What is Forex VPS?
VPS stands for virtual private server. You may imagine it to be a remote computer that you can run your forex robot on it. VPS has many uses and one of it is for forex trading. Forex VPS is a VPS that allows you to do forex trading and run forex robots on it.
Why use VPS for Forex Trading?
Forex VPS are getting more and more popular with forex traders and many successful forex traders use them. It is especially useful for forex traders that make use of forex robots.
Forex robots are required to watch the market for you at all times.
But can it do that?
If you close your forex trading software such MetaTrader…
Or if you turn off your computer…
Your forex robot also stops running!
Does that mean my computer has to be turned on 24 hours a day for my forex robot to work?
Yes, unless you are using a VPS for your forex robot.
With it, you won’t have to worry if your computer hangs or if your internet disconnects.
If you haven’t already used a VPS for forex trading, you are missing out on many exciting benefits that it has to offer.
Benefits of Forex VPS
When a price level is reached and your forex robot closes the order.
Does the order close immediately?
No. Time is required to for the order to be sent to your broker.
This time is called the latency.
Why does this matter?
By the time your order has reached your forex broker, the market price might have changed. Hence, your order might be executed at a worse off price.
Using a Forex VPS might be faster than using your computer. This is especially true if you are located far away from your forex broker.
Forex is a fast moving market. A small delay might cause huge losses especially for scalpers.
Forex VPS are usually well maintained with minimal or no internet connection issues. This will allow your forex robot to run smoothly without facing any network errors.
Forex VPS servers usually comes with high level of protection to shield you from hackers and viruses.
With a Forex VPS server, it would allow you to access your trades anywhere. You are not only limited to your computer at home. If you are using a broker that do not allow mobile trading, you will still be able to access your trades with a Forex VPS.
By turning on your computer 24 hours a day to run a forex robot, you would incur higher electrical bills. VPS allows you to save on those costs. The cost of Forex VPS range from few to hundreds USD per month. Depending on the trading requirements that you need, you will likely be able to find suitable Forex VPS solution.
Increase Your Computer Productivity
Running a forex robot can eat up alot of your bandwidth and it uses up alot of your computer processing power. If you are doing other work on the same computer, you may encounter delays because of that. Furthermore, by turning on your computer all day, you run the risk of computer heating up and the life span of your computer might also be affected. Making use of a Forex VPS would remove those problems. It allows you to be fully productive with your computer.
8 Important Tips on Choosing a Forex VPS
Support from your Forex VPS is very important. If the provider does not have good support, it is advised to stay away from them. Since your forex robot is likely required to run 24 hours a day, it is recommended to look for a Forex VPS with 24/7 technical support. With that, you don’t have to worry that when your server is down and there is no one to help you. It is also advisable to speak to their live support to determine their response time and helpfulness before purchasing anything for the Forex VPS service provider.
Uptime is the time that your server is functioning. When servers are down, the forex robots and EAs do not work. Hence, it is best to choose a server that has a high uptime. Stick with Forex VPS providing at least 99.9% to 100% uptime.
When you run forex robots or EAs at home, it is usually risky if anything happens to your computer or the connection. However, with forex VPS, there datacentres have many servers running. When one server is down, they may automatically switch you to another server. Hence, when that happens, you are not being affected at all. Check with your Forex VPS provider if they provide such a service.
Check with the Forex VPS if the your server is being shared. When using a shared server, your resources are shared with others. This means that if the person you are sharing with uses alot of resources, it may slow down your programs running on that shared server. Look for a independent server for yourself, to prevent such situations from happening.
Ease of setup
Make sure you understand how to setup the forex vps. Read the instructions from your VPS provider, if its not clear, don’t hesitate to speak to their support. Most Forex VPS are very simple to setup and can be done within 5 minutes.
After getting your login information from your VPS provider, the basic setup involves using remote desktop connection to connect directly to Forex VPS.
When using your computer, you are limited to stay at home and monitor your trades. However, with a Forex VPS, you will have access to your trades by using either your phone, tablet or computer. This makes it easy for you to view your trades at anywhere and anytime.
Latency stands for delay. Latency can cause your order to be delayed and executed at a different price. When sending orders, there is a lag time for the order to be sent to the broker server. Hence, the closer your Forex VPS is to the broker servers, the lower the latency. So if your broker is located in the UK, choose a Forex VPS that have datacenters in the UK. This will reduce the latency time.
Specialized in Forex
VPS are servers and you can think of them as computers. There are many VPS providers, however not all at Forex VPS. What is the difference? For a normal VPS, you will have to install all the forex trading systems for example MT4 by yourself. However, with a Forex VPS provider, forex trading softwares like MT4 are preinstalled and they have services cater specially for forex traders. Hence, for the start, I would recommend starting off with a forex VPS if you are only using the VPS for forex trading
Hope this tutorial gave you a quick overview on forex vps. With this basic knowledge on forex vps and knowing how to make full use of them, you can run forex robots 24 hours a day without having your computer on.