What is a Forex Virtual Private Server (VPS)

VPS is a topic that you may be interested in if you use Expert Advisors and Automated Trading. VPS have many advantages in both execution of orders and uptime of your systems. In this article we will see what is a Forex Virtual Private Server (in short VPS) and how it can help your trading activities.

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What is a Virtual Private Server (VPS)

VPS stands for Virtual Private Server, if we look at the words we can easily understand what it is:

  • Server, is a server system, a computer with server functions
  • Private, because it is private, which means only you can access it
  • Virtual, well, it is virtual, so it is actually not phisical, it is like a software

So a Virtual Private Server is a virtual server operating system that only you can access and use. You can create your own virtual private server at home if you have a spare computer with some good hardware. When we talk about Virtual Private Server in a bigger environment we mean a VPS hosted by some other company.

What basically happens is, a company has hardware and network connectivity and you can buy the use of one or more VPS, so you pay for a service. The majority of the companies will allow you to tailor the characteristics of your server to your needs, so you can decide how many core to use, how much memory and storage and so on.

VPS is a great service that can save you money and time!

What is a Forex VPS

A Forex VPS is a Virtual Private Server that is used for a Forex trading purpose. VPS are indicated in Forex trading when you want to run automated trading using Expert Advisors or Trading Signals Providers.

What you do is installing your trading software, MetaTrader4 or anything else you use, on a VPS and let it run all day, and night, every day.

Many Brokers offer VPS to their clients, sometimes as paid service and other times free of charge if the trader meets some trading requirements.

Usign a VPS to trade Forex has many advantages and some disadvantages as you can see in the following sections.

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Advantages of using a VPS in Forex

Having a Forex VPS in your tools will give you many advantages, we can see some of them here.

  • Save money in hardware, you won’t need to buy any heavy server, the VPS host has it covered
  • Save money in licensing, you won’t need to pay the license for the operating system, the VPS host has it covered
  • Save money in maintenance, the VPS host will look after the maintenance required to keep your server up and running
  • 24/7 Uptime and Reliable connectivity, VPS are designed to be online 24/7 and the VPS host usually guarantees and uptime above 99% of the time
  • Faster orders and response time, VPS host usually are located in datacentres close to the brokers or together with the brokers, they also have fast network connectivity, resulting in faster speed and response
  • High performances, VPS usually have performances above a normal personal computer, you can also customize and add resource if needed
  • Accessible from everywhere, you can access your Virtual Private Server from basically everywhere, you just need a computer and a network connection.

As you can see the advantages are many and significant.

Disadvantages of using a VPS in Forex

Unfortunately using a VPS has also some disadvantages, we can see between them:

  • Paid service, VPS is a paid service, so even if you are saving costs in hardware, licensing and maintenance you will have to pay for the service
  • Not always customizable, some brokers and some VPS hosts do not offer many customizations for your VPS, especially in terms of storage

Conclusion

A Forex Virtual Private Server is a virtual server offered by a VPS that you can use for your trading activities. VPS brings with them many advantages such as cost saving and time spent in maintenance, they are more reliable and designed to be online 24 hours a day 7 days a week, they also have some minor disadvantage. VPS are definitely a must have for traders wanting to use Expert Advisors and Trading Signal Providers.

 

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2 thoughts on “What is a Forex Virtual Private Server (VPS)”

    • That is not correct, The VPS is only a virtual computer always connected to the internet, 24×7, it is not a robot itself.
      You can install Metatrader on it and then run robots.

      Reply

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