Why Do You Need a Forex VPS for Trading?
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Definition of VPS in Forex Trading
Running 24 hours a day, 7 days a week, a Forex VPS allows investors to deploy Expert Advisers (EAs) on a dedicated server. This is independent of one’s computer. Once set up, it will be like using your own PC anywhere you have internet access and a computer or phone. If you use a VPS on your mobile device, ensure your phone is set up correctly. The setup process can be challenging for beginners, yet there are many tutorials on YouTube to assist you with setting up your phone (https://www.youtube.com/watch?v=0c6iwz2eBWI). You will then be able to see your virtual desktop through your mobile device.
A VPS is good for EAs and, in fact, all types of trading, with the peace of mind that everything is on the server. Simply put, a server represents a large computer that, depending on your package, permits you a certain amount of resources. A good VPS provider will also have backup generators and maybe two power supplies in case of a power outage. Of course, however, this will depend on the server company; therefore, research is important before committing to a provider.
Advantages of Using a Forex VPS for Trading
Once the VPS is operational, it can be used anywhere: On a friend's laptop, a connected mobile device, in the office, or at a hotel. This is the primary advantage of a VPS.
The VPS will continue to operate on the server even when your internet connectivity is lost. You will not suffer any loss of data; this is especially useful if trading with EAs as they demand constant Internet connection.
A power outage can be particularly detrimental to one’s trading. Fortunately, a quality VPS will continue to operate void of power. Consequently, when power returns or choosing to log in at another location, it will allow you to continue trading operations.
A VPS is a way to go if strong security is essential. Regular inspections by the server staff help guarantee that their VPS operates correctly and conforms to the finest standards. The provider adds security measures to the servers by installing a quality firewall and antivirus.
The VPS reduces the possibility of slippage. Remember, slippage is the difference between the desired execution price and the price received from your brokerage. Slippage clearly can be costly in entering and exiting positions. The good thing is that the server can process transactions substantially faster than a personal computer, thus often minimizing transaction times and errors.
Investors can conduct their business efficiently around the clock using a secure Forex VPS. The VPS has no time constraints. You can work anywhere and whenever access is available.
How Does a VPS Work?
A suitable VPS will host a compatible operating system that may be managed remotely via a connected device. This method functions similarly to a website hosting server, allowing the storage of website data remotely. In addition to installing and operating software packages independently—as you can on your personal computer—multiple VPS services often function on a single powerful computer (server).
Virtual servers are allotted specific amounts of the hosting computer's central processing unit (CPU) power, random access memory (RAM), internet bandwidth, and hard disk space to ensure that you receive the monthly resources as per your VPS plan. A virtual CPU (VCPU) is a portion of a real CPU that is allocated to a virtual machine (VM). Typically, providers offer Forex VPS services on a monthly basis.
The Cost of Using VPS
VPS fees can range from US$4 to US$50 per month, depending on how it will be used. For example, a basic account should suffice if only one EA is being used. Most VPS service providers offer a selection of options for light and heavy usage. A Forex trader should benefit from a VPS; however, it may be expensive, but the advantages justify the expense, giving investors peace of mind knowing that their data is safe.
How to Get Free VPS?
Numerous websites offer a free VPS, which is usually a free monthly trial. If it's completely free, it could be a scam; as the saying goes, “nothing in life is free”, and it is usually true.
Traders can qualify for a “free” VPS that is offered by several Forex brokers with specific requirements, such as opening a live trading account and making a deposit, or trading a set number of lots per month. Research is vital in order to find a suitable VPS for your trading needs.
Before you begin the signup process, you must decide which resources you will require from your VPS to meet your needs. You can then choose the appropriate plan.
It is often prudent to test the VPS customer service; this could be invaluable if you run into problems in the future. Upon completion of signing up with a VPS provider, go through the set-up process and sign into your VPS. You will then be presented with your virtual desktop, similar to your Windows desktop. Here, you can conduct Internet searches (using Google) and download third-party applications—for example, MetaTrader 4 (MT4) and 5 (MT5) can be downloaded directly to the virtual desktop.
Do you need a VPS? For serious traders using EAs, it is generally recommended as you must maintain an internet connection when trading algorithmically.