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Although you may be familiar with the term VPS (virtual private server) due to their excellent performance and the security they can provide website owners, you may not be aware that a good VPS can supercharge your forex performance within the trading landscape.
From executing super-fast trades to providing around-the-clock uptime for trading bots, there are plenty of benefits to adopting a forex VPS, and this article will help to explore seven reasons why they can be considered essential for ambitious traders. But first, let’s take a deeper look at how an FX VPS works:
What is a Forex VPS?
In a nutshell, a forex virtual private server can help to permanently connect your trading terminal to a wider trading network.
This means that you can remain connected through the server to platforms like MetaTrader 5, even if your own internet connection experiences an outage or your computer crashes. It’s this ability to remain connected and capable of executing trades on an ongoing basis that’s made the use of a VPS very popular in the world of trading.
Without a VPS, you may struggle to open, close, or amend trades as efficiently as possible, and in a market that’s as fast-paced as the world of forex, this can be quite the disadvantage.
With more than $7.5 trillion changing hands within forex each day, it’s the speed and uptime afforded by a VPS that can offer a tangible advantage in a competitive landscape.
But why should you abandon your traditional approach to trading to incorporate a VPS? Let’s explore seven key reasons why virtual private servers can take your high-frequency trading strategy to the next level:
1. Minimizing Latency
Every forex trader should be aware of the risks posed by latency. It acts as a measure of the delay between the time it takes for data to be sent and received online, and if your latency rate is too high, it could cost you thousands of dollars in missed opportunities.
In the world of FX, if you execute an order at a specified price only for a delay to occur, the price you wanted to buy is liable to change and you’ll no longer be able to place your order.
When you decide to execute a trade, you undergo many steps in the process before it’s completed on your trading portfolio. If your latency isn’t up to scratch, you run the risk of losing out on many high-value deals from high-frequency trades.
This is where a good VPS can come in and save the day. For instance, MetaQuotes’ MetaTrader 5 VPS has recently undergone a major service update which has been geared towards improvements in user experience and ensuring that the server’s latency remains optimal for the brokerage servers it serves.
The MetaTrader 5 VPS operates across over a dozen hosting points around the world, helping to achieve latency of less than five milliseconds for 82% of its brokerage servers. This, coupled with maximum uptime of 99.99%, means that traders can enjoy swift execution speeds through the VPS.
2. Around-The-Clock Trading
Another key reason why a VPS can greatly improve high-frequency trading is that it has the power to operate on a 24/7 basis. This is good for two reasons. Firstly, this perpetual uptime means that you have the power to continue trading even though your internet has cut out, or if your computer has shut down.
Secondly, it empowers your trading bots to still buy, sell, and discover high-quality trading opportunities even while you sleep. Exchanges can be leveraged even if you’re not online, meaning that your trading rig can always remain open and ready to capitalize on the next opportunity.
3. Enhanced Security
The great thing about a virtual private server is that it offers greater security for traders, too. By taking your time to research your choice in VPS providers, you can look out for servers that have undergone sufficient checks and that have implemented frameworks to keep the server safe from vulnerabilities.
With so many choices available when it comes to finding the right VPS for your needs, it’s worth comparing your options to discover the server that has the best reputation for safety.
4. Minimizing Slippage
As we’ve already touched upon, the low latency offered by a VPS can also help to decrease the chances of slippage occurring. This is because trades can be executed externally from your computer, which means it’s free from the confines of hardware that could conspire to delay the process of buying and selling FX.
This can also help to convert fewer deferrals, helping you to save money on lost trades and ensuring you can act on the best deals possible.
5. Freedom of Customization
Many virtual private servers allow traders to customize their preferences alongside their favorite software and hardware configurations.
This means that, although you’ll be using a brand new server for trading, you can still further optimize your trading experience by altering your VPS environment should the one you’re using become unstable or sluggish–leading you to switch to a fresh configuration without impacting your system’s resources.
6. Low-Cost Approach to Trading
Additionally, a forex VPS is a more cost-effective means for FX traders to swiftly and securely execute trades without having to run their own servers. It’s even possible to rent a Forex VPS server at a relatively low cost, while there are also a number of free options like Hostinger VPS that traders can utilize to support their trades.
7. Greater Levels of Flexibility
Perhaps one of the most appealing features of utilizing a VPS for your forex needs stems from the level of flexibility it offers. Rather than relying on your trading rig to take on trades, a VPS allows you to leave the home and make trades while sat in a coffee shop, or at the park.
You can even make your high-frequency trades with the help of your smartphone without having to stay confined to your home or office.
The best servers are fully accessible through handheld devices and a broker doesn’t even need to offer a platform for mobile trading at all–it can simply be accessed via your VPN with the help of a WiFi connection.
Finding a VPS to Suit Your Needs
Although there are plenty of benefits available to VPS users, it’s still worth taking the time to research the market and find a server that suits your needs.
Virtual private servers can be expensive to run for leading providers, and system requirements could mean that you’ll end up with a VPS that requires more RAM than your system can use.
It’s also worth taking a moment to consider whether a VPS is right for your needs. Excellent latency levels and reduced slippage can be a money-spinner for high-volume traders. For casuals, however, it may be a little superfluous for your needs. Despite this, there’s no better way to trade forex in confidence around the clock than through a virtual private server.
