Intro: Many professional retail forex traders use a forex VPS to enhance their trading. There are many advantages to using a suitable VPS for trading over a shared hosting or your own PC, Mac, or other devices.
Here we are going to fully explain what a VPS is, what the use of VPS in forex trading is, Why VPS is better for trading than shared hosting or personal PC, what you as a forex trader need to look for in a VPS service, and then we will answer some common questions about all this.
What is a VPS in the first place?
VPS is short for Virtual private server, and it is exactly that. We’re not saying you didn’t know that, but it’s always good to go over some of the basics. It makes things clearer.
Why Forex VPS is the Best Solution for Traders
There are various types of hosting or remote computers out there that a forex trader can use, but for the sake of this article, we will break it down into five categories:
A dedicated server is a complete, powerful computer in a datacenter, connected to fast high-bandwidth internet, fully in your control. If you are here reading this, you probably are not there yet for a complete dedicated server. It is much more than you need and costs much more than you need to pay.
In the world of forex, brokers and enterprise market players usually rent dedicated servers. They can afford the cost of independence and high control, but you can do very well with much cheaper solutions.
Shared hosting is maybe the cheapest solution, but it’s not good for trading. You basically share all the resources on a server with some other accounts, but your software are prone to starvation if other users are using too much resources, or there are too many users on the same server, or a certain software is clogging the system. Either way, as a forex trader, it can hurt your performance greatly. Especially if you are doing automated bot trading.
VPS is by far the best solution for Forex trading. It’s a combination of shared hosting and dedicated hosting, combining their best features, and avoiding their worst downsides.
A physical server is broken down into several independent Virtual Private Servers. It’s virtual and lighter than a real server, so it’s much cheaper. It’s private, so no one can see your data or take part of your dedicated resources. It’s a server, meaning it’s a remote, powerful, reliable computer in a datacenter, connected to high-speed reliable internet. It gathers everything you need for your forex trading in one place.
Cloud hosting is very similar to VPS, but more flexible. You just pay for the resources that you actually consume, and it’s generally more reliable than VPS because there’s a huge network of servers forming a cloud, not one single physical server divided into a few VPS.
The downside of cloud hosting for forex trading is higher latency compared to a simple VPS, due to cloud backbone structure and its accounting software. That, and you do not have full root access to your server storage and permissions. And of course, cloud is not as cheap as VPS.
Remote desktop is not much different from a VPS. Essentially, there’s a virtual desktop environment that you connect to and run your forex trading software such as MT4 and MT5.
However, not all remote desktops are created equal. If your desktop virtualization is a “shared” model, it has the same downside as a shared hosting: other people on the same server will eat into your resources. Actually, this will happen more frequently on a shared desktop virtualization than on a shared hosting.
What to Look for in a Forex VPS?
The answer to that, comes from the reasons that forex traders use a VPS in the first place.
Forex traders use a VPS for guaranteed uptime, higher reliability, much smaller latency, better protection against cyber attacks, eliminating power outages, avoiding hardware failures, and faster internet, and more. Let’s dig into them to see what these words mean. This will help a lot in choosing the best Forex VPS for you.
Latency in Forex VPS for Trading⌛
Latency may be the most important factor for a forex trader. Latency is the time it takes from giving a command or sending a request and the time it is received on the other end. It’s those few milliseconds of delay between telling your broker you want to put in an order, and the time the broker receives your request.
If that delay is large, by the time your order is processed the prices may have changed. Especially in volatile markets like cryptocurrencies, this may mean huge losses. Basically, you want to limit slippage as much as possible.
A stable machine that is running smoothly and is connected to a high-speed, low latency internet at a datacenter near your broker’s can satisfy this need.
So here’s two facture to consider: reliability of the datacenter and the VPS provider, and close proximity to your broker’s servers.
Protection against Cyber Attacks🔐
Although, compared to VPS, cloud hosting fares much better against high volume attacks like DDoS attack, it is unlikely that your little Forex trading machine be the target of one these attacks.
As for other types of attacks, you can easily limit their chances greatly by limiting the use and connections on your Forex VPS to just trading on Forex markets. A managed Forex VPS service does most of that by default. With a Forex VPS, you can protect your data and trading robots just fine.
No Power Outages🔌
This is simple. Datacenters generally have backup power sources for power outages. Unlike your PC, laptop, or handheld device.
Avoiding Hardware Failures ⚠
Hardware failure can happen to any computer. But your remote VPS in a datacenter doing only one job is much less likely to encounter a failure than your own computer. Especially considering that most servers on datacenters boast powerful and advanced hardware, like SSD storage that also helps with your machine’s speed.
Faster Internet for Your Forex VPS🚀
VPS Servers in datacenters are generally connected to 1Gbps low latency connections. Choose a VPS in the same datacenter as your broker’s (or a near datacenter) and you’re practically working from there. In addition, datacenters take a lot of care in keeping that connection fast and alive. Just make sure that your Forex VPS provider cares too.
Forex VPS Reliability and Uptime☑
All of these factors, alongside the fact that you will have a dedicated (virtual) machine running forex trading scripts and software exclusively, means you can make your trades with a surer heart. Forex VPS services usually guarantee uptime of the VPS at a high level, generally around 99.9%.
What Are the Best Forex VPS Providers in 2021?
There are many VPS providers in the world. Some have various products and services, but the ones that focus on selling VPS usually do it better.
There are websites that exclusively sell Managed Forex VPS to forex traders, but this niche targeting also means that they usually charge you extra because they now you are working on money.
There are also some brokers that offer Forex VPS to their clients. These VPS are nearly surely near their own servers and provide the least latency, but they may or may not have everything you as forex trader need in your VPS.
Now let’s review some of the best Forex VPS providers.
RouterHosting is a general VPS provider that also works a bit deeper on niche VPS types, especially their Forex VPS service which is the point of this article. They usually low-cost VPS services; that also includes their Forex VPS.
💠They offer several types of Forex VPS at very cheap prices, among the cheapest on the market. Compared to similar plan specs and hardware, they offer the cheapest Forex VPS on this list.
💠Their starting plan comes with 2 CPU cores and 2GB of memory, with 30GB of NVMe storage and 3TB of bandwidth for $7.99/month. All their plans come with RDP and VNC remote access.
💠RouterHosting accepts payment through PayPal, PerfectMoney, and cryptos, which few other VPS providers do. This means you can pay with Bitcoin, Tether, ETH, BNB, etc. which could be great for those forex traders who deal in crypto coins.
💠The greatest thing about their Forex VPS plans is that you can choose any version of Windows for free, even on starter plans. Other providers offer only a couple of versions, and some only offer Windows server 2008 or 2012 on their starter plan.
On top of all that, they offer a 7-Day Money-Back Guarantee.
💠They provide Forex VPS servers in many convenient locations for forex trading all around the world and around the US including Washington DC, Seattle, Phoenix, Los Angeles, Miami, San Francisco, Dallas, New York City, Pittsburg, Chicago, London, Frankfurt, Amsterdam, and Singapore.
ForexVPS.net is one of those websites that exclusively targets forex traders. They provide Windows server 2012, 2016 and 2019. They offer VPS in important forex trading hubs such as New York, London, Manchester, Zurich, Amsterdam, Frankfurt, Hong Kong, Singapore and Tokyo. Their starting plan with 2GB of RAM is priced at $34.99, which is not at all cheap compared to many other providers. However, this plan only offers Windows Server 2012.
FXVM is another VPS provider that exclusively works on forex virtual machines. Their plans are comparatively cheaper than that of ForexVPS’s. They only offer three plans. Their starting plan at $19 is clearly cheaper, but it comes with only 1 CPU core and 1.5GB of RAM which is not that strong really.
HostWinds is a general VPS provider. They do not offer Forex VPS. What they offer is cheap Managed Windows VPS that you can get, and then install your trading software such as MT4, MT5, and cTrader, install your bots, and start working.
💠Their starting plan offers 1 CPU core and 1GB of RAM with 30GB SSD, priced $7.99 on an offer. This is definitely cheaper than a similar plan from FXVM, but it is a general-purpose Windows VPS and you have to do some of the work yourself before you have your Forex VPS trade-ready.
AccuWebhosting is a well-known VPS provider. They go for simpler plans at low costs, but they do not exactly have “Forex VPS” plans.
💠As a credible VPS provider, they offer good support and uptime guarantee. Their Windows VPS plans start at a simple 1 core 1GB VPS machine with 1TB of bandwidth, with only Windows Server 2012 available as its OS.
This plan costs you $10 on a discount, which is still slightly higher than HostWinds’. However, it is quite cheaper than what exclusive Forex VPS providers offer. This plan includes Remote Desktop access as well.
💠They offer VPS in several locations in the US and around the world, including Denver, Virginia, Ohio, Oregon, Mumbai, Seoul, Singapore, Sydney, Tokyo, Montreal, Frankfurt, Ireland, London, Paris, and JHB in South Africa.
ReliableVPS is also a general VPS provider that works on some special VPS types, which include Forex VPS. Their Forex Starter VPS looks good with 2 CPU cores and 8GB of memory, coming with 5TB of bandwidth. They too provide RDP access to the VPS.
💠The upside of their plans is that they come with some trading tools pre-installed. Their starting plan is priced at $25 though, which is not in the cheaper range.
💠Their downside? Apparently, they only offer their Forex VPS services in one location: Manhattan, NYC.
OneVPS is again a general VPS provider who does not have specialty Forex VPs plans. Their basic plans are in the cheaper range. The smallest ones start at $4 monthly, but they look too weak for Forex trading with under 1GB of RAM.
💠Their smallest VPS with at least 1GB of memory comes with 2 CPU cores and 80GB SSD storage. This will cost you $9/month.
Like the first one on the list, RouterHosting, they too have a 7-day money-back guarantee policy.
TradingFxVPS is once more an exclusive trading VPS provider. They offer a Trial VPS Hosting at $3.99 for 7 days, which is good for testing. But of course, if you decide not to upgrade to a full plan after 7 days, there is no money-back. This trial plan only includes Windows 2008.
💠Their real plans start with a Standard Plan, which includes 1 core, 2GB of memory, 30GB NVMe, and Windows 2012. The Standard plan is $25 a month, which is comparable to similar specialty providers.
8-VPS from Forex Brokers
If you are looking for a good VPS service to enhance your Forex trading, you have various choices of relatively cheap common Windows VPS services, specialty Forex VPS service providers, and even some
brokers who offer VPS to help their own clients.
✅If you are new to Forex trading, we recommend you start with a cheaper solution or a trial. And if you are looking for a cheap solution that does the job well, or want to test a solution, the one we put at the top of the list, RouterHosting, looks fine considering their very cheap prices, and that they provide any version of Windows for free, with a money-back guarantee. The fact that they cover nearly all the world and accept crypto payment is the cherry on top.