If there’s one important aspect of trading technology that doesn’t get as much attention as it deserves, it’s VPS trading. It’s getting easier to get machines to do the hard work, leaving you free to do the fun part like finding the trading opportunities (although you can automate that too!). This can be simply done by clicking the “X” in the top right corner of each chart.
This can have serious repercussions in a market like forex in constant motion. While inadequate network performance results in communication latency, retail traders face two other forms of latency. Lackluster server processing power leads to application latency. Meanwhile, memory latency arises when trading software needs to access data in memory — hazardous for trading systems that follow many currency pairs.
Advantages of Using a Forex VPS for Trading
If the processor’s speed is insufficient, the terminal may freeze. Do you know what “VPS” stands for and why it might be relevant to you as a Forex trader? VPS stands for “Virtual Private Server.” Usually when you hear the term, “VPS,” it’s in discussions about webhosting for sites, not in discussions about Forex trading.
Execution speed is one of the priorities, primarily if your trading system works intraday on a lower trading timeframe. For this reason, you should look for a VPS hosted in a data center close to your broker’s server location. Minimizing this distance will decrease latency and improve trade entries and results. Yet, connectivity drops at random times of day can frustrate traders, particularly if they happen at peak market times. A VPS provides stable uptime — an important feature for traders that run automated systems around the clock.
What is a Forex VPS and how to use it?
You may find that due to the competitiveness of VPS companies they may be willing to get your setup for a trial period. There is no harm in asking but if they say no, most forex VPS services only have a minimum subscription period of 30 days which should be plenty of time to see if it meets your needs. Another way you can get a forex VPS is from directly within your trading platform. Some forex platforms such as MetaTrader 5 (MT5) come with a built-in VPS. I much prefer to have a separate forex VPS as it feels less restricted. With a standalone virtual private server, you can run different trading platforms and even other software that isn’t related to forex trading.
As mentioned earlier, one of the main purposes of VPS is to provide uptime so that the internet connection can stay on and stable at all times. This is why you should pick a VPS that can provide at least 99% uptime. The VPS should have great redundancy in the system, which allows the provider to quickly shift users to another compartment if there’s downtime or unexpected issue in the initial compartment. Latency is the that occurs between the time of command and the computer’s response.
How Does Latency Affect Forex Trading?
Information is of a general nature only and does not consider your financial objectives, needs or personal circumstances. Important legal documents in relation to our products and services are available on our website. You should read and understand these documents before applying for any AxiTrader products or services and obtain independent professional advice as necessary. As well as being a trader, Milan writes daily analysis for the Axi community, using his extensive knowledge of financial markets to provide unique insights and commentary. Milan Cutkovic has over eight years of experience in trading and market analysis across forex, indices, commodities, and stocks.
- For that reason, make sure that the VPS provider is able to maintain the operation stability so this issue won’t happen.
- Aside from the above, you should read forex VPS reviews to see what other customers have to say.
- The virtual server will be especially useful for those traders who use expert advisors in their work.
- Having learned technical analysis since I first learn about forex trading, I used to believe that it’s all that matters.
- I am currently in South Australia in the Adelaide Hills and I received a message informing me that my data services are going to be interrupted for up to seven days at different times.
Forex VPS is a valuable service for forex traders who want to run their trading software and EAs 24/7 without interruption from technical problems. It provides a virtual environment for traders to conduct their trading activities and offers several benefits, such as low latency, security, and what is forex vps customization. By choosing the right VPS provider and plan, traders can improve their trading performance and achieve their financial goals. A forex VPS is a virtual private server that allows traders to access their trading platform from any computer or device with an internet connection.
Key Factors in Selecting a Forex VPS
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. For retail forex traders, VPS is the closest opportunity to balance the co-location setups of institutional traders. To maximize the use, choose a VPS server that is co-located with the forex broker’s server. But even so, the cost is still relatively low and totally worth it for the service it provides.
One way to reduce latency is by having computer servers physically closer to exchanges, which is what a VPS connection gives you. 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. It’s now very easy to access a suite of technology and trading platforms that cover all the most important tasks in the trading journey. Successful forex traders often have humble beginnings, frequently trading on aged hardware with screens of various brands and sizes. To an untrained eye, their workspace doesn’t differ much from that of a typical garage tech startup.
Forex VPS trial
Retail traders also benefiting from a host site providing the necessary stability, accuracy and speed required for trading software used today. Keep in mind that traders would still need to access the VPS if they want to upload new EAs or make other adjustments, and manage their https://www.xcritical.com/ trading accounts from the forex brokers. Luckily, none of these actions require 24/7 uptime from the trader’s PC or connection. Although the automated trading applications don’t run
on your computer or mobile device, you can manage them whenever you want,
wherever you are.
If you feel like the cost is not warranted, perhaps consider a forex broker with a free forex VPS. The main issue being that you will probably need to meet a certain minimum deposit and trading volume threshold. Have a look at the technical specs such as the processor type and speed along with the available memory. These are factors that can determine how many platforms you can effectively run without any annoying lags when switching between them and conducting your trading activities. The function of forex VPS is essentially SaaS, allowing a provider to let a user access a VPS hosting service for a fee.
Why Do You Need a Forex VPS for Trading?
This concept is prominent in forex trading because the smallest delay during the trade can fluctuate the trade prices, leading to slippage. Protecting trading capital has always been a concern for traders to reduce the possibility of data getting hacked and cut down losses. If you want secure and reliable forex trading, consider leveraging VPS. We all have heard of the phrase – ‘Making money in the stock market is all about luck,’ although it also requires a time investment. You never know when an opportunity is going to knock on your door. So, it’s better to always stay in check to grab profitable trades.
Reasons to use VPS
VPS is accessible from any smart device, thus offering a clear advantage for traders who want to monitor the markets without leaving their trading setup unattended. MetaTrader4, more commonly known as MT4 is an electronic trading platform most frequently used by retail forex traders. The software is licensed to FX brokers who in turn provide the software to their clients, the software used to see live streaming prices and charts as well as to execute trades and manage accounts.
VPS is needed because most traders do not have a device that has the capacity needed to optimize an Expert Advisor’s performance. The next step is to choose a plan that fits your budget and trading needs. The provider should offer different plans with varying specifications, such as RAM, CPU, and storage space, to allow traders to choose the plan that meets their needs. When acquiring our derivative products you have no entitlement, right or obligation to the underlying financial asset. AxiTrader is not a financial adviser and all services are provided on an execution only basis.