VPS is a virtual dedicated server with installed OS servers. Usually, it is Windows Server. Without going into technical details, a VPS is a remote server computer located in a data center.

Why Do You Need a Remote VPS Server?

If we consider only the sphere of online trading, a virtual server is necessary for traders who use algorithmic systems (expert advisors in MT4/MT5) and for whom the speed of access to the markets (low ping) and the possibility of round-the-clock work are important. Also, a VPS-server is necessary if trailing stops are used in a trader’s strategy (in MT4 and MT5 terminals, trailing stops work only when the terminal is running).

Advantages of Using a VPS-Server:

  • Constant power supply. VPS server is autonomous and will always work even if the server goes down for any reason. Backup power sources will be used, including, if necessary, diesel or gasoline generators.
  • Insurance against problems with Internet access. With VPS, you will not have to worry about losing your connection to your ISP or having problems with Wi-Fi.
  • Insurance against software problems and overloads. Traders won’t have to worry about their computers being overloaded with programs, games, or other software. Besides, if you are going to use EA around the clock or put several trading robots without a VPS, it will be extremely difficult.
  • Insurance against third-party interference. You will always be sure that no one will touch your trading terminal, but you will. You will be insured against accidental unwanted interference, viruses, and personal data loss.
  • Technical capabilities, security, and manageability. Isolated file system, administrative rights, dedicated IP address, routing tables, and DNS.
  • Mobility. Quick access to your trading terminal from anywhere in the world where there is more or less stable internet.

Why Use a VPS Server Instead of a Laptop at Home?

That’s a great question. Of course, everything can be set up on your PC except low ping. However, low ping is already a pretty important part of an effective trading strategy when it comes to order execution speed. But if you plan to use the bot around the clock, it is advisable to upload it to a VPS server together with your trading terminal.

This way, traders are protected from the above-mentioned problems that can hinder and reduce the efficiency of trading decisions. In addition, many brokers provide VPS server services for free, albeit on their own terms.

What Exactly Are These Conditions?

  • The minimum deposit size (or free funds on the account).
  • Monthly trading turnover.
  • Both deposit size and trading turnover.
  • Own tariff plans.

Top VPS Servers

Many forex companies host their servers in the Equinix NY4 data center in New York, which houses over 60 exchanges, over 150 financial service providers, many liquidity providers, and bandwidth options. The second most popular data center is located in London – LD5 IBX. Both data centers are considered ultra-reliable and secure and allow financial market participants to save time by guaranteeing ultra-high speed of order execution.

Conclusion

VPS servers can be an important component of your trading strategy, but in practice, all indications are that such technologies are essential for experienced traders. The effectiveness of using trading bots and Expert Advisors, as well as the importance of low ping for fast order execution and constant market access, can increase significantly when using VPS servers. However, when trading independently, with a focus on other components of trading such as leverage and low spreads, as well as stable internet and a relatively average pace of life, the use of a VPS server is not mandatory.