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February 4, 2021 by Kiet Duong

Is There an Advantage to Using a Forex VPS for Trading?

forex vps for trading advantrages

Virtual Private Servers (VPS) have been used for years by individuals, organizations and companies for virtual hosting. However, VPS has only recently become a more serious server provider contender for those in the financial markets. With the increase in the use of Expert Advisors (EAs) and Trading Robots in the retail trading community, the demand for VPS has grown.

But what exactly is a VPS, and how does it help forex traders? What are the benefits of using a VPS for forex trading? We answer these questions below.

What’s a Forex VPS? Here’s A Refresher

A VPS offers a partitioned area of a server to an individual forex trader.  It also offers it’s own operating system, memory, storage, and data transfer limits. 

Learn more about a Forex VPS in this article.

So, what exactly does the process look like for establishing a VPS? When the forex VPS hosting service is setup for the first time, the trader will receive a dedicated IP address with a username and password that allows them to gain access to the VPS.

By using the remote desktop connection on a computer with a Windows operating system, the trader can access the VPS, download the MT4 trading platform and access the broker. You can also access remote desktop on a linux or MAC pc.

Simply put, the VPS provides a remote desktop function for the trader’s EAs, which results in several key benefits. But just what are those benefits?

Advantaged of Choosing a Forex VPS

There are several reasons why retail traders are choosing VPS to run their EAs. The three most important areas where a VPS provides benefits over a traditional server option include stability, speed, and cost.

First of all, stability is a major concern for any trader at any level. For retail forex traders who choose to use automated trading, a VPS provides an excellent time-related benefit in that the system can continue to trade 24
hours a day. These trades can happen without monitoring (from the trader). 

Furthermore, the VPS provider will make sure that the server is constantly monitored, ensuring no any network downtime are tended to. Because of this reliability, retail forex traders can expect to benefit from more
trading opportunities and the continuous execution of their strategies.

This constant monitoring also prevents and limits attacks because everything is kept up-to-date. Network upkeep and antivirus installations are downloaded as soon as possible, which leads to fewer system errors, crashes, and less opportunities for hacking.

A trader’s position is much more secure with a VPS because of the increased stability that the constant monitoring provides. Network downtime, power disruptions, system crashes, and flawed connections are extremely limited.

The second major benefit of using a forex VPS provider is speed. When the retail forex trader chooses a VPS that is located close to his broker’s server, then network latency is significantly lowered. Low latency means that EAs can perform faster trade executions. Most experts recommend that the network latency should be below 5 milliseconds.

Speed is also affected by the server’s ability to handle high workloads. A VPS provides a major advantage in this area because they are able to split their resources among a number of users. However, it’s important to choose a VPS provider who guarantees 99.9% or 100% uptime, to ensure that the server usage is being managed.

The third and final important benefit of using a forex VPS provider is cost. The cost of a VPS is much lower than that of a dedicated server. Retail forex traders cannot afford the same fees that institutional traders are able to for their trading engines. Therefore, a VPS is a fantastic option, cost-wise, for retail traders.

What To Research When Deciding On A Forex VPS Provider

If you’ve decided that using a VPS for your forex trading, then you’ve taken the first step to enjoying better stability, faster speeds, and lower costs. Now it’s important to research the different VPS providers who are available.

There are several factors you should take into account:

    • Platform Availability: Make sure that your forex broker will allow you to access the MT4 and MT5 platform on a VPS server. These platforms offer options to trade with EAs and Trading Robots, which work extremely well with a VPS. If possible, test out your EA on your platform for efficiency.


    • Plan Options: You should choose a VPS provider who offers a range of plans. That way, you can make sure you’re paying for exactly what you need – and nothing else.


    • VPS Location: Make sure your VPS provider offers a server in a location that is close to your broker’s server. This will help minimize network latency.


  • Uptime Guarantee: Performance is key, and if the VPS isn’t monitored closely enough so that 99.9% or 100% uptime is guaranteed, then you should consider a different VPS provider.


With many retail forex traders using EAs, the need for a stable, fast, and cost-effective servers is growing. Virtual servers are proving to be the answer.

If you’re using EAs or Trading Robots for your forex trading, then a VPS might be the right option for you. IO Zoom can help you choose the best forex trading plan for your specific trading needs.





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