The benefits of using a Virtual Private Server (VPS) when trading

For years, we have heard about virtual hosting only in relation to website hosting. But virtualisation has started to play a major role in financial markets as well. Virtual Private Servers (VPS) make financial applications safer and more efficient, allowing traders to enjoy benefits such as greater privacy, the ability to customise, and dedicated resources.

The proliferation of VPS technology in various industries has been the source of significant market growth forecasts. According to a study by Market Research Future, the global VPS market is expected to grow at an average annual growth rate of 14%, reaching a size of US$7.2 billion by 2025.

Forex trading via VPS is gaining popularity among retail trading communities. A large part of these traders are unable to afford the high fees, unlike institutional traders, who can set up their trading engines near the servers, from which they obtain proprietary information.

This is why the demand for VPS services in the forex market has increased, offering similar advanced trading options, 24 hours a day, at significantly lower costs than co-located facilities.

How does a VPS work in forex trading?

When a forex VPS hosting service is set up, the trader is assigned an IP address, along with a username and password, to access the system. A program, called "Remote Desktop Connection", is provided for a Windows operating system, which can be accessed simply by using the start menu button. Once the login details have been entered, operators can access a "virtual office", where they can download the MT4 platform or simply load expert advisors (EAs) onto the VPS.

Traders have enormous control over the PC, the connection of the VPS with EAs and the broker's MT4 server, which does not require 24/7 uptime. Installed EAs send orders to traders. MT4 servers stand-alone, which means network uptime is maintained throughout the day, whether the broker's computer is on or connected to an Internet connection.

Benefits for traders

Trading in the fast moving forex markets requires greater stability and faster connectivity than any other financial instrument, and this is where virtual hosting offers multiple benefits. VPS provides traders with a full Windows virtual desktop that they can access and use from anywhere in the world, 24 hours a day, allowing them to stay connected to their trades at all times. Operators can also access their VPS systems on mobile devices, giving them great flexibility.

Those who opt for automated trading can continue trading even in the event of a power failure. The system can continue to trade 24/7 without the need for monitoring. In addition, VPS systems in the forex market are stable and reliable platforms to start an automatic trading strategy.

The hosted servers will be continuously monitored to ensure business continuity. This means less risk of missing out on trading opportunities and consistently high execution speeds. Faster execution speed means less risk of slippage, which is a major advantage for those who do not use Expert Advisors.

VPS hosting also boosts transaction security by removing any loopholes in the event of a disaster. As these servers are continuously monitored by a dedicated community, all network maintenance activities and anti-virus installations are kept up to date. There is less risk of system errors, crashes and hacks.

Virtual private servers also offer a high degree of customisation to traders. Once accessed remotely, the system can be configured according to the trader's needs.

Comparison of forex VPS services