Do you know what “VPS” stands for and why it might be relevant to you as a Forex trader? VPS stands for “Virtual Private Server.” Usually when you hear the term, “VPS,” it’s in discussions about webhosting for sites, not in discussions about Forex trading.
A virtual private server may come in handy to you as a trader, however, depending on your method and whether you rely on automated services.
Guest post by Andriy Moraru of EarnForex
A virtual private server is a special type of server which is housed on the same computer as several other virtual private servers—this is why they are termed “virtual.” Despite the fact that they’re all located on one machine, they can operate independently of each other. Given your own VPS, you can install an operating system of your choice on it, have the power to reboot your system, and basically have full control over the server as though it were the only one on the machine. You’re guaranteed a certain amount of space, RAM, and transfer allowance per month. Your VPS has its own dedicated power supply and offers flexibility, stability, and convenience.
So what the heck does this have to do with Forex? Here are five reasons you might want to consider trading on a VPS instead of trading on your own computer directly.
- Trade anywhere. If you have a desktop PC and not a laptop, you’re pretty much stuck trading wherever your computer is housed (your house, your office). While there are alternatives these days, maybe you don’t feel like purchasing a mobile device or a laptop, or maybe your broker doesn’t support mobile trading. Perhaps you just don’t like the interface. Perhaps your broker doesn’t offer an online trading platform and requires a download. In that case, you can connect to your platform from anywhere as long as you have a network connection where you can log onto your VPS to trade, even a hotel or internet café.
- Trade even if your power goes out. If you rely on automation for your trading, you can continue to trade even if your power goes out. If your automated system performs well even without you monitoring it, you can let it continue making money for you even if you can’t get online.
- Trade at any time of day. Since you’re not confined to your desk and you can trade anywhere, and since your system can execute trades even if your computer is off, you can feel more comfortable trading even while you’re asleep.
- Robust security. VPS systems offered by the best companies also come with the best security. Managed VPS servers are checked regularly to make sure that they are functioning, and most companies guarantee 99.9 percent uptime. You also generally receive antivirus and other tools to ensure your system is safe from vulnerabilities.
- Reduce your slippage. This is one way in which a VPS server can benefit you even if you place all your entries manually and don’t use automated trading. A VPS can execute your trades more quickly than your computer can because it is much faster transmitting the orders. The result is that you experience less of a delay and less slippage. As we all know, slippage costs money, sometimes a lot of it, so this is a great way to reduce your losses and unpredictability.
Keep in mind that VPS can be an expensive service, though you probably only need the bare minimum of disk space, so look for something that offers good RAM and adequate transfer allowance. Check out VPS reviews to find the best hosts, and call up customer service to inquire about how many system resources you actually need before you purchase a plan. There’s no reason to spend any more than you have to since this will become a monthly expense for your FX trades if you choose to do it. Is VPS for everyone? Not necessarily; some people will benefit a great deal from using one, while others will only receive a limited benefit in the form of reduced slippage. If you rely on automated trading or you are stuck with limited resources for placing trades (no mobile device, download-only software, etc.), VPS probably makes a lot more sense for you.
You can find the list of VPS services for currency traders here:Get the 5 most predictable currency pairs