Now if you’re asking by hand, “do I need a VPS?” then I’m guessing you’re comparatively new to trading and someone you trust has said you need it.
Hence … should you get a VPS?
The reaction depends on what sort of trading you do.
For the inexperienced, VPS stands for Virtual Private Server. Which is in fact just a visualized way of saying a cloud based desktop PC.
Imagine a PC with the same familiar Windows desktop you’re accustomed to, located in a datacentre elsewhere in the world. To access this PC you would log into it using your local machine’s remote desktop option (type “remote desktop” into your start menu to find the gateway).
What is the compensation of trading Forex using a VPS?
In order of importance:
To ensure your MT4 platform stays online. It reduces the risk of loss as of power outages or internet disconnections. Constantly look for a VPS provider that guarantees 100% uptime.
Faster trade execution. By using a VPS in a similar location as your broker, you’re able to open and close trades much faster than would otherwise be possible.
Assistance setting up your automated software. Several VPS companies will help you install indicators or EA’s if you get stuck.
These benefits only apply if you’re trading using a robot or EA.
There is no benefit to clicking buy/sell inside your virtual private server. Think about the time it takes to click your mouse, then the signal to be sent from your PC to your VPS at the datacentre and then to the market will be slightly slower than if you’d opened the order directly on your local PC.
Now the only time a virtual private server is useful is when you are relying on software to trade, or manages your trades on your behalf.
Before going ahead with your Virtual Private Server, make sure you select one in a location that’s closest to your broker. To find your ideal location you can use the latency search tool here: https://www.fxsvps.com/latency-table/
FYI – “latency” is just a fancy word for the distance between the broker and data centre
Make convinced your broker is listed and select the location with the lowest latency, preferably below 5ms (milliseconds).