live.
The only time a virtual private server is useful is when you are relying on the automated software to trade, or manage your trades on your behalf.
How to Find the Best VPS for Forex Trading?
If you have plans to become an active day trader, you need to ensure you get the best VPS for forex trading. Nowadays, many forex traders use VPS hosting so they can remove the concern of losing funds due to unexpected events. To choose that one Forex VPS provider that will make your trading environment much safer and faster, here are some factors you need to take into account and questions to ask the potential forex VPS provider:
- The number of servers (data centers) around the world
- The trading latency at your chosen forex broker
- Operating systems – Whether the forex VPS service is available on Windows VPS and MacOS
- DDOS protection
- Dedicated server
- VPS Setup time
- Forex VPS cost
- Dedicated IP address
- 24/7 customer support
The Bottom Line
Clearly, there are many forex VPS providers out there so the task of choosing the right one might be challenging. But before going ahead with your Virtual Private Server (VPS) provider, make sure you select one in a location that’s is closest to your broker in order to get fast market execution when trading forex. To find your ideal location you can use the latency search tool here. FYI – “latency” is just a fancy word for the distance between the broker and data centres.
At last, make sure your forex broker is listed and select the location with the lowest latency, preferably below 5ms (milliseconds).
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