A VPS (Virtual Private Server) is a type of web hosting. It enables the businesses to locate the physical hardware to offer a direct ISP connection by using data center facilities. It also offers professional computer servers or data centers facilities for trading entities for the hosting purpose of their business software for full-day operations.

The VPS hosting is designed to improve both worlds, the most advantageous factor of dedicated hosting and shared hosting services, placing the website on the server in which other sites are also running. The only difference is that there are some sites for each server. For the compartmentalization of a VPS center, virtualization technology is used. 

All the sites carry the cost of running an expert or annual server, which costs significantly less than a dedicated hosting site.

The VPSs (virtual private servers) are not like shared hosting in that your website will not share the resources with the neighboring websites. All the websites have a partitioned server with their own operating system, data transfer limit, RAM, and storage, thus provide a stable and smoother performance of the websites.

Also read, Reasons to Use Dedicated Trading Server.

How Does FOREX VPS Server Work?

The institutional traders pay a high amount to place their trading engines close to the proximity to the trading engines where their news trades are derived. Most of the retail traders can’t pay a fee, which institutional traders pay. It is the reason why the demand for the Forex VPS services has been increased providing the access to equal facilities of recent times for 24-hour trading at low costs as compared to the co-located facility. Retail traders are also taking advantage of the hosting site that provides the required accuracy, stability, and speed for the trading software used nowadays.

The standard setup for a trader will be to run and trade, usually MT4, with a local computer connected to the Internet for the trading station. An EA (expert advisor) connected to the computer of the trader, needs the internet connection for trading. Through VPS, the Forex VPS Server ignores the trader’s connection to the internet, setting up a Forex VPS Server for the data relay and trading orders on the MT4 server of the broker.

MT4 (MetaTrader 4) is the most commonly used electronic trading platform by retail forex traders. It is a licensed software to forex brokers who offer software to the clients in return. It is used for live streaming prices and charts and handle accounts and executing trades.

Alternatives to MT4 including cTrades and Protrader

1. The web trading platform of cTraders is similar to the desktop application. It comes with several features, in which the trading experience is considered most superior to MetaTrader 4. Mostly small FX/CFD brokers use cTrader.
2. Protraders is an alternative to MetaTrader 4 for banking institutions and multi-asset brokers. With this, the brokers can have sufficient scope for customization to meet the operational needs of the broker and clients as well.

Most probably, the MT4 is the most commonly used platform, but due to unusual updates and instability, other platforms are getting fame, especially as traders become more specific to the needs of the platform.

Also read, VPS for traders and its benefits.

Why is FOREX VPS Server Right For You?

Reasons to consider trading VPS rather than on the computer consist of:

1. It enables you to connect to the platform from anywhere through a network connection, consisting of internet cafes enabling you to trade anytime, anywhere.
2. The trading can continue despite the power interruption while automated trading, which is especially helpful when monitoring is not required for an automated system.
3. It is helpful to execute trades even when your computer is off.
4. The VPS systems offer extremely strong security levels with managed VPS servers being most commonly checked to make sure that they are operating with several service providers with a 99.9% uptime guarantee, with software and antivirus are also offered to make sure that the system is enough safe as possible.
5. A VPS can run all the trades faster than your computer as it is quite fast to transmit orders, minimizing slippage and delays. Slippage increases unpredictability and losses.

Key Considerations in Selecting a Forex VPS Server

1. Performance: Several FX VPS uses virtualization technology, which allows the foreign FX VPS service provider to segregate and distribute their resources across multiple clients. The problem as a user with a high workload can affect the performance of the compartments of other users. Less speed and uptime may cause to increase the latency.
2. Hyper-V technology is for the clients on FX VPS running on Microsoft Windows Servers, with OpenVZ as a user to run on Linux, these being just 2 configurations to make sure the stability of the required degree of operation.
3. Hosting Plan Flexibility: There must be many plans available to enable the traders to choose to meet individual requirements.
4. VPS/Broker Server Location: It is quite significant to choose an FX VPS that is located with the broker server. In fact, it can be the most significant consideration.
5. Uptime: The VPS must have to offer 99.99% uptime as a minimum that needs a VPS provider to have a noteworthy redundancy in the system. it allows the VPS service provider to have the required system resources to shift the users to other compartments efficiently if there is a downtime in a specific compartment.
6. Accept Several Applications: The FX VPS service providers need to accept all the kinds of FX applications and software as well as allowing the users to improve the software as and when needed.

The payments systems consist of WebMoney, PayPal, Skrill, Payza, Bitcoin, and debit/credit card. PayPal is the most frequently used payment system among the above-mentioned service providers.

The VPS (virtual private server) is surely not for everyone, but for automated trades or with limited resources to place the trades, the forex VPS server can be the best choice for you.

Also read, What is FxVPS Hosting?