The forex market is unlike any other, and the constant demand for a holistic view of financial climates makes the world of FX more challenging and rewarding for those who are quickest to react to changes in the market. For many traders, the fast-paced nature of forex also demands incorporating intuitive tools to aid the way. This has paved the way for forex VPS to shine.
To be best prepared to react quickly to market changes, successful forex traders must always keep their fingers on the pulse. But this isn’t always possible depending on the work and life balances of traders.
Many forex traders also begin their journey on a smaller budget, trading on older hardware with limited screen space. With global financial markets operating around the clock, it can be very tricky for even the most knowledgeable traders to make the best trades at the best times. However, a virtual private server (VPS) can cater to this need well.
But what actually is a VPS? And how do they work? Let’s take a look inside the world of forex virtual private servers, and explore how they can transform the performance of FX traders:
The Perpetual Trading Tool
So what actually are virtual private servers? And how do they apply to the world of forex trading? In a nutshell, a VPS is an emulated server that remains perpetually connected to broker trading networks on behalf of a trader. They feature a trading terminal and operate as a subscription-based software-as-a-service (SaaS) tool to support perpetual trading.
For ambitious traders, virtual private servers can support the running of automated or semi-automated forex trading systems at all hours throughout a working week. They are also accessible from a range of smart devices and are excellent for traders who are seeking to monitor the markets without missing out on trades around the clock.
Here, it’s worth noting that a VPS isn’t a dedicated server, and actually forms a more low-cost single-server system that can host a range of private servers.
The Power of Low-Latency Trading
One of the most important aspects of forex trading stems from the speed of trades. Factors like latency can cause lag between a trader’s command and the speed of their computer in actioning it. This means that the higher the latency, the more money could potentially be lost on a perfectly well-executed trade.
This is where a VPS has the power to step in and enhance the experience and performance of traders. Easy-to-access platforms like Windows VPS are useful and dependable tools for traders to make the right trades without the risk of costly delays.
For example, high latency rates could cause slight shifts in pricing after a user clicks either ‘buy’ or ‘sell’ to execute a trade. Although these changes in price could be subtle, when trading at volume the results can cause a buyer to lose out severely.
Even a tiny slippage can pave the way for losses of thousands of dollars on a yearly basis. It’s through dedicated VPS platforms that traders can operate in a more decisive and swift manner.
For example, MT5 have recently cemented its position as a leading VPS solution for automated trading. MetaTrader 5 offers access with less than five milliseconds latency for as much as 82% of brokerage servers. This empowers traders to gain a crucial edge in bolstering their execution speed.
With 99.99% maximum uptime and 24/7 accessibility, they offer a clear insight into how FX traders can avoid the pitfalls of weaker internet connections when it comes to maximizing their potential.
Crucially, this means that traders can transfer their robots to the virtual server without any need for programming skills or technical knowledge. With apps capable of being migrated in a couple of clicks, traders have the ability to keep their bots permanently switched on to the market with no threat of latency issues.
Reaping the Rewards of VPS Trading
While we’ve looked at the benefits of shorter latency within VPS-based forex trading, there are a great many benefits for traders that span beyond making rapid trades.
For instance, VPS traders are less likely to be affected by outages or system errors and are highly suitable for traders using Expert Advisors. Furthermore, it’s possible to open many MetaTrader 5 panels from the same VPS and utilize trading bots around the clock to execute trades on your behalf even when a computer is switched off.
It’s the ability to use dedicated trading bots without the need for their computer to be switched on that can reap the biggest benefits for traders. It can pave the way for largely automated trading, with only a number of regular tweaks needed to adjust price expectations and adapt to fundamental analysis.
In a forex market that sees as much as $7.5 trillion traded each day, it’s the ability of VPS trading and the quick actions of bots that can help traders to identify opportunities to take profits at the right time and to move faster in a densely populated landscape.
VPS Keeps Traders Ahead of the Crowd
There are plenty of VPS options out there for forex traders, but coupling the server with an Expert Advisor can be the key to forming a successful trading partnership that continues to reap rewards around the clock.
For traders who opt to use a VPS without a sufficient trading setup that features perpetually switched-on bots ready to trade, it would mean that a desktop, laptop, or smartphone would need to run FX applications on a 24-hour basis.
By combining a forex VPS, Expert Advisor, and the right automated systems, investors can benefit from limitless access to global trading markets without any form of hindrance. With the bot trading sufficiently on an external basis on behalf of the user, traders are free to identify and execute opportunities throughout the day and night–creating an omnipresence that’s unlikely to be interrupted by latency restrictions.
On the date of publication, Dmytro Spilka did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.