What Is Forex VPS? How Does VPS Support Forex Traders?

A Virtual Private Server (VPS) is a virtual machine that operates independently, much like a real computer. Due to the protection and versatility it offers, a VPS is specifically configured according to your needs and is particularly beneficial to Forex traders.

Key Takeaways

✔ Automated Forex trading helps retail investors to get away from manual trades, which can be inconvenient in today’s market.

✔ Expert Advisors review technical Forex charts and statistics, and monitor news and market data, using them to assess what orders to place.

✔ Forex VPS allows traders to install their expert advisors on a dedicated server that will be running 24/7 without disruptions and is separate from the trader computers.

✔ The main problems solved for traders by VPS hosting are connection drops and power outages, equipment failure, and system errors.

✔ A VPS can perform your transactions more efficiently than your computer because the delivery of orders is much quicker.

✔ The only solution that ensures that your machine is always connected to the high-speed internet is VPS, which improves the process of execution and leads to a safer and securer trading environment.

What Does Forex Mean?

Forex is short for Foreign Exchange, a network of buyers and sellers who trade international currencies as well as cryptocurrencies directly among themselves. Of course, you can also trade gold on Forex markets, and even silver — but mostly Forex is about currency pairs.

The forex market is where many big companies try to hedge their risks through trading currencies via spot, forwards, or futures contracts. It is where most currency exchange in the world happens. And there are investors and traders who are trying to make a profit on the movements of the market.

Among traders pursuing profit in Forex, there are major companies and funds, as well as a very large number of smaller traders and individuals who do this professionally. These retail Forex traders either have expensive dedicated computers for doing their trades or use cheaper VPS solutions for their reliability and stability.

Automated Forex Trading

A new form of Forex trading has emerged in the last decade. Enabled by the Internet, along with the increasing use of computers and mobile phones, inter-bank and retail foreign exchange markets have been dominated by electronic trading. Along with e-Forex trading, automated Forex trading goes on.

Using freely-available retail Forex platforms, ordinary individuals and small companies can trade Forex. But it needs professional knowledge and can be time-consuming to track the markets and collect information on which trading decisions are based. Automated trading allows individuals with little time or experience to engage in the forex market.

A computer, an Internet connection, and an automated Forex trading algorithm (also known as a Forex robot) are all that are required for automated Forex trading.

It is possible to download standard algorithms with varying degrees of complexity from the Internet, but experienced traders may prefer using a standard scripting language such as MQL to create their algorithms.

Automated trading algorithms (or Expert Advisors) usually simulate what an expert human trader would do. Technical Forex charts and figures are analyzed and news and market information tracked and used to determine what orders should be put.

But they’re going beyond just offering advice. The algorithm itself decides the strategy of trading and conducts the trades. Automated Forex trading is also known as Algorithmic Trading for this reason.

What is VPS? How Does VPS Work?

A VPS or Virtual Private Server, as its name suggests, is a virtual machine (VM) acting as a server on the internet.

A VPS can host a version of an operating system that can be remotely controlled from essentially any other device that can be reached. This is somewhat similar to web hosting servers that contain all the data of a particular website that can be displayed from either internet-connected desktops or laptops, except that a VPS can directly host a desktop computer.

Although several VPSs are created on one computer, they can function independently of each other. A certain amount of CPU power, space, RAM, and transfer allocation is guaranteed for you every month. In short, a VPS is a cloud-based desktop PC.

There are many uses for a VPS, particularly for organizations and individuals who need to remotely access their computers instead of having to carry the devices wherever they go. In order to connect to a Forex VPS, you need an RDP. A Remote Desktop Protocol is a solution that connects two remotely distanced devices. You connect to your VPS from your computer through an RDP. A simple and user-friendly solution is to set up a Chrome Remote Desktop for your forex VPS. It is a free solution that doesn’t require you to be a tech-savvy in order to work with it.

Forex VPS Hosting

Traders use VPS as a reliable computer for trading, with advantages such as speed, lower latency, safety, and security. And if you’re doing automated trading, you can use your Forex VPS to set up your Expert Advisors (EAs) on MT4 and let them run uninterrupted.

There are cheap Forex VPS hosting services that offer VPS specially adapted to Forex trading. The best Forex VPS would ensure at least 99.9% uptime, secure remote desktop connections, high-speed 1Gbps servers with enough CPU cores, RAM, and fast storage to run the trading software.

READ

Best Forex VPS Provider 2022 [Top 15 VPS for Forex Trading]

In Forex Trading, How Does VPS Work?

Challenges such as computer viruses, connection failures, and power cuts, particularly during periods of market fluctuation, can be harmful to trade.
These problems can be solved by using a VPS, making it an ideal technical setting for automated trading. It is the only solution that ensures your computer is always connected to high-speed internet, which makes the execution process easier and creates a safer and better trading environment.
Because everything is virtualized with VPS, you don’t have to worry about traditional hardware problems that would otherwise impede trading.
Traders can conduct automatic trading techniques smoothly thanks to VPS without having to think about high latency. Forex traders now have more secure access to their customers and applications for MetaTrader 4 (MT4).

Advantages of Forex Trading with VPS?

• Trade anywhere: Working on tasks may be restricted to the place where your computer is located, as with anyone with a desktop PC and not a laptop. Alternatives exist, but you might not feel like buying a handheld smartphone or a laptop, or your broker might not accept mobile trading.  Or maybe you don’t like the interface. In that case, you can connect to the platform from anywhere as long as you have a network connection, even in a hotel or cafe, to log on to your VPS to trade.

• Strong security: The best security also comes with VPS systems sold by the best providers. Managed VPS servers are periodically tested to make sure they are running, and 99.9 percent uptime is assured for most enterprises. Generally, you also get antivirus and other applications to guarantee that the device is safe from bugs.

• Trade during power loss: In case your power goes out, you will continue to trade if you rely on automation for your trading. When your automatic machine does well even without you monitoring it, even if you can’t get online, you can let it continue to make money for you.

• Trading while asleep: Since you are not bound to your desk, you can trade everywhere. Even when your device is off, your system can start trading. You can experience more relaxed trading even while asleep.

• Reduced breakage and quicker completion of the trade: This is one way that you can benefit from a VPS server, even though you manually place all your entries and do not use automatic trading. A VPS can perform your transactions more efficiently than your computer because the delivery of orders is much quicker.

The result is that you experience less slippage and less delay. Slippage costs money, sometimes a lot. This is a perfect way to decrease losses and unpredictability.
By using a VPS in the same location as your broker, you can also open and close transactions quicker than would normally be possible. Note that a VPS is useful when you rely on software to trade on your behalf or handle your trades. Make sure you choose one in a location that is closest to your broker before going ahead with paying for the VPS service.

Forex VPS Services by Cloudzy

You need a stable system with a very fast Internet connection that is online 24/7, to log data and do auto trading. But it is not very easy to keep your computer operating 24/7 at home.
The cost of electricity, power outages, Internet latency, hardware failures, trade distance, all make your home or workplace not suitable to run a Forex Trading platform. But here’s a solution for you. At Cloudzy, for a very small fee, we offer Forex VPS hosting with great uptime and great network speed in several different locations.
The most popular trading app for Forex trading is MT4. Here at Cloudzy, we did a comprehensive research on the right Windows to run MT4 on it. We suggest that you only use Windows Server 2008R2 or Windows 7 to set up MT4.
If you run it on any of the following Windows devices (including Windows Server 2019, Windows Server 2016, Windows Server 2012R2, Windows 10), the machine will respond too slowly and use a lot of CPU power. Our VPS servers also have ultra-low latency and high forex trading execution speed.
We provide VPS servers in New York, London, and Singapore, among several others, and also you can choose between different trading operating systems.
For Forex traders, New York is very enticing, since most Forex brokers are based right in New York City, giving them the benefit of very low latency to their broker, and executing orders in just milliseconds.
Europe VPS is situated in the busiest city in Europe with several companies linking the east and west together, and Singapore is our first Asian spot to get a great VPS deal, which comes with Windows or Linux.

Conclusion

Automated Forex trading is a foreign currency trading method relying on a computer program, that helps decide whether to purchase or sell a currency pair at a given time. Expert advisors review technical Forex charts and statistics and monitor news and market data, using them to assess what orders to place automatically.
Forex VPS allows traders to install their EA software on a dedicated server that operates 24/7 without interruptions and is separate from the computer of the trader. The main problems solved for traders by VPS hosting are latency, Internet and power outages, hardware failures, and device errors.
Since the execution of orders is much easier, a VPS can handle the transactions more effectively than your computer. The only solution that guarantees that your computer is always linked to high-speed internet is VPS, which makes the execution process simpler and leads to a smoother and more secure trading environment.

Note: You can download the PDF version of this article by clicking on the button: