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VPS and Forex trading

VPS and Forex trading

created Paweł Mosionek23 March 2017

Using a Virtual VPS to Trade on Forex market it is the next step of initiation. VPS - this mysterious acronym is often used in forums. But what is it actually, what could it be used in trading and do you need it too? We already explain.

What is VPS

vps metatrader 4

Desktop view with VPS

Virtual Private Server, i.e. in English a virtual private server. This is called a dedicated server, i.e. a machine divided into several smaller ones and distributed on-line. The administrator can freely allocate other resources to each of them. Thus, they can have different configuration due to, for example, the operating system, processor, RAM, disk space, access to IP addresses, etc. guaranteed resources to which the machine always has access, and optionally those that may be available only temporarily (e.g. depending on the load level of the entire server). To simplify the whole definition - it is a computer on which we can perform standard operations, but it is only available on-line.

It should be noted that we have access to the VPS only when the main machine is working properly. It happens that the service provider limits the data transfer to the client, but usually these are very large limits in terabytes, so it does not matter in the case of FX traders.

Why VPS Forex tradersvps forex

Let's be honest - "I have my own VPS" sounds cool :-). But what exactly do we need it for? There are at least a few uses.

  1. Trading with a machine (expert advisor). By far the most common reason. A trader trading with the machine, on most trading platforms, must leave the computer with the broker application turned on for EA to be active and keep an eye on the market at all times. This generates additional costs and properly disables our computer if we use a laptop. Additionally, there is a problem with access to the Internet, which can be unreliable.
  2. Shortening the time of execution of orders. Shortening the distance between our computer and the platform from which we send the order and the server that handles it, of course, improves the time of order fulfillment. In the case of scalping strategies, news trading or HFT, the battle is about milliseconds, and their "cutting" often brings large savings or even determines the profitability of the strategy.
    Read: What is the importance of the speed of execution of orders
  3. Access to a personalized platform from anywhere in the world. In the event that our trading requires extraordinary settings and / or tools added to the platform, moving or traveling requires us to drag a laptop with us. However, if everything is run on a VPS, we have access to the application configured by us from anywhere in the world (as long as we have access to any computer, tablet or smartphone and the Internet 🙂).

    This application is increasingly used by traders who are not satisfied with mobile versions of trading applications. Very limited possibilities and the lack of options to add your own scripts or indicators in the eyes of some completely disqualify platforms on iOS or OS Android. Connecting to the platform via VPS from a tablet or smartphone eliminates this problem and allows you to operate a full-size platform (although on a non-full-size screen ...).

How to buy a VPS

The purchase of our virtual server is a very simple operation. First, select the service provider. In the case of a trader, the most important will be 3 basic parameters of the offer:

  • operating system - due to the fact that most platforms run without problems on Windows (e.g. MT4 / 5), it is worth choosing Windows,
  • server location - the closer to the broker's server, the better,
  • stability and reliability.

If we do not want to use our VPS to support several platforms at the same time or use very advanced solutions, the same technical parameters of VPS will be a secondary matter.

Prices of services of a reasonable quality start with approx. 30-40 PLN net per month, so it is not an excessive cost.

The next step is to place the order with filling in the application and pay the fee. It is worth paying attention to the terms of the contract. Very often, the subscription is automatically extended for another month, and the funds are charged from the credit card without our approval each time. In 95% of cases, the installation and basic configuration of the VPS is on the side of the service provider and is free.

An increasing number of Forex brokers offer dedicated VPSs to their clients. The offers are varied, but the decisive advantage of such a solution is their location - a dedicated server is usually VERY close to the broker server. Expense? Some companies offer a free service on condition that the appropriate turnover is generated on a given month. Other brokers propose a fixed monthly fee for accessing a VPS (usually around $ 20-30 / month).

Access to VPS Forex is offered by:

  • Tickmill (turnover subject to negotiation),
    remote Desktop

    Login via the Windows Remote Desktop

  • FxPro (30 USD / month),
  • IC Markets (15 lots / month).

How to start and use VPS Forex

For this you will need the software available in the standard on Windows (service "Remote Desktop Connection"). You can also use one of the products offered (for free) on the web, such as Xen, VMware, OpenVZ, FreeVPS, Virtuozzo. One of the most popular among traders is VMware. The program should enter data provided by the service provider in the form of username, password and server IP address.

How to run the platform on VPS

Contrary to appearances, it can be problematic. VPSs often have turned off many of the functions we are used to when operating a home computer. Similarly, when copying data from the outside - connecting the disk or USB flash drive is not necessary, because we do not have available USB ports :-). Sometimes we can copy a file from our computer directly to the server, but not always. And then what? You can send a given file to our own e-mail from which it will be downloaded or to a file sharing server - there are quite a lot of them (free). In the case of a broker platform, you can also download the installation file again from the server. If something does not work or the installation will not be possible, you have to use an earlier solution. If necessary, pack the installed platform from the computer disk and send the file in .rar or .zip format.

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About the Author
Paweł Mosionek
An active trader on the Forex market since 2006. Editor of the Forex Nawigator portal and editor-in-chief and co-creator of the ForexClub.pl website. Speaker at the "Focus on Forex" conference at the Warsaw School of Economics, "NetVision" at the Gdańsk University of Technology and "Financial Intelligence" at the University of Gdańsk. Twice winner of "Junior Trader" - investment game for students organized by DM XTB. Addicted to travel, motorbikes and parachuting.

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