Updated: June 17, 2021
VPS is short for a virtual private server and it’s widely used for trading in the financial market. The VPS hosting service will be especially useful for traders who prefer automated trading using advisors or trading signal providers.
To use VPS hosting, the trader should install the trading software on the server, usually, it’s the popular MetaTrader platform.
Many brokers now offer VPS hosting services, both paid and free, depending on the trader’s capital.
So what are the main advantages of VPS for traders?
In simple terms, VPS is a computer, but it’s located not in your apartment, but in the so-called data center with independent power sources and a stable connection to the Internet.
Although we compared VPS with a regular PC for convenience, it should be noted that the VPS uses more reliable and durable server hardware, which allows it to exclude glitches. The VPS won’t freeze or slow down, which often happens when using a regular PC.
The virtual server will be especially useful for those traders who use expert advisors in their work. Automated trading requires the uninterrupted and stable operation of the trading platform, with no disconnections, reboots and shutdowns.
At the same time, the Forex VPS may also come in handy for those who prefer manual trading. One of the most reliable ways to hedge against risks is using a “Trailing Stop”, which functions only when the terminal is turned on.
As an example, let’s review 4 situations when a VPS server is simply indispensable:
- If the Internet or the power is down, the virtual server will continue its uninterrupted operation.
- If a trader uses the services of several brokers simultaneously, it may be quite problematic to keep several trading platforms active. This problem can be easily solved if you’re using VPS.
- If the computer is being used by more than one trader, but also by other persons, then this can inadvertently harm or interfere with trading. No one can access VPS except you, which allows certain security.
- If you need to get access to the trading platform immediately, but you don’t have your laptop at hand right now, you can use your smartphone to connect to the server.
Useful tips on how to choose VPS service
When choosing a VPS, you need to pay attention to the following parameters:
Operating system. It is important to note that many trading platforms are designed for Windows. If you’re using alternative operating systems, you will need to install additional software to adjust your VPS or set additional parameters.
RAM size. The RAM size must be sufficient for the operation of all running terminals and the operating system itself.
Processor speed. This parameter also affects the operation of your trading platform. If the processor’s speed is insufficient, the terminal may freeze.
- Server location. It is recommended that the Forex broker’s 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.
- Free trial period. Currently, there are almost no VPS with free trial periods. To test the service, usually, some type of prepayment is required. At the same time, if during the testing period you realize that the server does not suit you, you can claim your money back and refuse the services.
- No need to choose cheap VPS. Unreliable providers or weak configurations can cause the EA to malfunction, and this can negatively affect your trading results and cause serious losses. Therefore, you should choose the most reliable VPS with good reviews and only then compare hosting prices and monthly rates.