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Why Traders May Need To Use a VPS Service

Author: Martin Moni
Martin Moni
All publications of the author

There are many resources available to us forex traders. Some of them are absolutely essential like reliable forex companies and forex trading platforms, which you can’t do without. Most are important resources like the economic calendar forex and technical indicators. Then there are those that are optional like VPS services. VPS simply stands for Virtual Private Server, and its purpose is just as its name suggests.

In layman terms, just think of a VPS like a computer in a different location. You gain access to that computer remotely through your own computer, and have full authority over it. That means you can install any software you want and include any files on it, just as you would your own computer. While trading the forex market, you can install your broker’s forex trading platforms, monitor real-time forex charts and control the trades remotely. Your own computer just acts as an access point, but doesn’t have anything installed on it.

Advantages to using a VPS service

As mentioned above, a VPS service is one of the optional services available to forex traders, and you don’t have to have it to be profitable. Nevertheless, it has several advantages that make it useful and perhaps even necessary for certain traders. Some of these advantages include:

No downtime

A VPS is supposed to work 24/7 unlike a personal computer where the forex trading platforms stop working when you shut it down. This advantage of VPS services is especially appealing to traders who make use of trading algorithms and expert advisors (EAs). As you know, these features can only work as long as the trading platform is up and running. As soon as your computer is off or the platform is closed, these features won’t work. That means you may miss a lot of opportunities in that time and potential profits. (Learn: How to launch an expert advisor on MT4)

On the other hand, VPS services don’t shut down, and they are supposed to keep running fulltime. With a VPS subscription, therefore, all your algorithms and EAs keep running all the time, catching all the possible trading opportunities that are available. There is no downtime when you use a VPS. Traders who use algorithms for high speed trading are especially in need of VPS services since the trading algorithms have to keep executing numerous short-term trades as opposed to long-term trades. For a swing trader, a VPS service may not be very useful since they only make a few trades in a day or week. (Differences between: Long-term vs. short-term trading)

Improved performance

Trading platforms, just like any other software, require a lot of processing resources. Many traders may not have noticed any slowdowns on their platforms because they only use a few indicators and tools to trade. However, for those traders who have installed multiple custom technical indicators, EAs and algorithms, platform hanging and freezing is a real problem. Unless you have got a really high-end computer, it might become a serious  problem because even the trade execution is slowed. (See the: Best technical indicators and how to use them)

For these traders, they may need a VPS service in order to improve the performance of their trading. VPS service providers have the most high-end computers and processors to ensure that their clients never have to experience any lags or slowdowns, and this is why a VPS is recommended for these kinds of traders.

Besides the obvious need to supplement processing power, a VPS may even improve the trade execution speed. Depending on where the VPS server is located in relation to the location of the forex broker’s server, the service can improve the speed at which trades are executed. For example, a broker based in the UK and a VPS server in the same country will have a faster execution speed compared to a trader in Spain or Germany trading from their computer. This is why you find many investment banks and hedge funds located on Wall Street, close to stock exchanges like the NYSE. As a result of this, there is limited slippage in trades, even when volatility is extremely high. (This is: How to trade on the NYSE)


What do you do when you’re on the road and would like to place a trade? Most forex brokers will have a mobile application, usually MetaTrader, but some don’t. For these traders, options are limited while they are not at their trading stations, but a VPS can solve the problem. You see, when you have a VPS, you can access it from any device and from any location in the world, as long as you have got the login details. For someone who travels a lot and doesn’t have their broker’s mobile app, then they absolutely need a VPS server.

Improved security

You may not be aware, but hackers have many ways of accessing your computer and taking control of it remotely. They can even manage to acquire your passwords through phishing schemes or lock you out through ransomware. In fact, ransomware attacks have been so common lately, with the hackers demanding payment in bitcoin. What’s worse, they rarely even bother unlocking your device after paying the ransom.

For any serious trader, security needs to be a real concern, and a VPS service may help with that. Just like any other service provider, the VPS service provider is liable for security attacks, so they ensure that they keep optimum security. Most reputable VPS servers will have antivirus software included in the package, as well as security from other vulnerabilities.

How to choose a VPS service

Now that you’re here, maybe you figure that a VPS server is just what you need. Fortunately, there are many VPS service providers dedicating their services to forex traders. The only question is on whether they provide all the features you need at the right price. If you really need a VPS server, though, it may be a good idea to go for the most reputable companies, even if they may have higher charges. Otherwise, the lesser known companies may compromise on a few issues in order to keep costs low.

Alternatively, you may inquire if your forex broker offers VPS services along their other services. Several of the top forex brokers will offer VPS, and some will even be free, although only to VIP/gold clients. Nevertheless, this is the easiest way to do it because the forex broker themselves will be eager to ensure you are fully satisfied. (These are the: VPS forex brokers)


If you're curious about where to start with finding a VPS, this video is going to show you a few examples and how to set it up:

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Risk Warning: Your capital is at risk. Statistically, only 11-25% of traders gain profit when trading Forex and CFDs. The remaining 74-89% of customers lose their investment. Invest in capital that is willing to expose such risks.
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