Forex VPS is a term that you might have come across if you have been trading for a while. But you might be wondering what forex VPS means.
If you do not know what vps in forex means, don’t worry as this guide will help you to understand and also implement forex VPS alongside your trading strategy. Also learn the benefits of using VPS in your forex trading strategy which will help you to trade more efficiently.
What does VPS mean in forex?
VPS stands for virtual private server. This is a technical term that is strongly rooted in the world of technology. Generally speaking, VPS is often used in web hosting and other similar niches.
A forex virtual private server is merely an extension of the regular VPS service. By using a virtual private server, traders are able to tweak their trading by running their trading platforms 24 hours a day.
A forex virtual private server is most beneficial for traders who use automated trading strategies and which require the trading terminal to be up and running all the time.
Let us now take a look at the benefits of using a forex VPS service and the options that are available when it comes to the different virtual private service providers. If you have Googled for forex VPS service, you might discover that there are way too many service providers available in the market today.
This is both good and bad. On the good side, more number of service providers means you get competitive pricing. On the other hand, it also leaves you confused as to wondering which of the many different forex VPS providers is good.
What are the benefits of using VPS for forex trading?
If you are looking for a forex VPS trading service, then chances are that you already know why you need one. On the other hand, there are equally same amount of traders who have absolutely no idea what a forex VPS service can do for them.
Let’s now take a look at the benefits of using a VPS for forex trading.
Use a forex VPS to trade from anywhere in the world
You might not be surprised to know that many traders generally trade from their desktop or laptop computers at home. This is usually done especially by beginner forex traders or by those who prefer to make use of a manual forex trading strategy.
After a forex trader has done their due diligence on the trading strategy such as backtesting forex strategies, the next step is obviously to look for an automated trading strategy.
Once a trader has discovered that they can automate their trading systems, this is where the forex VPS kicks in.
Using an automated forex trading strategy, you may be required to keep your empty for trading terminal running 24 hours a day. This means that if in your household you have access to just one laptop or one desktop, then chances are that the trading platform can be accidentally closed.
To avoid this, a forex VPS or a forex virtual private server can be very beneficial. It is a dedicated server that you can use purely for running your automated trading strategies.
You no longer need a windows PC
In the world of trading, you may notice that most of the trading platforms are built for the Windows operating system. Although the Mac and other Linux operating systems look fancy, these operating systems do not quite support the full functionality of automated trading.
There are methods to overcome this such as using virtualization software that allows you to run a windows application on your Mac or Linux workstations.
But using this can be challenging even for those who are tech savvy. As a forex trader, your job is to trade the markets and to understand how the financial markets work. Once you start getting into the technical aspects of your trading platform setup, things can get overwhelming quite quickly.
A virtual private server for forex can help you overcome this. All you need to do is simply have a subscription to a forex VPS service provider, installed your trading platform and upload your expert advisors and you are done.
You can even access this virtual server remotely from your windows, Mac or Linux operating systems.
Service efficiency and resource utilization in Forex VPS
Purchase a forex VPS service, you are merely renting out virtual server space remotely. This means that this virtual server is purely dedicated to hosting your empty for trading platform. The virtual server is connected to the Internet and allows you to execute your trading orders.
A forex VPS service provider allows you to access your virtual space without any disruptions. As part of their virtual private hosting, the VPS service provider offers you a reliable private server.
What this means for you as a forex trader is that once you are set up, you can leave your trading platform on and allow for your automated forex trading system to do its job.
The importance of having a server close to your forex broker’s data center
You may not realize this as a trader but having a server that is closely located to your forex brokers data center can greatly help you in your trading. You might have heard about the concept called slippage.
Slippage is merely the difference between the price at which you wanted to place an order and the price that the market is in right now.
Slippage in forex trading occurs when there is a significant lag between the order flow. It is the time difference between placing your order and the order execution.
In forex VPS terminology, this is known as latency.
As a trader, you might have faced the issues of re-quotes. Re-quote occurs mainly because of the lag between your order and the order execution.
Weather forex VPS service, you can eliminate all these problems. Issues such as latency and re-quotes play a big role especially if you are using a automated trading system.
Higher reliability of services – No service disruptions
Using a forex VPS service offers you higher reliability of services. For example, if you live in an area that has poor Internet connection, then frequent disconnections can lead to incorrect raids.
On the other hand, a forex VPS service sets up that infrastructure so that there are significant backups involved. In the event that one server the forex VPS service provider automatically switches to another server.
The type of infrastructure that an average forex trader does not have access to. Another benefit of using VPS service in forex is the ability for remote access. This allows you to login to your virtual server from anywhere. You can also login remotely via a mobile app that allows remote desktop connections.
What are the options for forex vps solutions today?
Now that you understand what forex VPS is all about, let’s look at the choices available for forex traders.
It is important for traders to understand and choose the correct forex VPS service provider.
It would be a bad choice to choose a forex VPS provider only based on pricing. You might end up overpaying for services that you do not require.
Traditional VPS versus cloud VPS in forex
As mentioned earlier, traders are spoiled for choice when it comes to choosing a forex VPS. But these days, there are more choices for traders. You can choose between a cloud VPS solution and a traditional virtual private server.
If you are just starting out in the world of using forex VPS service, then you should stick to the traditional VPS solutions. This is the simplest and the straightforward way to help you get started.
Most forex VPS service providers offer you the choice to be billed on a monthly basis.
You can get started with this and then eventually once you gain familiarity you could look into cloud VPS services in forex services as well.
Do you need a forex VPS service?
Before concluding this article, we will leave you with a question. As a trader, do you really have the need of using a forex VPS service?
You may answer yes to this if you have an automated trading system that is making you money. On the other hand, if you use a manual trading system then a forex VPS solution is not the answer.
But this is not the case all the time. Many traders may have a different laptop or a work computer that they may be using. And many at times, this may not use the standard Windows operating system. In such cases, making use of a virtual private server in forex can be highly rewarding.