Forex, or the Foreign Exchange Market, is all the rage in the trading world these days. Because currencies are important to the vast majority of people around the world, these currencies need to be exchanged to conduct and complete foreign business transactions.
The Forex market is simply a global decentralized market for all these currencies. It is here they are bought, sold, traded, and exchanged. All of this is done at the current or determined prices and exchange rates.
Forex is by far the largest financial market in the world. Indeed, this is the chief reason that so many traders, both new and experienced, begin trading in it in the first place. With an average value of $2,000 billion USD traded per day, there is room for everyone to carve out a little piece of the pie.
So where does VPS fit into the picture? Even if you’re familiar with the concept, it might be tricky to understand the link between Forex and VPS. If you’re unfamiliar with the term VPS, it will be even more difficult to understand.
Below we look at the link between VPS and Forex in more detail. We explain the uses of VPS for Forex trading so you know exactly what to look for when making a selection. Our goal is to help you find the best VPS for Forex that will help you accomplish the absolute most without breaking the bank.
What is Forex VPS?
Let’s get right to it then – Forex VPS is about the same thing as plain old VPS. Some companies attempt to market their VPS service specifically to Forex traders when it isn’t much different than normal VPS. Indeed, normal VPS is often a much better choice.
VPS stands for Virtual Private Server. You’ll sometimes hear it referred to as VM or Virtual Machine. In a simple sense, it’s a variant of web hosting.
The data center is the basic building block of VPS. These professional computer hosting facilities have the room and technology needed to host the physical hardware that requires computers to operate 24/7/365. Businesses directly connect to this data center through the use of virtualization technologies. This is done to save a whole lot of money and make hosting more manageable, especially for small businesses.
In many ways, VPS is similar to setting up multiple accounts on a single computer. All of them can be used at the same time on a separate operating system. Even if a single computer malfunctions, shuts down, or reboots with VPS, none of the others on the system are affected.
The reason that VPS is recently becoming so common in Forex trading is the same reason that its long been a staple in the business, financial, and IT worlds. All of these applications require stability and a fast connection. VPS hosting is able to match these requirements near perfectly.
How Does VPS for Forex Work?
A basic understanding of how VPS for Forex works is essential for any trader looking to invest in it. In the simplest sense, it provides a dedicated server that runs 24/7 without interruptions. It runs independently from your computer without any effort from your side.
Most VPS companies charge between about $10 and $100 per month. The rate you pay is based largely on the quality of the service you receive. While it’s not always necessary to invest in the highest priced VPS hosting, it’s generally advisable not to go with the cheapest option available.
There are three main entities when it comes to VPS. These include your computer, the VPS server, and your broker’s computer/server. These are all connected to each other via the Internet.
The chief benefit for the trader here is that the VPS connection guarantees a 24/7 connection, which is required when placing the actual trade. Indeed, depending on the software you’re using and the types of trades you’re making, a continual connection to a server is often always required.
What are the Benefits of VPS for Forex?
By now, you should have a basic understanding of both VPS and the uses of VPS for Forex trading. You should also have a basic understanding of the benefits of VPS Forex. We look at a few of the most important benefits that VPS can bring any Forex trader below.
1. Trade Anywhere
VPS allows you to trade safely and effectively from anywhere. You’re no longer relegated to trade from home or even from your computer or mobile home. You can use any device anywhere that you receive a network connection. You can log into your VPS to trade from any location.
2. Increase Security
The quality of safety and security that comes with the best VPS systems cannot be matched. These servers are checked on a regular basis to ensure that they’re functioning to the highest degree. Most companies also provide antivirus and other safety tools to all but guarantee your overall security.
3. Reduce Slippage
Speed is the name of the game when it comes to VPS. Your server will execute your chosen trades much more quickly than your computer. It is that much faster at automatically transmitting orders. The result of this is that you experience fewer delays and much less slippage.
Is Cheap Forex VPS Good?
Who doesn’t want to save as much money as possible? While most Forex traders are tempted to opt for the most affordable VPS option, this isn’t always the best decision. In fact, it’s almost always better to shell out more money for a higher quality VPS. Doing this will benefit you in both the short term and the long term.
The fact of the matter is that Forex trading is a business. And you’ll only become successful at it if you treat it like a business. This means you need to invest in every aspect of it. Skimping here and there will only cause problems down the road.
Investing in a quality VPS service brings you the best security and performance possible. It brings you a server you can always count on and trust. Whether you’re dealing with the smallest trades or those worth thousands of dollars, safety and performance should be of utmost importance.
So, in other words, cheap VPS for Forex is not usually the best choice. Though you don’t have to invest in the priciest VPS service around, going for a service solidly in the middle is a smart idea. The upfront price might be higher, but it will greatly benefit you long into the future.
How to Choose the Best Forex VPS
Choosing the best Forex VPS starts with doing your research. The information above will help you get a basic understanding of the specific aspects to look for in your VPS service. The following aspects are also important to keep in mind:
- Price – Consider your budget. Compare the services offered by different providers to find the best Forex VPS for the best price.
- Services Rendered – Check to see the specific services each provider offers. Be particularly sure to hone in on customer service. You should select a provider that offers excellent customer service, as the Forex market is often confusing at times.
- Security – Improved security is the main reason to go with VPS. So take care to note the specifics of their security offerings.
Our Top VPS Recommendations
There are a lot of great options for Forex VPS out there. You should look at a vast variety of these and select the one that best suits your individual needs and preferences.
There are a few VPS options we’ve found that work great for just about anyone. These services are affordable, reliable, and provide excellent security. They include:
So Do You Need VPS for Forex?
As you can see, there are a whole lot of great reasons to use VPS for Forex. But do you absolutely need it? Like anything else, it depends on your particular needs and preferences.
Many beginning Forex traders will be able to get by without VPS. They are trading in such small amounts and on such an irregular basis that the service isn’t needed. These beginning Forex traders are generally just trying to get a better feel for the Forex market in general.
Traders that are more dedicated to Forex will, however, almost always benefit from VPS. It ensures connectivity and provides the utmost in safety. If you’re using Forex to make money, instead of just playing around with it, then there is a strong chance that VPS for Forex will be greatly beneficial for you.