A virtual private server (abbreviation VPS) is a virtual space and machine that can be rented for a monthly fee and used for different purposes. Basically, it’s a virtual computer that you can rent and use it for your needs.
You might be wondering why would you need to rent a virtual computer when you have a real one at home?
The reason is because these virtual private servers are much more powerful and stable than a home PC or laptop is.
VPS and Forex Trading
Before we get into the details, let’s see who in the world would need a VPS for FOREX trading?
In most cases, if not all cases, FOREX traders use a VPS to run an automated trading strategy (so-called “FOREX robots” or EAs).
So, to run a robot the trader needs to keep his trading platform open the whole time, have a stable operating system, stable internet connection, and no power outages. If all of these conditions are not met his trading robot will not work and therefore his automated trading strategy can not work either.
VPS stability needed for FX Trading
A virtual private server is a good solution for traders who need long hours of stable performance. And, most VPS services do in fact deliver 99% uptime. For a trader who relies heavily on the performance of an automated trading strategy, it’s well worth spending money on a VPS to have a stable performance instead of having to worry about the technical things all the time.
VPS providers have special systems built to function and to keep the servers up 99.9% of the time. These companies invest a lot of money in their server computers, ultra-fast internet connection, and stable electricity systems to be able to maintain a 99.9% running time of their machines. It would cost a fortune to build such a system at home if it’s possible at all.
Forex VPS Advantages
So, here are some of the advantages of trading with a robot on a VPS over running it on a home computer.
24 hour non-stop automated trading performance (if that’s what you want to do) While yes you can run your computer for 24 hours if you want, but a home computer is just simply not designed to be run non-stop. With a VPS, you can just set up your robot, adjust all the different parameters as you want them to be and let it run non-stop. If you trust your strategy enough you don’t even have to log on to the VPS to constantly oversee the robot.
Faster order execution Because the VPS is a fast and stable system with a very fast internet connection you will notice that your orders are executed at the desired price more often than on your home computer. This is one of the side benefits of a VPS, even a trader that trades manually can notice the difference in order execution. For an automated strategy, it has the potential to make the difference between a winning and a losing strategy.
Monitor the performance of your robot from anywhere By logging on your VPS account you can monitor and adjust your trading robot at any time of the day or night, from anyplace even with your mobile phone. This is especially beneficial if you travel often as you won’t have to carry your computer with you to run the robot.
Virtual private servers generally will be also more secure from malicious infections than a home computer. Often times the VPS provider will have effective antivirus software to ensure the stability of the whole system.
Of course, nothing comes free and especially not a good VPS. Depending on what your needs and how important are to you the advantages that a VPS provides, you can choose one of the many available packages to suit your needs and at the same time, with affordable price. Basic packages usually start with a few tens of dollars per month only.
You will find the starter packages with only the basic features, less storage space, and lower performance, while with the advanced packages you will get a full professional and stable VPS service, with huge storage space, lots of RAM and a high bandwidth limit. The VPS can be also a part of your broker's services.
High Risk Warning: Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.
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