A Virtual Private Server or VPS is a remote computer that is online 24/7. VPS servers can be very useful if you are serious about forex trading. The specially optimized VPS servers for forex trading are known as Forex VPS. However, similarity to the names - should not be confused Forex VPS server with VPS server! Only specially optimized Forex VPS servers allows you to run an automated trading system or automated forex signal around the clock and also lets you execute trades with minimal latency and time slippage. The cheap WIndows VPS Servers are totally useless In Automated Forex Trading! Never use a cheap VPS server in your trade because it's a recipe for losing money! We’ll discuss each of FOREX VPS advantages in a little more detail below.
Run your forex expert advisor or signal subscription around the clock
Most automated trading systems are designed to be deployed once and left to run around the clock. This presents a dilemma for automated traders though, as it is near impossible to run a home computer around the clock without downtime. As well as the power cost considerations, personal computers are prone to crash and restart following automatic updates. To make matters worse, on a modern Microsoft Windows systems, automatic updates can’t actually be turned off. Down time from crashes and updates can lead to serious problems in automated trading: your system could fail to open a trade, trail a stop or exit a position profitably. Missed trade actions like these can have a substantial negative effect on realized performance and even make or break a system.
Traders face similar problems when running an automated signal system. Though lots of automated signal services are server-side, there are also quite a few that use trade copying software to replicate the signal’s trades. Just like running an expert advisor, computer down time can interfere substantially with signal performance and cause massive divergence between the signal provider’s performance and your own.
Setting up a MetaTrader 4 terminal on a NextPointHost FOREX VPS helps you avoid these issues and ensures you never a miss a trade entry, trade management or profit taking opportunity. As your Forex VPS is only used for trading, you will generally only install a copy of MT4 on it, which makes the system much more reliable and less prone to crashes from software/hardware conflicts. For added security, the highly-qualified NextPointHost's team has developed unique software without an analogue called AlwaysUP.The NextPointHost Forex VPS servers have specially optimized for trading Windows OS, where automatic updates are installed without need of reboot. All unnecessary Windows features and services were removed. The high availabity infstratructure with 5 levels of reservations gurantee uptime of 99.9999%. In very rare event that your VPS does experience a crash or forced restart, the AlwaysUP will automatically reboot, login, launch the MT4 platform and sent you notifications via email or SMS reducing potential downtime in the event of a problem.
Improved trade execution speeds and reduced slippage
Though a Forex VPS service is essential for automated trading, they can also vastly improve your manual trading experience and performance. Have you ever tried to jump into a trade, but the order confirmation window just hangs and the market moves without you? Your order will usually be filled a few seconds later, but often at a much worse price. This is known as time slippage and occurs because there is a poor connection between you and your broker’s trading servers. Even if you are based in Australia and trading with an Australian broker, top tier Australian broker’s trading servers are located in the world’s financial centers: New York, London and Frankfurt. This means there can be a substantial delay between you sending a trade instruction and that instruction reaching your broker’s servers and being executed.
Specialized hosting company NextPointHost situate their forex VPS servers into financial data centers where the servers of your broker are placed. Their server infrastructure is connected to these data centres by lightning speed fibre optic cables. This means communication between your MetaTrader 4 terminal and your broker is incredibly fast and time slippage is drastically reduced. When you attempt to open a trade via a Forex VPS, you’ll notice the trade execution alert plays almost instantly. Though lag can’t be removed entirely, as your computer still has to communicate with the Forex VPS, the improved terminal-broker connection speed more than makes up for any local delays.
If you are a professional scalper trading significant size; a few seconds, pips, or even points can make a huge difference to your bottom line. Scalpers rely on their entry accuracy, take profit levels and breakeven stops to ensure profitability. Though you can’t control how much liquidity your broker has on offer and price slippage will always get worse with larger trades, time slippage can be reduced significantly by manually trading from a dedicated forex VPS service. If you find your trading results are being adversely affected by poor execution and slippage, a dedicated forex VPS service may well be the answer to your problems.