If you’re thinking of getting into forex trading, then you should know how to make the most out of your experience as a new trader. It’s important to learn and set up trading strategies, as well as make sure you use the right tools such as a VPS.
A virtual private server (VPS) hosting can improve your trading speed and reduce annoying interruptions. In this article, you’ll learn what a VPS for forex trading is and five features to look for when choosing the right provider.
What is forex VPS?
A VPS is a virtual machine running its own copy of an operating system, and it’s hosted on a physical server. When you purchase a VPS forex hosting plan, you also get isolation from other users and dedicated resources (storage, CPU, RAM, etc.) to host all your trading activity, software, and tools.
A VPS allows traders to run their trading platforms and automated trading systems 24/7 on a remote server. The main benefits of VPS forex hosting are fewer interruptions due to power outages or internet connectivity issues and faster trading due to reduced latency.
Five key features to look for in a Forex VPS provider
- Low latency and high speed
Network latency depends on how close you or your broker are to a server. That’s why you should look for VPS hosting providers that offer servers across the world with locations near you or your forex broker.
Look for network speeds of at least 1 Gbps and ping times under 10ms to major forex centers.
- Reliability and uptime
The forex market operates 24/5, so your VPS needs to be consistently available. If you can’t rely on your VPS provider to access your trading activities whenever you want, you might lose great opportunities. Look for service providers offering 99.9% or higher uptime guarantees, redundant power supplies, and multiple internet connections.
- Compatibility with trading platforms
To trade forex, you need to use the right trading platforms. Look for VPS hosting services that support popular platforms like MetaTrader 4/5, cTrader, and custom algorithmic trading solutions.
- Security Measures
Although hosting your forex trading activities on a private server is safer than on a public one, you still need to find a provider that protects your trading account and sensitive financial information from cyber threats. Look for DDoS protection, regular security updates, firewalls, and data encryption.
- Scalability
If you’re just starting out in forex, chances are you’ll want to expand in the future. For that, you might need to install more tools and additional software to trade more efficiently. The VPS provider of your choice should offer scalable plans. Look for easy upgrade options for RAM, CPU, and storage, as well as the ability to run multiple accounts.
