VPS for Forex Trading
What is VPS?
VPS or Virtual Private Server is a hosting service that provides you private resources on a server with multiple users using virtualization technology. VPS can also be regarded as a virtual computer that functions independently like a real computer. VPS is better than shared hosting as it is more secure and stable and the users get a private server space.
VPS for Forex:
VPS for trading forex helps you keep trading terminals permanently connected to the wider trading network. Sometimes when there is connection error or any system glitch you lose the ability to open the trade, close it or make changes in it. VPS hosting keeps you connected and lets you keep trading. This also gives you the sense of safety and security against any unforeseen failure in the system.
How does VPS in Forex Trading work?
A VPS can host any version of the operating system which is basically connected locally to any server within its reach. In forex trading VPS acts as SaaS and a trader pays for the software monthly as a subscription cost for accessing the VPS hosting service from the provider.
Benefits of using VPS hosting service:
The main and essential benefit of using VPS hosting is that it provides permanent internet connection along with high execution speed. A VPS hosting increases the speed of the CPU by 20% as they have more RAM that is available to run parallel and minimizes the spike usage from other clients who are on the same server.
1. Reduce slippage by improving latency: Using VPS hosting increases the execution speed of the order and reduces the chances of slippage. As delay or latency is counted in milliseconds and the forex market being highly volatile, milliseconds count. VPS gives the connection that improves the latency by keeping the computer servers closer to the exchange physically.
2. Create backups: VPS hosting in forex creates back-ups of all your trading configuration which includes trading software and operating system. VPS provides a back-up if in any case the network is broken and you will be able to carry out any trade without missing it.
Things to consider while buying any VPS hosting service:
1. Safety: VPS hosting should provide your data and network security (Firewalls included in reasonable pricing)
2. Support: VPS hosting should provide good technical support.
3. Flexibility: The VPS hosting should be compatible with your trading platform. This should be checked before buying it.
4. Minimal Latency: The VPS hosting should give high execution speed and reduce the latency.
There are many forex brokers that also provide VPS hosting service on their platform.
Many of these brokers even offer free VPS service if you have a slightly bigger account, however, no matter the size of the account, all traders are recommended to make use of the VPS service because of its huge number of advantages.
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