A forex VPS (virtual private server) is like a permanent link that connects your trading terminal to the wider trading network.

For example, when you use MT4 at home on your computer, you’re plugged into the standard trading network where your trades get executed. But what happens if there’s a power outage that leads to the loss of your internet connection? Or a system glitch? Or did your computer freeze or simply stop working?

Instantly you lose the ability to open, close, or amend your trades, which can have big implications in a fast-moving market.

Forex VPS hosting keeps you connected and lets you keep trading, giving you safety and security against unforeseen failures in the system. It is not only an automation tool but can also be seen as a component of a trader´s risk management strategy.

How does forex VPS work?

Breaking it down in simple terms, forex VPS really is just a cloud-based desktop PC.

A VPS can host a version of an OS (operating system) that can be remotely controlled from basically any other device that is within reach. This is somewhat similar to web hosting servers, except that with the added capability of directly hosting your desktop computer while still being able to function independently as if it were on its own server (think renting out a room in someone’s house).

Although several VPS are created on one computer, they each have their own set amount of CPU power and space so you’re guaranteed what you need and signed up for every month.

The forex VPS works as a SaaS, where you pay a monthly subscription cost for access to a VPS hosting service from a provider. Continue reading to discover some leading third-party VPS providers.

Why should I use a forex VPS?

The benefits of a Virtual Private Server (VPS) for automated trading include continuous internet connection and faster execution speed. VPS services are powerful, offering CPU speeds up to 20% higher than comparable servers because they have more RAM available to run processes in parallel while minimising usage spikes from other clients on the same server.

Some other important features of forex VPS hosting include:

Backups

Forex VPS servers constantly create backups of your entire trading configuration, including the operating system and trading software. No matter what issues you might have with your computer or devices, a VPS acts as a kind of safety net to protect you against issues that arise if a connection is unexpectedly broken. It means you can carry on trading without missing out on opportunities.
Improved latency and reduced slippage

Latency in trading basically describes how fast your trade gets executed. In other words, it’s the time between the moment you hit the ‘OK’ button to confirm a trade and the moment your trade is received in the marketplace.

In trading, latency is measured in milliseconds but in such a fast-moving market milliseconds can matter a lot. So, the lower the latency the better. One way to reduce latency is by having computer servers physically closer to exchanges, which is what a VPS connection gives you.

With a fast connection, you’re less prone to slippage, which is the difference in the actual price between the moment you hit the button to confirm the trade and the moment the trade is received and completed.

The online world may seem instant, but everything takes some time. A major advantage of using a VPS is that it can be a low-cost way to improve your latency and give you more reliable pricing.
Simplicity, security, and efficiency

When you’re trading forex online it helps to think of it as a business that you’re running. You’re essentially investing money to try and make more money. So why wouldn’t you choose to implement the best technology to give yourself the best chance of being more profitable?

A VPS is a simple and cost-effective way of helping you safeguard your system and reduce your level of risk so you can concentrate on building a path to being a successful trader.

Essential components in Mechanical Forex systems

There are two common types of trading systems:

• Discretionary trading: Discretionary trading is an “old school” style of trading where you do things manually, including evaluating your buy and sell decisions or manually entering stop loss and take profit alerts. While a lot of traders still use some aspect of discretionary trading, the trend is increasingly moving towards the mechanical trading model.
• Mechanical trading: Mechanical trading systems are highly automated. You use EAs to do the bulk of the work for you, so retail traders don’t need to be in front of a screen monitoring or placing trades. In this model, a VPS is an essential part of your system as it gives you the assurance that your automated trades will stay connected to the network and continue to function.

What to consider when choosing a forex VPS?

Here are some key aspects to consider when choosing a forex VPS hosting service:

Minimal latency: Less latency will lead to faster execution and improve the chances of an order being filled as soon as possible.

Safety: The best VPS providers will ensure your data security and network security – including setting up a server firewall – and all for a reasonable price.
Flexibility: Traders might use different operating systems, so it is important to check if the VPS provider of your choice supports it. The provider should also have data centers in multiple locations worldwide, so you can pick one in close proximity.
Support: A good VPS provider will have adequate technical support – which includes promptly replying to support requests and is able to resolve technical difficulties, complimentary backups, server monitoring, and integration with third-party tools.

What is the best forex VPS hosting service to use?

ForexVPS is well-known for being the top VPS for speculative traders. We’ve got a team of 70+ people around the world helping traders optimise their trading software via our VPS.

ForexVPS launched over a decade ago and since then we’ve sold millions of VPS to traders and partnered with the biggest brokers in the world to provide their traders with solutions.

The Ultimate Dedicated Forex Server

• Power x64 trading platforms at the same time
• Extreme Intel chips to crunch complex trading algorithms
• Up to 100GB SSD DISK. It will handle anything
• Harness 100% of the resources. Nothing is shared
• Lightning-fast 1ms trade execution times. Be the first to market

Bonus offer:

ForexVPS.net offers an extra 60 GB SSD DISK of memory on all plans – plus a 15% discount -. Just enter the coupon code “TMSIGNALS15” during sign-up.