A VPS or Virtual Private Server is a server that is hosted on the same computer as other VPS but is run independently. For your Forex trading needs, computers are generally set up in New York City, London, and Tokyo. Each VPS will likely come with its own power supply, dedicated memory, RAM and transfer allowance per month. It can be used as if you were trading directly from where the server is located, providing you with speed, security, and reliability.
Here are a few reasons, as to why a VPS can help you trade Forex.
As a VPS is hosted very close to Forex hotspots, it minimizes the time that is taken to execute a trade, a.k.a. latency. By minimizing latency, you can complete trades more accurately and avoid more slippage that may occur. It is a very useful feature for all traders, but it is especially important for traders that use Expert Advisors or Trading Robots. Allowing the EAs to execute trades almost immediately will ensure that the strategy will perform better and likely make more money. VPS hosts also have high-quality internet connections, backed-up by multiple connections should anything go wrong.
For anyone using an EA, it can be risky to have to rely on your home computer remaining on 24/7. With a power/internet outage or simply a malfunction of your computer, a crash could result in you losing money. With a VPS, the server can stay online and active 24/7. This allows you to operate your strategy around the clock and ensures a reliable service. You dont need to worry about it shutting down, or about leaving your home computer on all night.
A VPS also lets you trade from anywhere. As the trading platform is stored on the VPS, there are no downloads required to access your trading account from anywhere in the world. This allows you to keep an eye on your trades without having to worry about the reliability of your internet connection or computer.
The safety of your Forex account is a priority with VPS hosting companies. A good VPS host will check servers regularly to make sure there are no security breaches, as well as maintaining a strong anti-virus software. Most companies will ensure a 99.9% upkeep time and have backup servers in place, should anything go wrong. This allows you to feel comfortable leaving your EAs to work, and that your trading account will be working efficiently.
VPS hosts will also offer upgrades to their servers as they become available. These will help to improve your servers performance and provide you with features designed to augment your experience. However, if you are perfectly happy with your VPS these upgrades will not be applied to your server unless you request them. The customizability allows you to make your Forex experience your own.
Overall a VPS is certainly something to be looked at by any serious trader. While not for everyone, the advantages that it provides to a regular trader can be very useful. It also depends on the type of trader that you are. If you are looking at very short-term trades in high volume, it may be more suited to you rather than someone holding for longer periods of time. VPS do come at a monthly cost, so this needs to be factored into your decision. They are ideal for running an EA and will help you to secure fast and reliable trades. There are many providers of VPS services, I recommend taking a look around and finding one in a location that suits you, and one that provides the service that you are looking for.