How to Use VPS for Forex Trading in 2023: A Comprehensive Guide

With the evolution of trading and the advent of technology, several tools and services have been introduced in the market to cater to the new needs of traders, and VPS is one such tool. You would have come across this terminology but thinking “What VPS has to do with Forex?” or if you know that some traders do use it in Forex, you might be thinking “How to use VPS for Forex trading?”.

No matter if you belong to the first group who are strangers to the concept of VPS application in Forex or belong to the second group and are unfamiliar with the steps to set up and use the VPS, you don’t need to worry as we got your back. We will tell you everything from the know-how of VPS to its benefits and application in Forex trading to the key features you should consider while buying it.

So without much ado, let’s dive in deep and find out more about “How to use VPS for Forex trading,” but before that, let’s take a quick sneak peek at what a VPS is and why should you use it while trading Forex?

What is VPS?

Virtual Private Servers (VPS) are a way to organize and manage data without needing dedicated devices. Now what happens is that several individuals can access multiple servers, each one isolated from others and with its own customization, on a single physical device. It means more people can access their respective servers on the same device without going through all the hassle that comes with sharing hosting.

They are a great solution for organizations that need to run multiple servers on the same physical server. They offer a cost-effective and scalable solution for hosting websites, applications, and data. It is also possible to use VPS as a backup solution for any server you might have in your organization. In addition, it can be used as an alternative to shared hosting solutions in which you have to pay per server and have no control over what software is installed on the server.

The industry is growing rapidly and the need for VPSs is increasing. With the ever-increasing demand, some companies or people are looking for a way to organize, process and manage their data in a secure, reliable, and cost-effective manner. VPS is quite promising in this regard. The benefits of using VPS include higher performance, reduced cost, increased safety, security, and privacy protection. 

How is VPS Different from Shared Hosting?

The main difference between VPS and shared hosting is that in VPS, each server has its own identity, separate resources, and its customization. Let’s discuss them in more detail.

Shared Hosting

Shared hosting is a type of web hosting shared among several users. It means that instead of using one server to host all the websites, they are split into different servers, and each user can access their server.

In shared hosting, no separate resources are available for different users, which means that the activity of one user can impact the activity of the other. Moreover, sharing resources among different users means limited storage space will be available for each user’s operation. Moreover, it will also negatively impact the bandwidth and CPU power. Users can even find themselves in situations where they have to compete against each other for resources or computing time.

VPS

VPS is a virtual private server that provides an isolated environment for users to run their own applications and services. It is a virtual machine (VM) running on an operating system, such as Linux or Windows Server, which provides virtual resources for different users on the same physical device (computer, laptop, etc.) It allows you to run multiple servers on the same physical server without buying additional hardware for each server.

There are many benefits of VPS. The most obvious one is that it is more secure and less expensive.

Unlike shared hosting, VPS provides you with your own dedicated server which you can set up yourself which gives you more control over your privacy and customization. Thus, with VPS, one user’s activity won’t have any effect on that of the other irrespective of both of them using the same physical device. So, whatever your particular applications of usage are, they will run optimally.

How does Forex VPS Work?

Forex VPS service allows a trader to make trades from a remotely accessed operating system. To reduce the information transit time and better connect the trader and the broker, many traders use VPS, which acts as a cloud-based or virtual operating system.

Despite the fact that a single computer is used to produce multiple VPS, each one has a fixed amount of CPU power and storage, so you know exactly what you’re getting and what you signed up for each month. It is worth mentioning that to access a provider’s VPS hosting service; you must pay a monthly subscription fee. So, this is how the Forex VPS works.

Now, once we have discussed the functioning of VPS, let’s address the elephant in the room and discuss “How to use VPS for Forex trading?”

How to Use VPS for Forex Trading?

A forex VPS hosting service enables traders to use the automated algorithmic approaches and trading strategies round the clock on their selected platform without any obstruction via the usage of Expert Advisors or Forex Robots, whom they have to configure and set up parameters. The rest of the work will get done by these robots. Following are the steps for using VPS for Forex trading

1. Setup VPS for Forex Trading
2. Download and Install MT4
3. Setup Your Expert Advisors/Forex Robots

Setup VPS for Forex Trading

Windows Operating System

Following is the step-by-step guide to setting up and using VPS on Windows 10.

1. First, on your windows main screen, click on the “Start” icon, afterward click “Windows Accessories,” and choose “Remote Desktop Connection.” Conversely, you can click the search bar or press the “Start+S” button and in the search panel, write “Remote Desktop Connection” and click it.
2. Now, in the window of Remote Desktop Connection, write the VPS IP address you got from your VPS provider.
3. Afterward, choose “Show Options” and write your username in the provided space. Click on the “Connect” option to proceed further.
4. Afterward, the system will ask you about the password; write it in the available space, and voila! You can access the rented device via the VPS and start Forex trading.

Android Device

Following is the step-by-step guide for setting up and using VPS on Android devices.

1. Firstly, open the “Google Play Store” on your android device, and in the search bar, search for “Remote Desktop” and select the application that interests you the most or perfectly aligns with your trading style and goals.
2. Once you have chosen the application of your choice, install it.
3. Open the application, and you will get a pop-up about the terms and conditions, read them carefully and afterward accept the terms if you want to continue.
4. Once you have accepted the terms and conditions, on the main screen, at the extreme right you will see a “+” sign, tap it and choose the “Desktop” option to connect the computer.
5. Afterward, add your VPS IP address and save it.
6. Once you have saved it, you will see a screen-like icon, click it, and a badge or window will pop up where you have to add your username and password. Once you have filled in the required information, tap “Connect.”
7. Voila! Your VPS connection has been set, and you can start your Forex trading.

It is worth mentioning that accessing the VPS on older android mobiles may result in lagging issues. Moreover, you should ensure a fast and reliable internet connection, as it is necessary for the smooth application of VPS for Forex trading.

Download and Install MT4 on the Forex VPS

What you have to do is to get yourself registered with a broker that supports VPS and provides you with MT4. Conversely, if your broker does not provide MT4 following are the steps for downloading and installing MT4 or Metatrader on your Forex VPS.

1. On your search engine, write “Download MT4” and search for it.
2. Choose the MT4 trading platform of your choice and download it.
3. Once it gets downloaded, open the downloads folder and run the installer.
4. You will get windows pop up with a licensing agreement. Read it carefully, and click the “Next” button to proceed and install the MetaTrader.
5. Once the installation process is complete, you can use the trading platform to carry out your Forex trading.

Setup your Expert Advisors/Forex Robots

When it comes to the Expert Advisors or the Forex robots, if you have a background in coding or have some know-how of coding, you can make and configure your Forex robot yourself, or the easier way is to get it from the market in your Metatrader. You can either go for the premium Expert Advisor options for better performance or the free alternatives if you are tight on funds.

You must set parameters like when to enter or exit the trade and define the stop loss order value, etc. That’s it; once you set the parameters, the EA is there to trade for you, and an automatic trade will begin when your said parameters are met. Thus, Forex Robots follow certain rules, strategies, and indicators without any human intervention to increase the chances of making profits for traders.

Why Should You Use VPS for Forex Trading?

Forex trading is an important activity for many people. It can be a profitable business and requires a lot of technical skills. Forex trading has become more popular over the years as the price of Forex has increased dramatically. It is a very competitive market with many players and huge profits to be made. 

The best way to succeed in Forex trading is to also use the right software and hardware along with the right trading strategies, the reason being that trading, especially scalping and day trading, are something that requires you to be on your toes throughout the day so that as soon as you come by a lucrative trading opportunity, you contact your broker and grab that opportunity without wasting time.

Thus, trading is not only a game of wits and strategies but also speed and time. It might seem difficult to buy a separate device for your trading, and that’s where VPS will help you. Following are some of the advantages of using VPS for Forex trading.

Improved Latency and Faster Speed

Forex trading requires more than your computer’s processing power to run smoothly. It requires a lot of data transfer, memory space, and CPU power. So, it will be better to trade Forex using a dedicated server on your desktop and VPS can provide that.

The advantage of using a dedicated server for Forex trading is that no other applications are running on it, which means that they will not slow down the system during trading sessions. Thus, higher speed is one of the perks of using VPS for Forex trading.

Let’s understand this via an example. Consider that your broker is based in the USA, but you are trading from France. It means that to execute a trade; the information has to travel from your server in France to the broker’s server in the USA. Even while it might just take a fraction of a second for the information to reach the broker, in Forex trading, which is the game of wit and time, this fraction also matters.

Conversely, if you were to be located in the USA, your orders would have been executed at a faster speed (as both you and the broker are based in the same country/area). Now with VPS, what happens is that you can rent a server (desktop) that is in the vicinity of the broker’s server, so when you make a trade with that server, it seems like you are making the trade from somewhere close to the broker. Thus the transfer of information and execution of trade will be much faster.

You can read if Forex trading is legal in the USA here.

Secure

It is important to ensure that the Forex-related data you store is safe. With the help of a VPS server, you can ensure that your data will be secure and protected as each of the users using the VPS has their unique password, and none of the users can know the other’s password or interfere in their work.

Moreover, VPS offers high safety and security owing to the fact that it ensures the absence of system failures and offers defenses like server firewalls, etc.

Reliability

Forex trading is a highly risky business. The risks of trading are high, and many factors can affect your trading results. If you want to make money in this market, you need to be able to keep up with the trends and remain ahead of your competitors and as soon as a good opportunity appears in the market, you should be able to grasp it immediately.

Many traders have turned to virtual private servers (VPS) to ensure their trading sessions are as reliable as possible. VPS servers are not only reliable but also cost-effective. They are also highly secure and are monitored by experts round the clock to ensure smooth working operations, and therefore the incidences of VPS failures are close to none.

The best part is that you or your Forex robots can make trades around the clock, even if your broadband has connection issues. Thus VPS can even withstand power and internet outages in your area. It means that the trader can continue with his work without interruption and hence generate more profit by making the right trades at the right time.

Active 24/7

Expert Advisors are automated trading systems that trade on your behalf as they have been programmed to identify profitable trades and take action when the set conditions are met. These tools work around the clock and are especially helpful for those who are not able to trade actively. Thus, to ensure that the Expert Advisors work correctly, VPS is a great way as they ensure that there won’t be any halt in your trading as it offers smoother application of all the activities of the Expert Advisors round the clock even in case of internet outages in your area.

All in all, you should use VPS for Forex trading as it is reliable, safe, speedy, and works smoother.

When can You use Forex VPS?

Forex VPS is a very useful tool for Expert Advisors or Forex robots that have to continuously analyze the market conditions and enter or exit a trade if the particular parameters set up by the trader are met. So, once you have devised a trading strategy and back-tested it, you can buy and set up the VPS to enter the market and trade.

The best part is that you do not require human input all the time and function, keeping the already set parameters in view. All you have to do is set parameters. Once you set the parameters, the EA is there to trade for you, and an automatic trade will begin when your said parameters are met. Thus, Forex Robots follow certain rules, strategies, and indicators without any human intervention to increase the chances of making profits for traders. Moreover, they save a lot of time on the trader’s behalf as the trader does not need to continuously monitor all the trades.

Rather he has to set the ground regulations, and the EAs will do all the work afterward. For the smoother application of the Expert Advisors round the clock, VPS is necessary as even in the case of connectivity issues or internet outages in your area, the work of your Forex robot won’t be halted.

If you want to know more options for making passive income from Forex trading, you can read Is forex trading passive income here.

No doubt that using a VPS comes with many perks, so now that we have discussed “How to Setup and Use VPS for Forex trading,” it is the right time to discuss “How to choose Forex VPS?”

How to Choose Forex VPS?

When it comes to choosing VPS, it mainly depends upon your personal preferences. Following are some important things to consider while choosing the Forex VPS.

Location

The geographic location of the VPS is also an important consideration. For better connectivity, it will help to choose a VPS lying in the vicinity of the broker’s server.

Security

You should consider the safety and security protocols of your VPS providers as your data and network security should be ensured via setting up defenses like a server firewall.

Customer support

Factors like reliable and helpful customer support are also important considerations for a VPS. It will help if you also consider whether the customer support can resolve technical issues, provide free backups, monitor the servers round the clock, etc.

Price

Now comes the factor that holds much importance for many traders: the price of the VPS. You can choose if you want a VPS from your broker or another company.

Moreover, you can either opt for the managed VPS or the self-managed one. The managed VPS service is on the upper end when it comes to price but it also facilitates you as it comes already configured from the VPS provider, thus saving time and some effort on your part. On the other hand, with the self-managed VPS, you have to do the configuration, costing you less than the managed VPS service.

It is worth mentioning that apart from VPS, your hardware also impacts the smooth functioning of the trading platform on your desktop. It will be best to consider the purpose for which you will use the VPS (e.g., Forex trading) and the frequency of your usage, as these factors directly impact how powerful the computer (CPU Power, RAM, ROM, etc.) you are going to need.

Best VPS Providers for Forex Trading

VPS services enable traders to manually trade or use their Expert Advisors to seamlessly trade in the forex market round the clock, owing to its strong connectivity, reliability, and secure connection. Moreover, the Forex VPS’s primary benefit is reduced information transit time or latency time. Following are some of the best VPS services that you can use for smooth and strong connectivity when trading Forex

1. ScalaHosting
2. AccuWeb Hosting
3. Cloudzy
4. Kamatera
5. Forex VPS
6. V2 Cloud
7. VPS Server
8. JavaPipe
9. FXVM

Depending on your specific preferences and requirements, you can use any of these VPS services or others of your choice.

If you are new to Forex trading and want in-depth knowledge of this financial market, then our beginner’s guide to Forex trading will surely come in handy.

Conclusion

We conclude our article “How to use VPS for Forex trading” on the endnote that using a VPS for Forex trading provides you with many perks like fast speed, high safety, and security (since it ensures the absence of system failures and setup defenses like server firewalls, etc.), reliability and 24/7 smooth connectivity. On the downside, this service does cost you some money, and some VPS services come with a limited capacity which are some things to consider before buying VPS.

All in all, owing to VPS, Forex traders may very well be confident that their Expert Advisers will always be operational round the clock regardless of whether or not their desktop is turned on and whether or not their home internet connection is working. It gives traders more flexibility and helps them seize opportunities without manually monitoring the whole trading process. Thus, the Forex VPS benefits undoubtedly make it an excellent choice for Forex traders. We hope you have understood something new and interesting about how to set up and use VPS for Forex trading.

Happy trading!

References

• Uninformative feedback and risk taking: Evidence from retail forex trading
• Technical analysis of Forex by MACD Indicator
• Extended evidence on the use of technical analysis in foreign exchange
• Can deep learning improve technical analysis of forex data to predict future price movements?

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