If you’ve ever read that brokers offer you a free VPS if you invest a certain amount of money, or just lists of brokers with VPS, or with good VPS, and you don’t know what a VPS is, you’re in the right place.
A VPS is a Virtual Private Server. You usually hear VPS when it comes to web hosting, but this is not the case.
A virtual private server can be useful for a trader, depending on the method of trading, and whether or not the trader relies on automated services. More than anything, it’s better for traders who use expert advisors.
Before I started crypto trading I was a Forex trader, or I still am, but not that frequently anymore since I’m more focusing on crypto. When I was trading Forex full-time, I was used to use a virtual private server to let my trading machine run. Let me explain in more detail why I use that setup for trading and how exactly those systems work.
A VPS is a special type of server that is hosted on the same computer as other VPS, which is why the term virtual is used. Although several servers are located on the same computer, they can operate independently. Explained differently, let’s imagine we have a computer with 64 GB of RAM. Using virtualization technology we can divide this computer into 8 “sub-units”, each with 8 GB of RAM, each with a different installation of windows, linux (or the operating system we want).
It is possible to interface with each of these “sub-units” even if they are completely separate systems. A user could restart, or even their “sub-unit” could break, yet it would not affect other users.
So, the Question now is, why would you use a VPS for Trading?
Here are some reasons why you might want to start trading with VPS instead of directly with your computer.
This private server will run around the clock, every day, without interruption, even if the trader’s computer fails, this server runs independently. This way you will not have any more problems like your internet working very slowly, or not working, problems with electricity and problems with your computer in general.
An overview can be found on http://www.peer-server.com/vps-for-forex-trading/.
For example, let’s say you are operating, if your computer stops working for some reason, you can access your VPN from another computer without downtime, no data loss, and no need to reconfigure everything.
Another reason, if your internet connection goes wrong, and fails for some reason, the VPS is still connected to your broker.
One more reason, if you are a trader with more than one account, and you execute trades from several places.
In short, traders use VPS mostly to allow automated trading by expert traders, a VPS allows them to execute trades non-stop 24 hours a day, 7 days a week. Anyway, if you are a trader who uses expert advisors, and you want them to run constantly without interruptions, then VPN hosting is a good option.