What is Forex VPS Hosting?
Automation and efficiency have become two of the most important aspects of modern trading. To be a successful trader you need to think about how to incorporate these things into your trading strategy, starting by having the right technology mix. That is where forex VPS hosting comes into play.
It wasn’t too long ago that the only viable way to make the most of automation in trading was to sit down and create your own dedicated software. If you wanted something to automatically analyze the markets and place a trade, you’d need a lot of time and background knowledge in areas like computer science, mathematics, software coding – specialist skills that are beyond most traders, especially beginner traders.
As in most industries, things have changed quite a lot. It’s now very easy to access a suite of technology and trading platforms that cover all the most important tasks in the trading journey.
How Does a Forex VPS Work for Traders?
Retail forex traders get a forex VPS to let their software’s expert advisors continuously execute trades 24/7, even after they shut their personal computers or during a power interruption and internet connection loss. VPS hosts retail traders that do not afford larger-scale trading engines while providing the same quality of performance with the same advanced facilities but at a more affordable price.
VPS can run different electronic trading platforms or software like MetaTrader4 or MT4 and MetaTrader5 or MT5, which retailers most commonly use. Its servers let MT4 expert advisors (EA) initiate non-stop and execute trades. Depending on your plan’s RAM, a Forex VPS can run multiple instances of MT4 securely and smoothly.
Why should I use a forex VPS?
The benefits of a Virtual Private Server (VPS) for automated trading include continuous internet connection and faster execution speed. VPS services are powerful, offering CPU speeds up to 20% higher than comparable servers because they have more RAM available to run processes in parallel while minimizing usage spikes from other clients on the same server.
Some other important features about forex VPS hosting include:
Backups
Forex VPS servers constantly create backups of your entire trading configuration, including the operating system and trading software. No matter what issues you might have with your computer or devices, a VPS acts as a kind of safety net to protect you against issues that arise if a connection is unexpectedly broken. It means you can carry on trading without missing out on opportunities.
Improved latency and reduced slippage
Latency in trading basically describes how fast your trade gets executed. In other words, it’s the time between the moment you hit the OK button to confirm trade and the moment your trade is received in the marketplace.
In trading, latency is measured in milliseconds but in such a fast-moving market, milliseconds can matter a lot. So, the lower the latency the better. And one way to reduce latency is by having computer servers physically closer to exchanges, which is what a VPS connection gives you.
And with a fast connection, you’re less prone to slippage, which is the difference in the actual price between the moment you hit the button to confirm the trade and the moment the trade is received and completed.
The online world may seem instant, but everything takes some time. A major advantage of using a VPS is that it can be a low-cost way to improve your latency and give you more reliable pricing.
Simplicity, security, and efficiency
When you’re trading forex online it helps to think of it as a business that you’re running. You’re essentially investing money to try and make more money. So why wouldn’t you choose to implement the best technology to give yourself the best chance of being more profitable?
A VPS is a simple and cost-effective way of helping you safeguard your system and reduce your level of risk so you can concentrate on building a path to being a successful trader.
Conclusion
There are many factors to consider when it comes to your forex trading platform. The speed, stability, and accuracy of your server are all extremely important. Don’t let your trades become a victim of slow technology. Use a Windows VPS to make sure your trading is as fast as possible.