Brokers with a VPS (virtual server)

Brokers with a VPS

Brokers that offer a VPS facilitate ultra-fast 24-hour automated trading for their traders through the use of virtual server hosting.

A VPS allows a trader's strategies to be implemented from a remote online location, without the trader having to be on the internet. Below, we'll explore what VPSs are, how they work and what to look for in brokers that offer them. We have also compiled a list of the best brokers offering dedicated VPS services below.

How do VPS's work?

VPS stands for virtual private server. Along with shared and dedicated hosting, a trading VPS is one of the three types of web hosts. Using a VPS gives you the same benefits as a dedicated server, including your own operating system, dedicated storage space, powerful computing, scalable RAM and unlimited bandwidth. Other websites can be hosted on the same server as yours, but you will be in charge of your own virtual space. A VPS is essentially a cloud-based virtual desktop located in a data centre somewhere in the world.

Whether or not you need a VPS-equipped broker depends on your trading strategy. If you want to buy and hold financial assets for long-term investing, a VPS isn't necessary. However, if your strategy is to enter and exit positions quickly and use automation, it's best to find a broker with good VPS hosting capabilities.

Computer viruses, power outages and connection failures can be disastrous for any trade. During times of volatility, this can be especially damaging. By using a broker with VPS hosting capabilities, your account will be permanently connected to the internet. This should eliminate delays, interruptions and outages, as well as dependence on a PC or mobile device to track trades. Therefore, traders who use trading robots or automated trading software will find a VPS extremely useful.

Benefits of trading with a VPS

  • It runs 24 hours a day, 7 days a week - VPS hosting ensures that your trading account is always online. This is especially important in highly volatile markets, such as the forex, where slippage, power outages and internet blackouts can result in huge losses.
  • It's ideal for EA's and robots - Standard trading setups using MT4 and similar platforms rely on a local computer connected to the internet to operate. To execute trades using an EA, your computer must be permanently online. Using a VPS allows the trader to bypass potential connection issues and means that his or her trading robots can continue to operate when the trader is not connected.
  • Faster trade execution - Latency is the gap of time between the two points of a trading infrastructure, i.e. between your platform and your broker's server. If you find a VPS server in the same location as your broker's servers, it will reduce latency and allow for faster trade execution and reduced slippage.
  • Less system overload - You can host multiple accounts with the same broker on a VPS server. If you do it on your local computer, this might put a huge strain on its processor. However, using a VPS server eliminates the risk of overloading your local computer.
  • Automation support - The best VPS brokers can provide abundant support to help you get started with your automated software. Trading automation is a complicated and daunting task for a beginner, so this extra assistance can be very helpful.

Flipside of trading with a VPS

  • Manual trading is at a disadvantage - If you are interested in more traditional forms of investing such as buying, selling and holding currencies, stocks or indices manually, using a VPS will put you at a disadvantage. The time it takes to send a signal from your device to the VPS and then to the marketplace will be slightly slower than placing a trade directly on your local computer.
  • Cost - Most stock trading VPS providers are third party companies that charge users for their services. You will be able to find brokers in partnership with free VPS providers, but this can also have a cost that is factored into account fees and spreads. However, it will still be cheaper than using a dedicated server. Keep in mind that the more RAM and CPU you need for your VPS, the more expensive it will be.
  • Setup time - You will need to integrate the server with your broker's trading platform for everything to work. This process can take a bit of time, but the best VPS brokers will provide you with full hardware and support to get you started.

Choosing a broker that offers a VPS

If you need to find a broker that offers a VPS, here are a few items to keep in mind:

  • Performance - Cutting edge technology used by VPS providers divides their resources among multiple users. If a user has a particularly high workload, it can affect the performance of other users. To make sure you find the best performing VPS broker, compare factors like available CPU, RAM, and memory.
  • Plans - Check to see if the broker offers a variety of plans that meet individual needs. Finding a broker with flexible options means you'll get a pricing structure that works best for you.
  • Location - Finding a VPS located near (or at) your broker's server will dramatically reduce latency and allow for faster trade execution. There are many online tools that let you measure and compare VPS latency.
  • Applications and operating systems - The best brokers with VPS will allow the integration of a range of software and trading applications. It can be MetaTrader or cTrader. Also, make sure that the VPS service is available for the operating system you use, whether it's Linux, Mac or Windows.
  • Security and DDoS protection - VPS systems often offer extreme levels of security. Make sure that your server is checked regularly and that it is protected by anti-virus software. A DDOS (Distributed Denial of Service) attack is an attempt to disrupt the normal traffic of a targeted server. So make sure your VPS provider has DDoS mitigation procedures in place to protect your trading.
  • Customer Support - Getting started with VPS brokers can be a daunting task. To make sure you're never left in a difficult or financially scary position, find a broker that offers 24-hour support.

Once you've made your choice, here's a quick guide on how to start using brokers with VPS:

  1. In general, you will need to ask your brokerage firm to use the VPS service.
  2. Once this request is approved, you will receive a username and password that will allow you to connect to the server using a remote desktop application.
  3. Once the connection to the VPS is secure, you will be taken to a desktop environment that is similar to that of your own local computer.
  4. You will then be able to log onto your trading platform and trade as usual.

A final word on brokers offering a VPS

The rise of automated and algorithmic strategies in the investment and trading worlds has resulted in a high demand for brokers offering VPS systems. This means that there is a lot of competition and it can be difficult to find the best broker. If you are determined to find a broker with a VPS, there are a few key things to consider. Low latency is important for the speed of transaction execution, and if you want to manage multiple accounts, a high level of RAM and CPU is a must.


Why should I consider a broker that offers a VPS service?

If your trading strategy relies on automation, using a VPS broker offers many benefits. A sustained connection and faster execution speeds will eliminate the risk of a blackout or slippage, while still allowing trading algorithms to work while you're away from your computer or device. Some VPS services may even offer higher RAM/CPU speeds than your own computer.

What are the best VPS brokers?

The most common trading software, such as MetaTrader, doesn't need amazing computing power to operate properly. A good VPS broker will offer at least 1 CPU, 1GB of RAM and around 25GB of hard drive. Remember, the higher these specifications, the faster your execution speed will be, but the higher your costs will be.

Are VPS brokers reliable?

Not all brokers are created equal, but most reputable ones are reliable. However, it's important to do your research to make sure that you're getting the best possible service. Choose a broker with strong security procedures, such as firewalls and DDOS protection, and check out customer reviews for extra peace of mind.

Can I have several accounts with a VPS broker?

Yes, as long as you meet certain criteria such as the minimum account balance. Using brokers with a VPS can allow you to simultaneously manage multiple accounts, but you need to keep your RAM and CPU usage levels in mind as overloading the system can reduce trade execution speeds.

Do brokers offer free VPS systems?

Yes, some brokers offer a free VPS for traders who deposit a certain amount into their trading account. For example, XM offers a free VPS if you have at least $5,000/€5,000/5,000£ in your account.

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