Home Tips & Tricks How to Set Up and Use VPS for Forex Trading

How to Set Up and Use VPS for Forex Trading

How to Set Up and Use VPS for Forex Trading

Virtualization isn’t just limited to traditional web hosting. As forex is an online-traded activity, being as virtual as possible has become commonplace. In this realm, we have Virtual Private Servers.

With this technology, long gone are the days of worrying about not being connected to the internet if you use robots, scalp the markets, or trade the news. Traders can capture the fluid market action even when they are away from their computers or experience any type of interruption.

In forex, entries matter greatly, and the quicker the process, the more potential profits. Along with providing the uses, benefits of virtual hosting, and tips on choosing a VPS, this article will guide you on the simple setup process.

What is a VPS?

A blue-lit room with stacks of server machines

A VPS is a hosted virtual computing machine remotely running a dedicated or private server connection. 

Ordinarily, when traders execute a position on their platforms, their orders go through multiple shared servers before reaching the broker’s data center fulfilling the order. 

While, for the most part, this process is highly efficient and ultra-quick, a VPS can bring this down to as low as a millisecond. The difference may seem insignificant, but it fosters a massive performance improvement considering the ultra fast-paced and erratic nature of forex price movements.

With a VPS, a trader receives their own private server connection away from thousands of others on the same network. Hence, the execution is significantly faster, minimizing latency and ensuring a smoother trade fulfillment. 

So, what are the main benefits of a VPS? Aside from the enhanced execution quickness, this service runs around the clock even when traders themselves aren’t connected to the internet. 

Hence, a virtual private server is used primarily by those employing expert advisors or robots where constant connection is necessary to reap the benefits of automated strategies fully. 

Even if a trader experiences a power failure, unexpected shutdown of their own computers, or any other glitch, their robots will continue functioning with a VPS. Other traders who may benefit from this optimal access also include scalpers and news traders who inherently need the fastest connectivity, considering their high execution rate.

Picking the best VPS for forex trading

Here are the main features to observe when choosing a forex VPS:

  • 99.9 % uptime: This is the industry standard. Uptime is the time at which a computer is functioning. So, 99.9% uptime means the VPS rarely goes offline. For trading purposes, one can have the peace of mind their platform will be running almost all the time.
  • Cyberattack protection: Like any computer network, any VPS is susceptible to cyber-attacks. Leading VPS providers would employ a mechanism like DDoS (distributed denial of service) protection free of charge or additional cost to combat this problem.
  • Good range of supported operating systems and trading platforms: A vast majority of forex traders use MT4 on Windows. Yet, some might use other platforms (cTrader, NinjaTrader, etc.) on different operating systems like Mac and Linux. Hence, an advanced VPS provider should cater to a broader market than simply Windows-MT4.
  • Server proximity: To reduce latency as much as possible, traders must choose a VPS closest to a broker’s data centers, preferably in the same country. If not, it should be on the same continent.
  • Excellent customer support: It shouldn’t be a hassle for traders to contact someone for any potential issues. A functioning live chat is a must nowadays for many service businesses, and hosting companies are no exception. While other channels like email and phone are beneficial, live chat should be prioritized.

Setting up a VPS in forex

The setup steps below are followed by traders using MT4 on Windows as most VPS services offer their private servers to this demographic. However, the concept would be relatively similar to other trading platforms and operating systems.

The aim is to enable a remote desktop connection to your chosen VPS IP address. Here are the steps to follow:

  1. Of course, the first step is signing up for an account with a preferred broker who will provide your login credentials. If you’re using a VPS which hasn’t included this broker, you’d have to seek approval for them to join this network. 

At this point, the trader should have the IP address connecting them to the broker’s data centre/s on the VPS.

  1. After acquiring this information, one must open an RDC or remote desktop connection on their computer. The quickest method on Windows is using the search tool and simply typing ‘remote,’ and the RDC should be the first option popping up.
  1. The ‘General’ tab opens up where two fields, ‘Computer’ and ‘Username,’ show. In the first field, you’d simply input the IP address; in the second field, this is where your password goes. Afterward, the VPS is technically live.
  1. Now, one needs to download the MT4 platform of their chosen broker on the RDC and run it as they usually would.

Gaining access to a VPS in forex trading

There are generally two ways of gaining access to a VPS in forex; getting the service from a hosting company or your broker. 

The second option may be advertised as costless, but more than often not, you will be required to have a high minimum deposit (at least $500 or higher) and maintain a certain number of lots monthly. 

A few brokers like Exness, Roboforex, and FBS have more reasonable terms and conditions. Alternatively, it’s probably better to find an affordable monthly subscription deal based on the required specifications from the plethora of hosting companies available online.

Final word

Although a VPS offers a few advantages, it’s unnecessary for all traders in the markets who can perform just fine without it. This service is mandatory for those who use robots as they need an uninterrupted internet connection.,

Other traders who might benefit from the swiftness of a VPS also include scalpers and those trading high-impact news releases. In the selection process, one will need to ensure they can afford the server over the long run and that it has the necessary technical features.


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