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How to set up a VPS for Forex trading Step by Step

How to set up a VPS for Forex trading Step by Step

Virtual Private Servers (VPS) have a huge impact on our online lives. Thanks to them, website owners don’t have to pay for expensive dedicated servers every time they go beyond their shared hosting plan. Businesses have cost-effective solutions for organizing, processing and managing business data, and even gamers can play their favorite online games without breaking the bank.

Forex traders are also finding use of virtual private servers. Let’s see what it is.

Why should you use a VPS for Forex trading?

Forex trading takes place on the internet, so a web-connected device is required. At this point, you have several options.

You can install a trading app on your phone and many traders enjoy managing their portfolio on the go. As convenient as it is, some people still prefer a larger screen than a desktop or laptop computer.

However, there are traders who spend money on virtual private servers and manage their trades there. They do this because trading on a VPS has several significant advantages over trading on a personal device. Let’s explore them in a bit more detail.

Speed

Trading apps are generally not very resource intensive, but if you want good performance and excellent trade execution times, you need the right hardware. A powerful VPS can give you just that.

On your home PC, the trading platform should share the same resources with all the other software you have installed, while if you dedicate your entire VPS to Forex trading, you will have enough power to eliminate any possible delays or performance drops.

Trade execution times are also affected by upload/download speeds, and again, VPS is on top of the alternatives. It has an internet connection many times faster than the broadband service you have at home, so when an order is placed through it, the order will get to the broker faster.

Reliability

Your VPS runs on enterprise-grade hardware located in a carefully controlled data center environment. This is monitored by a team of experts who oversee it and ensure any issues are addressed before they impact performance.

Servers and network components are built using high-end equipment and failures are very rare.

At home, your operations can be affected by power outages or connectivity issues. With VPS, this problem is almost eliminated.

Sustainable business

Forex trading didn’t stop for the night. Trades are executed 24/7 on weekdays, and because they don’t want to miss a potentially profitable trade, tech-savvy traders have created Forex robots – automated scripts that make investment decisions for you based on various technical signals.

Your VPS is up and running 24/7, so you can set up a Forex robot in it and let it work hard. This way, you will be able to trade and profit while you work, travel and even sleep.

How to choose a Forex VPS?

There are a few things you need to keep in mind when choosing a VPS for Forex trading. This should be your strategy.

1. Find the right platform VPS

If you want to place an order on a Forex exchange, you need a trading app. There are many applications, all of them work with different brokers. It is important to understand which broker you will be working with, the commission you will be paying, and under what conditions you will be trading.

After choosing a trading application, you need to check which type of operating system works. This is one of the vital things that you need to pay attention to when choosing a VPS.

2. Check hardware requirements

Every trading app has a number of system requirements and making sure your VPS covers them is critical to the functionality of the platform. Keep in mind that the larger the volume of trades you make, the more hardware resources you will need, so be sure to spare a little extra to ensure excellent performance and fast trade execution.

3. Compare your options

There are several VPS on the market. You can choose between managed and self-managed virtual private servers. With a managed VPS, your hosting provider will be responsible for the initial setup of the virtual machines. You will have less to worry about, but the services are more expensive and you will need to contact the host and ask if it is possible to trade Forex.

Self-running machines are usually less expensive, but come with a few things already set up. You have more control over the server customer service team response.

How to install MT4 on your Forex VPS?

Once your new Forex VPS is ready and configured, all you need to do for it to work is to install your online trading platform. Anyone who has ever been interested in Forex trading has probably heard of Meta Trader 4 (MT4). It is a trading platform that emerged in 2005 and, despite its age, continues to be the most popular application of its kind.

Some Forex VPSs come with MT4 already set up. If not, you can easily do it yourself.

MT4 was developed from the ground up to run on Windows. You could theoretically boot it on a Linux or macOS machine using Wine, a compatibility layer that lets you run Windows software on Unix-based operating systems, but ideally we recommend a Windows VPS.

Once you have it, you can follow the steps below:

1. Connect to your VPS

Since you are using a Windows virtual private server, you will connect via Remote Desktop Protocol (RDP). RDP was developed by Microsoft, so if you use Windows on your home PC, you have a built-in client that can communicate with your VPS.

The easiest way to get started is to open the Start menu and type “remote desktop”. The Windows client will appear as a suggestion.

When you open the client, you will be asked for the server IP and login credentials.

This information should be provided in the welcome email you receive from your host. After entering your username and password, you will connect to your VPS and see its desktop on your home computer screen.

2. Download and install MT4

Next, you need to install Metatrader on your Windows VPS. Often, the installer is provided by your broker. Otherwise, you can download it directly from the official MT4 website.

Make sure you select the correct platform before downloading and running the installer.

All you have to do is read the license agreement and click Next to accept it.

The MT4 installer will automatically start the installation and in a few moments the trading platform will be set up and ready to use.

3. Configure your Forex robot

With Forex robots (also known as Expert Advisors or EAs), you can take advantage of the fact that your VPS works 24/7 and you can trade without interruption. If you are an experienced trader and have some coding skills, you can build your own robot and configure it to make decisions based on your trading style. Alternatively, you can get trading robots and EAs directly from the available markets on MT4.

There are many options available. You have premium robots (with prices ranging from under $100 to a few thousand), but there are also some free alternatives. They can do anything from trading based on complex technical analysis and signals to simply copying what experienced traders do. After creating an account, the installation process is quite easy.

Conclusion

Being successful in the Forex market really depends on your ability to pay attention to details. It’s a crowded place where everyone is trying to maximize their profit, so beating the competition is no easy feat.

A Forex VPS is one of those things that can give you the edge you’re looking for, so if you’re serious about trading, it’s definitely worth considering getting one.

FAQ

How do I connect to a Forex VPS?

The method you will use to connect to your Forex VPS mainly depends on the server operating system. However, since most trading platforms run on Windows, you will most likely be using Microsoft’s Remote Desktop Protocol (RDP).

Do I need a VPS for Forex trading?

In theory, you can trade from your home computer or smartphone. However, a VPS provides you with a more secure environment, a good internet connection, and a reliable online service 24/7.

Is the VPS always on?

Whether physical or virtual, servers are meant to be powered on and connected to the Internet 24/7. They run on robust enterprise-grade hardware that rarely fails, and the hosting provider employs a team of experts to ensure that if something goes wrong, the problem gets resolved quickly.