Forex trading is the most traded market in the world. Forex traders need a Virtual Private Server (VPS) for their Forex trading due to its high volatility and unpredictable nature.
This article will outline why you need Forex VPS trading and how it can help your success as a trader.
What is a Virtual Private Server
A virtual private server is an isolated environment that runs on physical hardware which has been partitioned or otherwise segregated from other environments. The isolation provides security, reliability, segregation of duties, scalability, manageability and availability of systems resources among others benefits.
A VPS is very similar to having your own physical server without the associated hardware expenses.
The most popular types of virtual private servers are Linux, Windows and recently Cloud VPSs which allows users to use all types of Operating Systems on one Virtual Private Server.
This is good news for Forex traders since they require multiple environments such as a Microsoft Windows based operating system for Metatrader 4 and a Linux based operating system for the cTrader platform.
Why VPS Is Important To Forex Traders
- It allows them to trade on multiple platforms without having to worry about their computer crashing or slowing down. This is vital because most successful Forex traders use multiple trading platforms to increase their chances of success.
- It allows them to customize their VPS by installing software that is compatible with multiple platforms. Forex traders can use a VPS on any type of computer which ensures they will always have a working environment, even on older hardware. Most forex brokers provide the opportunity for you to rent a virtual private server from them as part of their trading package.
- It gives them the ability to trade from any location in the world as long as they have an internet connection. This is important because Forex traders can take advantage of market opportunities no matter where they are in the world. It provides fast execution speeds and low latency which is essential for successful Forex trading.
- It protects your computer from unauthorized access which can result in stolen data or money. A VPS is a secure and private environment that is not accessible to the general public. It’s like having a separate computer that is completely dedicated to Forex trading.
- It provides the freedom to customize your VPS with your preferred software and hardware configurations. This allows you to maximize your computer use by creating multiple environments. If one environment becomes slow or unstable, you can then switch to another without affecting your system resources.
- It allows you to get your Forex trading environment set up quickly. All it takes is a few minutes to install the right software (Metatrader 4, Ninja Trader, PPro8, etc.) on your VPS and you’re good to go. Trading platforms are compatible with most virtual private servers.
- You can always rely on your VPS for uninterrupted trading. Your VPS will be online 24/7 so you can always trade the markets no matter what time of day it is.
» Related: How to Develop a Forex Expert Advisor Tool
What Do You Need To Consider Before Using VPS For Forex Trading?
- Your VPS needs to be compatible with the trading platform you are using. For example, Metatrader 4 is compatible with Windows based operating systems while cTrader is compatible with Linux based operating systems.
- You should make sure your Forex broker offers a VPS service before signing up for an account since they are not all providing this service. Some brokers include VPSs while others charge a monthly fee for the service.
- There are different types of VPS services so it is important to understand all your options before signing up for one. For example, some brokers offer unmanaged VPS services which means you are responsible for the installation and configuration of your software. Other brokers offer managed VPS services which means the installation and configuration is done for you by the broker’s support staff.
- Make sure you have a reliable internet connection if you want to use a VPS for Forex trading. Your internet connection should be fast enough to handle multiple connections from different applications.
- You should make sure your VPS has enough RAM and CPU power to handle the trading software you use. Most Forex trading software requires a minimum of 2GB RAM for Windows based operating systems and 2GB or more if you are using Linux based operating system. Some applications require faster processors so you would need to upgrade your hardware accordingly.
- You should back up your data regularly in case of a computer crash or unforeseen problem. Most Forex brokers do not offer backup services, so you will need to find an external source to back up your data.
A virtual private server is a great way for Forex traders to maximize their trading potential while protecting themselves from unwanted intrusions. It’s also easy and quick to get set up with the right VPS, so there are many reasons why you should consider investing in one.
While these benefits make this service seem like an obvious choice, it does come with some drawbacks that you need to be aware of before signing on the dotted line. It’s also important to note that some Forex trading platforms are not compatible with different types of operating systems.