Forex VPS hosting is a virtual private server hosting service that allows traders to use the resources of a remote virtual server to run their trading platforms 24 hours a day and 7 days a week. The Forex VPS hosting has some distinctive advantages over using traditional desktop or laptop machines.
VPS is the acronym for virtual private server. It is a service that if offered by many hosting providers and VPS specialists. By renting or leasing the private server, traders can then use this virtual computer to install and run their trading platforms.
Users can access the VPS via a remote desktop service on a Windows machine or its equivalent from a Mac or a Linux device. Clearly, there are some distinctive advantages of a virtual private server (VPS).
In online forex trading, one of the biggest concerns being that when your laptop or PC goes freezes, hibernates, or crashes can greatly affect the results, especially if you are in the middle of a trade.
Consider an example where you have taken a position for EUR/USD and suddenly your internet connection goes bad and the market started moving against your position and on the top of it you forgot to put STOP LOSS or TAKE PROFIT!! Cases such as these can greatly impact your forex trading as the risks are high.
This is where a forex VPS hosting comes into play to save the day. Forex VPS hosting allows Forex traders to take advantage of the virtual environment on the hosting company’s servers in order to run the Metatrader expert advisors non-stop 24/7. The forex VPS is always on-line and a powerful machine, unlike your home PC or laptop.
For starters, you can run the VPS continuously and don’t have to worry about re-booting your remote computer. This uninterrupted run of resources can mean a lot for a certain section of forex traders.
The price for renting a forex VPS can range from just under $10 per month to as much as $100, if not more.
In this article you will discover what forex VPS is all about and more importantly if you should opt for one in the first place.
Watch: What is a Virtual Private Server (VPS)
Virtual Private Server Hosting Structure
Three reasons you should use a Forex VPS hosting service
If you are in doubt whether you should spend money and rent a forex VPS service, here are three reasons to consider before you decide whether you want to use a forex VPS service or not.
1. You run automated trading strategies
Firstly, if you are a part time forex trader and one who prefers to manually trade, then using a forex VPS service doesn’t make any sense to you. A VPS server is ideal for traders who make use of resource intensive services such as running automated forex trading strategies, or make use custom indicators or trading tools.
There are many traders who prefer to run multiple trading platforms simultaneously. While one is used to back test EA strategies, another platform might be used for live trading and so on.
Using such resource heavy applications especially with automated trading systems can eat up a lot of your system resources if you used this on your traditional desktop or laptops. At some point, it would render your computer useless to go about doing your daily chores.
For instances such as these, it makes sense to hire a forex VPS service. Not only will it be easier to manage your trading activities, it will also free up your home or work machine from such activities and offer a more secure environment for trading or testing trading strategies.
2. When you are in the need of a windows operating system
Most of the trading platforms and charting software applications are still designed for use on the Windows machine. This means that if you own a Mac or a Linux operating system, this puts you out of bounds from most of the trading software applications.
In such instances, accessing your windows based virtual private server can help you in having a cheaper alternative to accessing your trading on a Windows server rather than buying a whole new computer.
The fact that you can configure your forex VPS which includes disk space, RAM can help you to build a private server that suites your trading requirements and of course your budget.
3. Access your trading platforms from anywhere
One of the biggest benefits of using a forex virtual private server is the ability to access your trading platforms from just about any computer; at home, office or elsewhere.
By making use of the remote desktop feature that is a default program on Windows and Mac and Linux machines, traders do not need to install any additional software. Of course, the only catch is having a good internet connection.
How to choose a forex VPS service?
Choosing a forex VPS service provider is very critical, considering that your virtual private server is being hosted and is at the mercy of the VPS service provider.
However, don’t make the mistake “expensive is better.” What many traders do not know is that most of the so called forex VPS providers hike up prices simply because of the word “forex.”
If you actually spend some time digging around, you will find that for nearly the same configuration and service level, you can get the same service for half the price.
To illustrate this point, a rather well known forex VPS hosting provider offers packages that start from $19.95 which comes with 640MB RAM and 28GB disk space, 1 cpu core and with the rest of the default such as a dedicated IP address and option to choose the location of the server.
For the same configuration, if not better (1GB RAM, 25GB disk space, 4 cpu cores), you can get the VPS service for just $17.50.
So why the different prices you might ask? Well, it is all about marketing and with forex being such a lucrative niche, simply adding the term forex to a VPS service suffices to hike up prices.
How to set up a forex VPS hosting?
When you sign up for a forex VPS hosting account, the hosting provider gives you the IP address of the virtual server assigned to you.
You simply create a link to your VPS on your desktop with the IP address assigned to you. Most forex VPS hosting servers comes pre-installed with the MT4/MT5 trading platforms.
As a forex trader, you will only have to install or upload your forex expert advisors on to the VPS system. This is usually done through a FTP or a file manager client.
For forex traders who use a different platform other than MT4, can simply upload and install the trading platform onto their VPS servers. Once you install and execute your expert advisors, forex traders can simply log off the VPS and let the machine do its job.
An important point to bear in mind is to opt for a VPS provider whose servers are located close to where your broker’s servers are. Latency is the delay in transmission and considering the fact that you are using a three way connection (you->VPS->Broker), there can be a significant lag, especially if the Internet is dodgy.
As an example, if you are trading with signals, there is a perceptible time delay for that signal to arrive at the broker for execution, this is usually in milliseconds. Servers based far away from the forex brokers servers can see the impact of such delays in the bid or ask price that is transmitted and what is eventually achieved.
Watch: How to connect to a VPS
What factors to consider when choosing a VPS service for forex trading?
Following some of the vital points which you should consider choosing the right VPS hosting:
- Make a note of all the key features which you want with your VPS (more bandwidth, disk space, higher RAM, etc)
- Don’t just blindly opt for a VPS service because you saw an ad or your broker recommends them. Instead, spend some time and run a quick check on the features and compare prices
- Always match your chosen VPS features with your selected plan and see if that fulfills all your basic business requirements
- The next important thing to look out for is your internet hosting provider. You must make sure that your VPS hosting provider grants you with a 24/7 online service throughout the year, so as to help you overcome any kind of uncertain technical issue
- In order to trade from any part of the world, you must make sure that the virtual platform you have been endowed with must come in handy, and can be used anytime from anywhere at your expediency
- Your opted plan must allow you to install your desired platform, or else, you will be unable to trade on your VPS, making it a dissipate purchase
- In order to have a guaranteed technical support from your hosting provider, you must interact with the technical support team and get a complete idea about their offered service and competency
- The VPS hosting provider must have adequate personal for technical support with a thorough knowledge about their offered product and should be at your service 24/7. This must be done before you acquire your VPS
- Last but definitely not the least, the VPS provider must provide you with an up-time of 99.99% in their service level agreement (SLA)