Virtual Private Servers, or VPS, are popular for trading forex markets.
They offer a better trading experience by providing a secure, low latency, and stable environment. By minimizing the downtime and technical glitches, VPS gives you 24/5 access to the forex markets.
In this article, we’ll uncover the reasons for selecting a VPS for your forex trading activities.
Without any delay, let’s begin.
What is VPS?
Virtual Private Server, also called VPS, offers virtualized resources with dedicated space and better performance than shared hosting.
VPS is somewhat similar to shared hosting but with its operating system and configurations. That means your speed performance is unaffected by others, and you can customize the server to match your business needs.
Because of its robust performance, VPS hosting is used for hosting large websites, hosting web applications, creating virtual software development environments, using high-frequency trading, and hosting financial tools that need real-time updations.
Since Forex markets operate 24/5, it’s wise to use a VPS connection to avoid losses due to connection failures in real-time. Next, we’ll dive deeper and understand the significance of usingVirtual Private Servers compared to other hosting options.
Importance of Having a VPS for Forex Trading
Foreign Exchange, or Forex, is the largest financial market, with volumes of transactions executed every second.
Although you need a small amount to start trading, you need to safeguard yourself from the dynamic nature of the Forex market. Not only do you need to be aware, but you also need to adapt to the ever-changing volatile scenarios that are triggered based on news.
It’s essential to mention that many traders lose their hard-earned profits due to technical glitches and inefficiencies in trading setups. Most of the time, these losses occur due to instability in the network, sudden loss of connectivity, and delayed execution of orders.
To get rid of the above issues, many traders invest in a good VPS hosting service that keeps their trading setup stable around the clock. Let’s explore in detail why you should also think of investing in a good VPS service for your trading setup.
Reasons for Using VPS for Forex Trading
Here are some of the benefits of using a VPS for forex traders:
24/7 Trading
Forex markets operate 24/5, which may not align with your local timings. You need to always stay connected with your trading platform to monitor your trades.
Even a slight downtime in the connection can incur losses and wipe away your hard-earned profits. With a good VPS in place, you can execute trades even if your local computer is disconnected.
In short, VPS ensures you take advantage of all the trade opportunities despite local issues.
Remote Access From Anywhere
In terms of work, trading can be performed from anywhere in the world. VPS hosting gives you the ability to access your trading platform if you have a good internet connection.
The beauty of VPS is that users can access their servers remotely using SSH and RDP protocols. You can use this flexibility to monitor or adjust your trades at any time, especially if you are on the go and need to use a laptop or a smartphone.
Low latency
Latency or network latency is the time required for data to transfer between two places(data centers). The lower the latency, the better performance in speed and loading time.
Virtual service providers locate their servers near financial hubs and data centers to reduce the distance and delays caused by network infrastructure equipment. Lowering the transmission distance reduces the latency and provides a huge amount of data transfer in a shorter time frame.
Low latency is useful in forex trading, especially for traders who perform scalp trades and use high-frequency trading.
Security
VPS hosting servers are more secure than shared hosting connections because each virtual server has its operating system, dedicated resource environment, and configuration settings.
Moreover, the VPS environment has a smaller number of owners as compared to shared hosting, which increases the risk of server overloading. Because you own an independent portion of VPS, your resources are more secure and stable.
Usually, VPS service providers offer security features such as DDoS protection, data encryption, and firewall systems. This way, you safeguard your trading account from potential cyber-attacks and financial frauds.
Stability
If you are using local computers and local internet solutions, you might be aware of the downtime, leading to missing trade opportunities. Compared to local internet solutions and shared hosting, VPS are more stable and offer uninterrupted bandwidth.
As there are negligible fluctuations in the network, you will not experience the fear of missing out on trades due to downtime and technical glitches.
Automated Trading
Due to the fast-paced nature of the forex market, more and more institutions are adopting algorithmic trading for executing their orders.
Execution of such fast trades is possible with a reliable VPS service in place that has low latency and is secure from cyber-attacks.
With a good VPS system, you can automate your trade and execute your processes at a faster speed, even during a power outage.
Owing to round-the-clock availability and continuous server monitoring, these servers are stable and reliable for automated trading.
Data Backup
Many VPS providers offer backup solutions, ensuring all your data and trading specs are safe in case of system failures. Moreover, with easy backups, you can run batch files with shell access.
Some of the prominent VPS service providers that provide backup are V2 Cloud, ForexVPS, AccuWeb Hosting, and more. With such providers, you also get assistance in tasks like migrations, monitoring backups, updates, and system maintenance.
Scalability
Most VPS service providers offer users the ability to select the resources and the freedom to scale up or down as per their trading requirements. This makes your system powerful by increasing memory, storage, and processing power to evolve your trading system.
Users can also choose between operating systems like Windows, Ubuntu, or other Linux distributions depending on their hardware needs and where they run their trades.
Top Forex VPS Hosting Picks for Seamless Trading
While selecting a VPS solution for your Forex trading, you should consider some important parameters like cost incurred, yearly plans or monthly recurring, uptime, bandwidth, performance report, customer service, etc.
You can also choose customized plans specifically designed to match your needs, making it a versatile solution for your trading purpose.
Here are our top VPS picks that most traders use for trading forex.
#1. ForexVPS.net
ForexVPS.net is one of the most widely adopted VPSs by traders all over the globe. It’s trusted by over a million traders and takes less than 10 minutes to set up ForexVPS for your trading activities.
ForexVPS does not share your resources with others on the network and ensures you always get a 100% uptime performance. Their servers offer a 16 Gbps network interface and are backed by 5 data centers worldwide so that you can trade at a lightning-fast speed in the Forex market.
A basic plan with 2GB RAM, 60GB SSD, and 1 CPU costs $29.99/month, among other things. For payments, ForexVPS accepts Bitcoin and other cryptocurrencies, PayPal, Skrill, and credit/debit cards.
#2. Kamatera
Kamatera is an international cloud service provider delivering enterprise-level virtual private server (VPS) hosting solutions to a plethora of businesses.
It has a vast network of data centers that ensure you get fast speed and interrupted performance with full availability. The platform guarantees 99.95% uptime and claims to offer infinite scaling of the network to match your business needs.
At a starting price of $25/month, you get 1 vCPU, 30 GB SSD storage, 5 TB traffic, Windows OS, unlimited bandwidth, etc. For any package you choose, you can also take a 30-day FREE trial.
Besides the above-mentioned VPS providers, some other prominent mentions include AWS, DigitalOcean, MetaTrader VPS, Vultr, and so on.
Final Words
Now that you have a decent understanding of how VPS can uplift your trading profits, it’s a good idea to consider a basic plan for your forex trading.
When considering a VPS connection for your forex trading, consider factors like pricing, location of servers, reviews, customer care response time, and any particular requirement that you want for your trading setup.
We highly suggest testing the VPS connection with a demo account before opting for yearly plans to ensure it meets your trading requirements. This small investment in forex trading VPS setup will surely reap profits in your long-term trading journey.
Next, check out the best Forex VPS hosting for uninterrupted trading.
