For years, only virtual hosting has been heard of as a way to host websites. But, virtualization has also begun to play an important role in financial markets. The virtual private servers make financial use more secure and efficient, enabling the users to enjoy benefits such as dedicated resources, optimization capabilities, and greater privacy.
The spread of VPS technology in the vertical segments of various industries is credited to be a significant market growth forecast. As per Market Research Future, the global VPS market is estimated to grow at a 15% CAGR, which will reach $7,181.3 million by 2024.
Recently, forex trading through a VPS has become more popular in the retail trading communities. There exists a large segment of retailers who can’t pay hefty fees, dissimilar to institutional merchants, can set up their trading engines close to the server, from where they obtain specialized information.
Therefore, the demand of the forex VPS services, offering the same advanced trading options throughout the day, at significantly low costs as compared to available facilities.
Also read: Comparison of Best Forex Cheap VPS for 2021
How a VPS works in Forex Trading?
After setting up a forex VPS hosting service, the trader will be allocated an IP address with a password and username to access the system. The trade can also get a Windows-based operating system by a Remote Desktop Connection program, and it is accessible by using a start menu button. After entering the login details, the traders can have access to Virtual Desktop. Here, the MT4 platform can be downloaded or Expert Advisors can also be uploaded to the VPS.
The traders get great control over the PC, VPS connection with Expert Advisors, and MT4 server of the broker, none of them needs 24/7 uptime at the end trader. Installed “Expert Advisors” will send the orders to the MT4 servers separately. It means that the network uptime is maintained throughout the day, irrespective of whether the computer of the trader is on or connected to the internet connection.
Benefits of VPS for traders
Trading in high-speed forex markets needs more stability and fast connectivity than any other finance-related instruments, and this is where virtual hosting provides many advantages. VPS for traders provides a complete virtual Windows desktop that they can have access to and use from everywhere throughout the world, 24 hours a day, which enables them to keep connected with their business at all times. The traders can also access their VPS on mobile phones giving them a high degree of flexibility.
The people who select automated trading can continuously trade despite the power outage. Without monitoring this system, 24/7 trading can continue. Furthermore, Forex VPS systems are a stable and reliable platform for launching automated trading strategies.
The hosted servers will be monitored continuously to make sure continuity of operations. It shows the fewer chances of missing out on trade opportunities and permanently high-speed implementation. Fast processing speed means lower slippage chances, which is a huge advantage for those who don’t use EAs.
VPS for traders is also enhancing security in trade by removing all loopholes to deal with disasters. Because such servers are constantly monitored by the dedicated community, all network maintenance activities and antivirus installations are kept up to date. The chances of system errors, crashes, and hacking is low.
Moreover, the VPS offers advanced customizations to the traders. Once obtained from a remote connection, the system can be customized to suit the needs of the trader.
In short, network outages, power outages, system outages can’t affect the positions of a trader. Dissimilar to shared hosting, the VPS for traders does not include resource-sharing sites with neighboring websites. All the websites act as a separated server area with their OS, storage spaces, and monthly data limits, which enables smooth and reliable trade performance.
Things to consider when selecting a Forex VPS for traders
A system that enables the trader’s high-efficiency flexibility and security may be costly, so it is important to look at certain parameters when choosing the right plan to meet your needs.
The companies that provide VPS for traders can distribute their resources across multiple users, due to the technology named “Virtualization”. But the heavy workload of some traders can affect the performance of the system for other users. So, make sure you select a system that guarantees 99.9% as a minimum uptime. The service provider must have the necessary resources to move traders to the other compartment when a specific individual experiences downtimes.
2. Broker’s Server Location
To minimize network delays, it is quite important to select a service provider located near your broker’s server. Network delays should ideally be less than 5 milliseconds.
3. Choose from a variety of plans
Choose a plan that meets your specific needs. Your provider must be capable of help you with several subscription options.Moreover, the VPS service provider also must be simple and smooth with all kinds of trading styles, including all kinds of Forex applications and software, along with automated trading strategies.
4. Regulated Broker
The collaboration of regulated forex brokers makes the process smoother and faster. In addition, you will get dedicated services to solve all your queries, 24 hours a day. Check the online reviews and broker’s website for their track record.
5. Industry-leading trading platform
Popular Forex brokers will enable you to access leading trading platforms such as MT4 and MT5 on Virtual Private Servers. These platforms not only make sure the latest technology and extensive technical analysis tools, but they also offer the ability to trade with Expert Advisors. Indeed, programming languages such as MQL5 and MQL4 are developer-friendly, which allows the traders to create their automated trading strategies and custom indicators as well.
When the traders run Expert Advisors, Forex VPS for traders are the utmost benefit, so they can manage market positions. If you are using Expert Advisor to implement your strategy, be sure to test it again using “Strategy Tester” on your platform to test performance.
Also read: The Perks of Trading FX VPS – Why Choose it?