While discretionary trading, or manual trading, is employed by many traders in today’s markets, a marked shift towards automated trading systems has been seen.
Whether a trader focuses on an individual financial instrument or several markets (think the Forex market [Forex trading], cryptocurrencies, and commodities, for example), a major appeal to automated trading systems is the removal of emotion, a factor often hampering performance. Other distinct advantages are speed and accuracy.
As traders, we’re always seeking ways to improve our trading environment. This is where a VPS could lend a helping hand.
What is VPS?
A VPS is a Virtual Private Server.
To understand what a VPS is, recognising where it fits within the web hosting environment is necessary.
The most common arrangement in web hosting is referred to as shared hosting. This is a physical server shared between different customers. By far, it is the most economical option and is considered the entry-level of hosting. Websites share the key resources of the server, with each typically having a limit on the total amount of server resources available, such as CPU, RAM, and disk space. Basically, shared hosting provides a one-size-fits-all low-cost type of hosting for beginners, though is restricted due to the low level of customisation.
At the other end of the spectrum, we have what’s known as dedicated server hosting. Here, an individual customer gains access to an entire server. Clients maintain complete control over the machine, allowing freedom to optimise to their unique requirements, though comes with a hefty price tag.
Between the aforesaid hosting services, a hybrid approach also exists, balancing the advantages of shared hosting and dedicated hosting: a VPS. The setup of a VPS applies virtualization technologies to virtual machines, or virtual private servers, within a dedicated server. Each unit runs an isolated operating system, such as Linux. A VPS essentially delivers the power of dedicated hosting, at a fraction of the cost.
Initially, particularly for newer retail investor accounts, the idea of working with a VPS provider is perhaps daunting. Fortunately, the setup is straightforward, with many Forex brokers offering a VPS service. With FP Market’s VPS hosting for Metatrader 4 (MT4) and Metatrader 5 (MT5) trading platforms, Forex traders can run automated algorithmic strategies, including EAs (Expert Advisors), and minimise concern regarding downtime. If you’ve just started trading Forex or CFDs, FP Markets can sponsor a VPS plan for you. If you make a minimum deposit of 1000 USD or equivalent, we will continue sponsoring the VPS if you meet the required volume per month (trade over 10 lots on a Standard trading account, or 20 lots on our Raw account).
How Can a VPS Service Improve Your Trading?
Once a trader has made the decision to work with a VPS, an IP address is provided, together with a username and password. After entering the login details, access to a virtual desktop is granted. It is here, traders can download trading software and upload EAs.
- A VPS is particularly useful for traders who employ automated trading strategies. The obvious benefit here is a VPS runs 24/7. You are free to operate trading systems without the worry of power outages, internet connection issues, or bandwidth problems. Most reputable providers also guarantee high uptime.
- Low Latency. A professional data center means speeds are likely to be faster than your home broadband, with execution speed measured in milliseconds. FP Markets have partnered with a service provider located close to the MT4 servers to ensure lightning-speed trade execution.
- Another major way a VPS can improve your trading experience is it provides access to a complete virtual Windows desktop, with the ability to be accessed from anywhere in the world, allowing traders to maintain connectivity with their trades at all times. Traders can also access their VPS systems on mobile devices, providing a high degree of flexibility.
- Reduce Power Bills. Turn off all your devices when not in use and still have all your automated trading strategies executed.
- VPS hosting enhances systemic security in trading. Since servers are monitored continuously by a dedicated community, all network upkeep activities and antivirus installations are constantly updated – fewer chances of system errors.
- A VPS saves disk space – you only need to download a shortcut to your VPS.
Disclaimer: The information contained in this material is intended for general advice only. It does not take into account your investment objectives, financial situation, or particular needs. FP Markets has made every effort to ensure the accuracy of the information as at the date of publication. FP Markets does not give any warranty or representation as to the material. Examples included in this material are for illustrative purposes only. To the extent permitted by law, FP Markets and its employees shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided in or omitted from this material. Features of the FP Markets products including applicable fees and charges are outlined in the Product Disclosure Statements available from FP Markets website, www.fpmarkets.com, and should be considered before deciding to deal with those products. Derivatives can be high risk; losses can exceed your initial payment. FP Markets recommends that you seek independent investment advice. First Prudential Markets Pty Ltd trading as FP Markets ABN 16 112 600 281, Australian Financial Services License Number 286354.