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.
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).
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.
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