CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 62% of retail investor accounts lose money when trading CFDs with this provider.

You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Please be advised that our Client Portal is scheduled for essential maintenance this weekend from market close on Friday 5th April, 2024, and should be back up and running before markets open on Sunday 7th April, 2024.

We’re excited to share that we’re gearing up for an update to our Client Portal, aimed at improving your experience with us. Client Portal will be unavailable to you from market close on Friday 16th February, 2024, and should be back up and running before markets open on Sunday 18th February, 2024.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 62% of retail investor accounts lose money when trading CFDs with this provider.

You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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What is Forex VPS and How to Use a VPS for Forex Trading

In this post, we exploring what a VPS is and how to use one. The advantages of a VPS should be clear to a trader and are a useful investment.
Asian Businessman sitting and using computer laptop showing trading graph

What is a Forex VPS


A Forex VPS, or Virtual Private Server, acts as an instant bridge connecting your trading device to the wider trading network. It acts as a form of protection for traders against unforeseen circumstances that may disconnect them from the server.

This is especially valuable when a trader may be working from a home computer. If there was an error with the computer, a power outage or loss of internet connection for whatever reason,  a trader may be left vulnerable. In the fast-moving FX markets, any small amount of time can be crucial, and a trader being unable to open or close positions for even a few minutes could have massive consequences. The Forex VPS keeps a trader permanently connected to the trading server, minimising the risk they undertake when trading.

Specifically, a VPS is a virtual machine that is hosted on a physical server. It operates independently, just like a dedicated server, but multiple VPS instances can run on a single physical server. Each VPS has its own resources, like CPU, RAM, and storage. Crucially, this ensures that your trading activities are not affected by the performance of other users on the same server.


Reasons to Use a Forex VPS


Arguably the most important reason to use a forex VPS is for increased execution speeds and reliability. As traders will know, the forex markets move at rapid rates, and even a matter of seconds can make the difference in successful trading. A Forex VPS ensures the fastest speeds possible when opening and closing positions while also being more reliable. This is achieved as the VPS servers are optimised for trading and do not rely on a normal internet connection, so delays and slippages are reduced. This can give traders even the slightest of advantages in the market, ensuring that their trades are executed at the desired price, even during volatile market conditions.

Another key but linked advantage of a Forex VPS is its ability to keep the user connected to the markets constantly. This allows the user to trade whenever they want and limits their vulnerability to unanticipated events such as internet connection losses or power outages. Your trading terminal is hosted on a server that runs 24/7, meaning you can place trades at any time, even when your personal devices are turned off. This helps with trader confidence when opening and closing positions.

As with any form of business, security is a key concern when trading. Sensitive financial information must be protected at all times, and Forex VPS providers employ robust security measures to protect your data and transactions. Traders can have peace of mind with the firewalls, encryption and regular security updates provided, protecting their investments.

Nowadays, many traders like to use automated trading strategies to optimise their returns. Forex VPS servers are ideal for hosting trading bots, expert advisors and algorithmic systems. These automated tools can be used to execute trades based on pre-defined criteria, even if the user is not interacting with the markets themselves. These increase efficiency and potentially provide better results.

Forex VPS services often also come with scalability options. You can choose the level of resources that suit your trading needs, making it easy to adapt as your trading volume grows. This flexibility ensures that your VPS remains cost-effective, no matter the scale of your trading operations.

An often-underrated advantage of using a Forex VPS is the geographical freedom it can provide. It eliminates the need to be physically present in a specific location to trade. This means users can trade no matter if they are in the office, at home or on holiday on the other side of the world. Only an internet connection is needed.


How to Choose the Best Forex VPS for You


Choosing the best Forex VPS for your trading needs is crucial in determining your trading success. To make an informed choice consider the following points.


Consider Hardware Requirements


Every trading application comes with specific system requirements, and ensuring that your chosen VPS meets these requirements is key for seamless platform functionality. Keep in mind that the volume of trades you plan to execute directly correlates with the hardware resources you’ll need. To ensure excellent performance and rapid trade execution, allocate additional overhead resources.


Different VPS Options


There are many VPS solutions out there that give traders different options depending on their needs. A key aspect is the choice between managed and self-managed virtual private servers which will be compared below:

  • Managed VPS: Choosing a managed VPS means your hosting provider takes care of the initial virtual machine configuration. This option reduces your administrative burden but is usually more expensive. Traders should also contact the hosting provider to check if they support Forex trading on their managed VPS.
  • Self-Managed VPS: Self-managed VPS solutions are typically more cost-effective but require a higher degree of technical knowledge. Some companies offer pre-set configurations, but often the trader is responsible for having the correct setup and security of the server. This option grants traders greater control over the server’s customization.


Points to Consider When Choosing a VPS Platform


Once OS and hardware requirements have been considered, the trader must consider a range of factors when selecting their VPS provider. There are multiple trading applications that work with different brokers, each with its unique set of commissions and trading conditions. Start by identifying the broker you’ll work with, understanding the commissions involved, and clarifying the conditions under which you’ll be trading.

Once you’ve selected a trading application, it’s imperative to assess the compatibility with your chosen VPS. This compatibility hinges on the operating system (OS) the trading application requires, making it a crucial factor in your VPS selection process.

A trader should also look into the infrastructure supporting the VPS services, checking if it has high levels of reliability and performance. This is vital for reducing the risk undertaken by traders when opening and closing positions.

The geographical location of the data centre housing the VPS can impact the execution speed of trades. Opt for a VPS provider with data centres close to your broker’s server for minimal latency, impacting trading the least.

Explore customer reviews, and seek feedback from existing and previous users to gauge the reliability and satisfaction levels the VPS provider is delivering.

An often-underrated aspect of VPS providers is their level of customer support. A trader should evaluate the responsiveness and effectiveness of the provider’s customer support team. Quick assistance can be crucial during critical trading moments and if the servers do have issues.


How to Install Your Trading Platform on Your Forex VPS


Once you have chosen and prepared your Forex VPS,  the next step is to install the online trading platform you use. MetaTrader 4 (MT4) is the most popular trading platform due to its abundance of features and its level of reliability. The 2005-founded company will be the focus of our installation, but other trading platforms will involve a similar process.

Some forex providers will provide a service of pre-configuration setups with MT4 and occasionally other trading platforms, allowing users to skip this installation process. However, if your chosen VPS does not, the simple steps below will get you ready for trading in no time.


Connect to Your VPS via RDP


The first step is to connect to your VPS, which will be Windows-based, via a Remote Desktop Protocol (RDP). This is supported by Windows, so is easy for those traders using their own PCs. To initiate RDP, simply access the Start menu and search for “remote desktop.” The Windows client will promptly appear as a suggestion, easing the process.

When the client is launched,  it will request the server’s IP address and login details, which will all be provided in an email by the server provider. Once you have entered the details, you will be connected to your VPS and have access to it on your desktop.


Download and Install Your Trading Platform (MT4)


Once the remote connection to your VPS has been established, you are free to download and install the trading platform you use. Brokers will often provide the MT4 installer, but if they do not, it can easily be found on  MT4’s website.

Ensure you select the correct platform (in this case, Windows) before proceeding with the download and running the installer. MT4’s installer will then initiate the installation process, with the trading platform ready for use soon.


Configure Your Forex Robots


A key advantage of using a forex VPS that we have not yet delved into detail on is the ability to run forex robots or Expert Advisors (EAs). It is possible to create and customise one’s own robots that can be altered to their own specific trading style. However, this option requires not only vast trading experience but also coding skills.

If this option is not viable to you, there is an expansive marketplace already within MT4 that offers many different pre-designed trading robots. Depending on your needs, these can come at different costs, from premium robots with high costs to free EAs available to all users. The reason to use these forex robots is their ability to perform complex technical analysis or relocating experienced trader’s strategies, helping you trade. These are typically easy to install once you have an MT4 account.


Exploring Leading Forex VPS Providers


There are many options available when trying to select a Forex VPS provider, and it’s essential to choose a reputable and reliable service to fit your trading profile. Listed below are some leading third-party Forex VPS providers:

  • MetaTrader 4/5 VPS: MetaTrader is a popular trading platform that offers its own VPS service. Its seamless integration with the MetaTrader platform makes it a convenient choice for traders who primarily use this platform.
  • Known for its high-performance VPS solutions, provides low-latency access to trading servers in various locations. They offer plans to individual traders to suit their specific needs.
  • Beeks Financial Cloud: Beeks Financial Cloud is a well-regarded VPS provider that offers a range of hosting solutions specifically designed for forex traders. They have data centres strategically located in key financial hubs worldwide.
  • AccuWeb Hosting: AccuWeb Hosting offers VPS hosting services that cater to both beginners and experienced traders. Their VPS plans come with user-friendly control panels and technical support.


VPS for Forex Trading Takeaways


We have explored what a VPS is and how to use one. The advantages of a VPS should be clear to a trader, and are a useful investment. It is important to consider there are many different trading platforms and forex VPS, so you should take your time and do your research when picking one.

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