What Is The Use Of VPS For Forex Traders?
As a forex trader, you are always looking to improve your system. You look for techniques, methods, and of course, tools to do your trades. One of those tools is VPS or virtual private server. With VPS, automated trading is made possible!
What is VPS?
VPS (virtual private servers) are remote servers capable of hosting an operating system of its own. The user of a VPS can access that operating system practically from any computer. If you’ve heard about web hosting servers, the system is quite similar. The servers hold all the data of a specific website allowing it to be viewed using any computer that has internet.
Web hosting servers are a bit different than VPS in that the latter hosts a copy of your computer. VPS has many uses whether for individual or business applications. For instance, you can use it to host your forex trading software, EA Forex, and get your indicators running. This way, you can continuously trade even when your computer is turned off.
Why Use VPS for Forex Trading?
Most Forex traders start by using their home computer networks to access trading platforms. That’s all and well but doing this comes with some serious disadvantages that VPS can remedy. Let’s talk about the problem if you don’t have VPS. To trade, your MT4 charts need to run all the time, but these come with a lot of problems.
Some of those issues are:
● Laptop overheating
● Computer failure
● Electricity outage
● Internet failure
● Internet outage
● Laptop/PC breakdown
Using a computer or laptop to trade isn’t as simple as letting the indicator run. If your machine is always running, obviously you need power all the time. But certain things can happen like power cuts. Data or Internet interruption is also a frequent problem that you can’t have if you are trading.
Of course, you can choose to let your computer run 24 hours every weekday, so the indicator is always running. That way, your trades won’t be deactivated. Your MT4 charts are live and when orders come, your indicator will tell you. It’s not ideal, though. The best way to solve all the issues mentioned above is with a virtual private server.
You see, VPS is a dedicated server hosting that uses virtualization technology. Using that tech, several servers are split into smaller sub-units. Each of these virtualized sub-units is independent of each other. Meaning, each one is a self-sufficient system. When you use VPS for Forex trading, you can gain a certain amount of RAM, memory, and bandwidth.
With those, you can benefit from having better software, accessibility, security, and latency. Let us elaborate on the benefits of VPS hosting in the next part of the article.
● Trade Anywhere
If you are trading using a desktop, then you are probably mostly stuck by your computer. You can try to be more mobile by using a laptop or mobile phone. But that also comes with difficulties. With VPS hosting, you can connect to the trading platform anywhere by logging into your VPS. You can do this if you have an Internet connection.
● Trade Anytime
The accessibility that VPS offers also includes being able to trade anytime. You are no longer glued to your computer to trade. Even when you are outside of a hotel without your computer, you can simply log on to your VPS. It means you can trade day or night, even when you are sleeping.
● Trade Even When Power is Out
Things like blackouts can happen unexpectedly and without warning. If you do automated trading, Forex trading is possible even when the power is out. VPS hosting for Forex comes with an automated system that performs on its own without you monitoring it. Even if you cannot go online, you can still make money through Forex trading.
● Less Slippage and Delay
Besides automated trading, VPS benefits you by executing trades faster than your desktop computer. Virtual private servers are quicker to transmit orders resulting in reduced slippage and delay. In turn, less slippage means you can lessen the money it costs. At the same time, you don’t have to deal with unpredictability so much.
● Improved Latency
VPS providers often allow users to pick from many locations on where to host their computers. This is an advantageous feature for Forex traders since it allows them to host the VPS server near their broker. As a result, they gain improved latency allowing them to trade more efficiently and quickly.
● Excellent Stability
When trading, one of the worst things that can happen is your network crashing while you are trading. Fortunately, VPS can prevent this since the network is always monitored. The best VPS hosting for forex offers 99% uptime, meaning the servers run most of the time. By having a stable connection, you won’t be missing opportunities or make bad trades anymore.
● High Scalability
Do you think you have everything you need for trading? It’s easy to think like that in the beginning. However, your technology will surely need to change in the future when trades become more complicated. Thankfully, VPS can expand and grow with you without any worries that you’ll have to repeat from the start.
● Enhanced Security
It isn’t ideal at all to use the same network and operating system to conduct trades and do your personal business. Your network may be password protected, but outside attacks can still get in. For Forex trading, you need better security, which VPS can provide. With VPS, it is a lot harder for hackers or viruses to get through and cause you problems.
● Surprising Affordability
After hearing all the benefits that VPS can do for your EA trading, you must think it’s expensive. Surprisingly, though, it isn’t that costly. That’s because you can find VPS hosting plans available at different prices. It is easy to find a plan that works for your budget, which offers an inexpensive way to boost your trading abilities.
How VPS For Forex Trading Works
Forex Trading Usual Set-Up:
You know how the usual set up is for the trader – a local computer + Internet connection = trading station (MT4). Forex trading needs you to access the trading platform with a computer connected to the Internet. You also need the Internet and a computer, so an expert advisor or EA can trade. Without the Internet, your training opportunities are limited.
VPS Forex Trading Set-Up:
Fortunately, VPS for Forex trading solves this problem. It bypasses the Internet limitation by creating a continuous connection directly through the servers. The only requirement from you is to host the EA on the VPS. With this setup, the configuration of the Forex VPS directs it to transmit trade orders and data to the MT4 server of your broker.
How do you get the best out of your Forex VPS? You can do that by choosing the servers to be hosted in the same location as the servers of the brokers. Remember VPS’s advantage of improved latency? That’s right. Just choose a location for your VPS server that is as close as possible to your broker.
Who Uses VPS Forex?
For an individual broker, it might seem expensive to use VPS. But as mentioned before, it can be affordable if you looked at the available plans. Whether you are doing it solo or not, VPS Forex trading can be good for you. It will help improve your abilities to trade and therefore, help you earn a lot of money.
Features of a VPS Software for Forex Trading
The main features of VPS software are CPU cores, bandwidth, and storage space. The amount for each feature depends on the plans arranged by the VPS providers. Each plan is different and has unique offerings designed to suit each type of user. For you to take advantage of VPS, make sure to choose the plan aligned with your goals.
What to Consider When Selecting VPS Hosting for Forex?
You have a few things to consider when looking for a VPS software for Forex trading. One thing to keep in mind – you don’t necessarily need a plan with large storage space or bandwidth. The most important consideration is to have a VPS space protected from the activities of others using the same VPS.
With Forex VPS hosting, the providers host several users on a single server. As mentioned before, it uses the technology of virtualization so that the server allocates resources. The server is divided into sub-servers. By allocating resources, VPS servers make it possible to provide all the advantages mentioned above.
Independence from Other Users
Virtualization is key, but the VPS must also promote independence among users. That is, although several users are using the same VPS, it must not affect each other. Look for a reliable VPS provider with a set up just like this, Otherwise, the activities of other traders can affect the activities of other traders and not in a good way.
It can be costly when users aren’t independent of each other while using VPS. It can cause delays, network interruptions, or downtimes. Such things mean loss of income, so you must choose your Forex VPS carefully to avoid issues in the future. Use only Forex VPS that has insulation of individual forex users.
Hyper-V Technology and MT4 Trading Terminal
Hyper-V technology is what allows users to be independent of each other in the same VPS server. It runs on OpenVZ (for Linux users) and Microsoft Windows Servers. They are the VPS configurations that guarantee you will have a stable operation. Also, it is best to choose a provider with an MT4 trading terminal, so you only need to change the location of the server.
Another thing to consider is the uptime record. When choosing a VPS hosting for Forex trading, choose one with 99.99% uptime. It means an agreement with your VPS provider that they will make sure the server is running 99.99% of the time. Consistent uptime is necessary for forex trading, so you won’t miss any trading opportunity.
Using VPS for Forex Trading
If you decide now that you’re using VPS for your trading exploits, here is a simple step-by-step procedure:
1. Buy a reliable Forex VPS plan. You’ll be given a username and password after this. It will create access between the Forex VPS and your computer.
2. Get the instructions from your VPS provider on how to install the Forex VPS.
3. Type in Remote Desktop Connection in the search bar after clicking the Windows start button. When you find the location of the file, click on it.
4. It will show a pop-up where you will enter the username and password given to you. Upon inputting them, you can connect to the VPS server.
5. You are now connected. Your provider will also give you instructions on how to connect your Expert Adviser to the remote computer. Simply follow it to start trading.
There you go. You see now how helpful a VPS hosting for Forex trading is. Try getting yours now and take advantage of all the benefits it offers today!