How Forex VPS Works in Forex Trading?
Day by day as the technology rapidly advances forward, business
infrastructure is getting complex. Business now days does not
necessarily need to be in physical place. VPS (Virtual Private
Server) is serving that purpose and forex trading became more
popular as the forex & VPS is combined together.
For having a clear insight about VPS and its relation with forex trading, first we need to understand what web hosting is.
What is web hosting?
Suppose you want to run a grocery store or any business which
is related with goods in the real world. For setting up the
business and selling the goods, a physical location is a must.
People who goes around your business location can easily see
that what you are doing.
Similarly, if you want to run an online business, the contents of your website requires a live place where people can see you & your business on the internet. That’s when it is necessary to put all your contents on a server, so that your website will go live on the internet. The way the server is making your site live is called web hosting.
What is VPS (Virtual Private Server)?
To run a website, a server is necessary from where it can be
live on the internet. Usually a server is made of powerful
processing power, more ram & vast storage system. When this
single large server is divided into multiple independent mini
servers, each mini server is called “Virtual private server
Each virtual private server has its own resources like processing power unit, RAM, operating system (OS) & storage capacity.
Is VPS for you?
Virtual private server is most suitable for the business that possesses these criteria:
New or growing business.
For owning a server to serve the business purpose at low cost.
Demands for customizable environment & features.
Easier management requirement.
Relation between Forex trading & VPS
Imagine you are continuously sitting in front of your computer
all day and analyzing the market trend for taking correct
bidding. You may be awake for one day, three days a week but
what about a month or whole year! It’s impossible.
According to Scientific American, a research was conducted and concluded that- “Average human can stay awake for 8 to 10 days”
To solve the continuous interaction, now forex trading can be done via Expert advisor or automated trading engine that is hosted on a virtual private server (VPS) for the 100% uptime.
Expert advisor or automated trade engine is a specialized software that works based on mathematical algorithms and parameter set by the trader. Such as meta trader 4, meta trader 5 etc.
So, now the forex trading & Virtual private server (VPS) comes together.
Trader orders for virtual private server service from site that provides VPS services. For instance- fxvps pro, forex cheap vps, fx hoster etc may more sites.
Here the VPS is hosting a platform such as meta trader 4 or 5 for the trader to communicate with broker.
Then the trader gets connected with the preferred broker by fulfilling the broker’s commission demand.
In one picture, all it needs a trader’s computer, broker’s Meta trader 4 or 5 server that all are connected to the internet.
Now it is not necessary to keep trader’s PC or connection all the time. Expert advisor installed on VPS are already doing its job with the broker full autonomously and the trading needs 100% uptime that is facilitated by the VPS.
Why VPS for forex trading?
Flexible trade accessibility
A trader can trade from anywhere with a stable internet connection and such flexibility is facilitated by Forex VPS.
Trader no longer has to turn on the computer or smart device all day to continue the trading. Because it is already automated on VPS.
More efficient and faster trading
A Virtual private server can execute all the trades more efficiently and quickly than human interacted computer. Much faster in sending orders, less delays and slippage. When a trade’s expected price is different than the price when the trade is executed is called slippage.
Smart performance at low cost
VPS is the best option for forex trading. Because paying up for the whole server for small amount of necessity is not cost effective. Low cost with high speed performance can only be provided by VPS.
Things That are Curical When Selecting a Virtual Private Server (VPS) Service
Virtual private server must have 100% uptime. Otherwise the trader will lose trades.
Virtual private server location is an important factor. Server should be located where the major trades occurs.
Latency is one of the most important factors of VPS. Latency is measured by MS (millisecond). High latency causes slippage, as a result trader loses in bidding. The lower the MS the better the trade efficiency and the probability of slippage.
PS should be using most accelerated hardware technology. For instance, using SSD (solid state drive) for fast data transfer of the server storage and speeding up the host site.
VPS service that offers the most security to protect the users confidential and valuable data.
VPS that are optimized for meta trader trading account is good.