Forex trading has always been a time sensitive business. Even a few seconds of delay may cost you hundreds of dollars. Whether you trade from home with a personal computer or work with a Forex broker, you must be prepared to address the challenges like latency, slippage, and security. Trades made from home or office computers are more likely to face the challenges like Internet connectivity, power outage, etc. To book the maximum profits from Forex, traders must consider using Forex VPS Hosting for the execution of fast Forex trades. But why VPS hosting for Forex trading is a relevant solution to tackle these problems? This blog post will give you 5 reasons. But first…
What is VPS Forex Hosting?
“VPS hosting, what is this?” is a question that has come to your mind at least once! Unfortunately, there are not many sources explaining in details the Forex VPS term. Thus, we will now discuss what is VPS Forex hosting and how it supports the opening of fast Forex trades and how it helps your trading connectivity.
The VPS Forex hosting is a server solution for expert advisors. The term FX VPS stays for Forex Virtual Private Server. In other words, VPS for Forex guarantees rapid implementation of trades through an ultra high-speed hosting server – a way to minimize trading slippage. Now let’s discuss the top 5 reasons to use VPS server for Forex trading.
1. Flexibility to Trade from Anywhere
With VPS, you can enjoy the flexibility of trading from anywhere. Let’s take a real-life example to demonstrate it.
Imagine you run Metatrader Expert Advisors on your home computer. You’ve set up trades to happen automatically when certain market conditions and pricing levels happen.
What if you are not on your computer desk? Well, an answer is simple, you cannot trade. Yeah, it’s possible to some extent either with the notebooks or laptops, but with a desktop PC there’s no chance.
With VPS, the situation is quite relieving. You can trade from almost anywhere because all you need to trade is PC/laptop and an Internet connection. Just log in to your Forex VPS for MT4, connect to the best Forex software for you and start buying and selling currency!
Forex VPS runs round the clock, enabling you to run trades automatically day and night without exhausting your personal computer. As soon as the correct market condition occurs, automated trading bots trigger the trade.
Unlike desktop PCs, VPS for Forex trading are built on powerful hardware, robust operating system and high-speed internet connection that can work non-stop for a long period of time.
In a nutshell, to host your Forex trading platform, robust solutions like Forex VPS hosting is recommended. After all, your money is at stake, and you don’t want to take a risk.
2. Enjoy Ultra Lowest Latency
Latency is the most crucial factor affecting profit while trading. Well, it may sound bit technical term, but it’s just the speed measurement on which orders are transmitted to trader’s server.
The lowest latency ensures the faster execution of your order to broker’s trading system. Whereas higher latency causes the slippage, as prices are updated very rapidly, and filled order price may get changed at the time it reaches to your broker’s system resulting in the loss.
At this point, you may have a question like, “What’s the role of VPS here?”
Apparently, VPS is the only answer here, because your local computer runs with a latency of around 800 milliseconds whereas the recommended latency is around 200 to 250 milliseconds to make the most orders transmitted smoothly.
VPS hosting for Forex trading transmits your orders faster by using its enhanced processing power, swift Internet speed, and lower latency. The only thing you need to ensure is the geographical distance between your VPS and trading server.
To achieve the maximum performance, you should host your VPS nearest to your involving trading servers. Closer the VPS is to trading server, the lowest the latency will be and there will be less chances of slippages.
Let’s consider an example to have better understanding of this:
You can see that home computer has a high latency of 800 milliseconds to reach the server of a good Forex Broker whereas if you buy the FX VPS nearest to your Broker’s server, the latency is 100 milliseconds.
3. Guaranteed Connectivity
As we know that, an uninterrupted and fastest Internet connectivity has a major role to play in successful trading. Running trading from desktop/laptop with local internet provider may not fulfill this essential requirement.
With VPS hosting for Forex trading, you will have reliable and constant Internet connectivity with 24/7 availability. Forex VPS are equipped with the high-speed port connectivity ranging from 100 Mbps to 10 Gbps, which is way faster than your local Internet connection.
Furthermore, your trades will remain unaffected, no matter whether you have a poor connectivity or it’s completely down. So, instead of running Forex trading locally, VPS is the best suitable option to run your trades uninterrupted, faster and reliable.
4. Reduce Forex Slippage
“What is Forex slippage” is the other question that has come to you at least once. The Forex slippage definition states: Slippage is the difference between the trade order price and the price of the executed order which occurs due to latency. I’ve probably seen that it takes around a second after the click to implement a trade from a standard PC. The price changes during this second and you are taking the risk.
There are many reasons of latency like Internet connection speed, distance from your location to trader server location, etc. SSD VPS hosting for Forex is recommended in trading as it can handle rapid order executions, due to its high internet speed connection and optimize server hardware which leads less slippage. Forex traders just need to look for a VPS configuration with the optimal amount of RAM and SSD disk space to make sure blazing fast execution of orders.
How Does the Forex Slippage Control Affect Trading?
To earn maximum profits, it is necessary to trade the exact order price that you want to trade. But the executed order may be different to that of your desired order due to latency caused by different causes. So you see your price and click to trade, while the click is on process the price changes and your click executes another price. This is slippage, and it has a great impact of your Forex trading capital.
How Can VPS Hosting for Forex Trading Help in Reducing Slippage?
SSD VPS hosting is recommended for Forex trading as it can handle rapid order executions, due to its high internet speed connection and optimize server hardware leading to less slippage. Forex traders just need to look for a VPS configuration with the optimal amount of RAM and SSD disk space to extract the fastest possible order execution in Forex.
5. Easy Resource Upgrade
While running VPS Forex trading, you can assign guaranteed resources like disk space, RAM, CPU to your favorite Forex software and Expert Advisors.
With a single virtual CPU and 1 GB of RAM, you can easily run 2 to 3 Forex instances. To run more instances, you can simply upgrade your Forex VPS resources as per your requirement, without affecting the existing settings and data. Thus, you can enhance the performance of your existing profitable EA, by upgrading your VPS with just a single reboot.
Many VPS providers offer Fully Managed VPS, where they continuously monitor your VPS resource usage. If any of the VPS resource usages goes high, the VPS provider will notify you, and you can upgrade resources.
While you are running a Forex business, you cannot afford downtime, error, or any security threats. VPS helps you run your Forex business securely, continuously, efficiently, and automatically.
By investing in a Forex VPS, there is a little-to-no delay in the transaction, so traders are more likely of placing the bid they want at the exact moment they want. To achieve the financial success in Forex trading, you should always count on VPS Forex hosting.
If you want to share your experience with Forex VPS, or you know any other benefit of running Forex trading on VPS, please share with us in the comment section.
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