According to our survey and observation, there is a rise in VPS usage among retail traders. In this article, we are going to cover the key factors that make VPS such a useful tool in a trader’s toolbox.
What Is a VPS?
VPS stands for a virtual private server. A VPS has its own operating system, hardware resources, and a dedicated IP address.
What is so virtual and private about a VPS? VPS employs virtualization technology to split a server into multiple virtual servers and private means that each of the virtual servers is reserved for whoever owns it.
How Does It Work?
The steps are way simpler than you might think. Simply log in to your VPS with the credentials provided and you will be able to access the virtual server to carry out various tasks. For traders like us, we will be trading or running our trading strategy automatically on the VPS.
Once we log in to the VPS, we then install our trading platform, ie: MetaTrader 4 or MetaTrader 5 and it functions just like how a normal computer would, except it is now located somewhere that is significantly closer to the broker’s trading server and is way more secured.
Most importantly, it continues to run even when your home computer is turned off. This has important implications and they are outlined in the following section.
5 Reasons You Need a VPS
> Highest Availability
Most traders install and run their EAs or automated trading strategy on a VPS due to the constant connectivity. Take the VPS provider (Liquidity Connect) that we are partnering with, for example, they promise a 99.9% uptime and offer 24/7 customer support to match.
Traders can be worry-free by knowing that their automated trading strategies will stay uninterrupted by any unpredictable factors which could result in a dent in their bottom line performance.
> Ultra-low Latency
Latency refers to how long it takes for a packet of data to travel from one point to another. The longer the delay, the higher the latency.
Importance of Low Latency
Fastest Execution with Direct Access to Global Markets. When we trade the financial markets, every millisecond counts. Prices may change between the time when we place an order and when the order gets executed. As minimal as these differences may seem, these delays can sometimes make or break a trade and they would amount to a substantial impact on your trading performance in the long run.
Pain Point: Physical Location
Picture this. You are trading on your computer while in Singapore. You are essentially sending your orders from Singapore, and the information has to travel all the way across the globe to London where the broker’s trading server is located to get the trade executed.
Let’s get some numbers for reference.
Ping Statistics- Singapore to London. Source: https://wondernetwork.com/pings/London
Ping Statistics- Paris to London. Source: https://wondernetwork.com/pings/London
On the other hand, Paris which is comparatively closer to London has an average ping of just under 8.30ms. The difference is a whopping 30x due to geographical location and the physical distance between the trader and the server.
Combining VPS with our 100% STP execution, even the most price-sensitive trader has no complaints.
> Reduced Risks
VPS eliminates the risks associated with running your trading systems on a local computer including but not limited to:
- Power outages
- Internet connectivity
- System crashes
- Physical machine and infrastructure failure
You no longer have to be concerned about these risks anymore when you use a VPS for trading.
> Robust Security
Servers are housed in data centers and are professionally monitored. To ensure seamless operations and remove loopholes for security breaches, the servers are also outfitted with some of the most cutting-edge antivirus and DDoS mitigation software.
So How Do I Get a Free VPS?
1. Select your VPS plan- Gold or Platinum
2. Hop on our Live Chat or email us to request your VPS
3. Credentials will be sent to you
4. Start trading and meet the minimum required volume to enjoy free VPS
For more information and FAQs, kindly visit our website here
If you are a serious trader looking to take your trading to the next level, get your Free VPS now.