If you are planning on running automated forex strategies, then you will probably need your trading platform up and running on your computer at all time. This can be inconvenient and expensive. Not to mention if your internet connection isn’t reliable, your trading results can be affected. This where a forex VPS can come in handy. It allows you to remotely run your forex robots without any hassle. You don’t even need to pay for one if you use a forex broker with a free VPS like those that we will take a look at in this guide.
What is a forex VPS?
A forex virtual private server (VPS) is basically a remote computer where you can install and run your trading platforms and other applications. It is hosted in the cloud so you don’t need your computer running for it to work. You simply login to your forex VPS as and when you need to. There you can manage all of your forex trading accounts across multiple trading platforms. You can trade forex manually on there or run your automated systems 24/7 around the clock.
How does a forex VPS work?
Think of a forex VPS as having your operating system constantly up and running even when your computer and mobile phone is switched off. A virtual private server is deployed remotely in a provider’s data centre, which is why they’re referred to as “virtual”.
These virtualized servers are owned and maintained by hosting providers. Such companies sell virtual space within their data centres for private use by customers. You can use it to manually trade currencies, but in most cases, traders set up automated trading applications that do the work for them.
The virtual server operates as a standalone server with the customer as an administrative “super user” with root access to the server. The servers then allow customers to run instances that allow them to deploy, maintain, and manage applications, such as trading platforms.
Do I need a free VPS to trade forex?
There are quite a few advantages to using a forex VPS over a regular computer. The main one being that with a virtual server, your forex robots can be running all of the time, increasing the number of trades they execute every week. This can also be useful if it is not feasible to always have your computer switched on and if you have a poor internet connection. If your internet was to drop out during a trade, it could cause unnecessary losses.
In addition to this, a VPS can place orders with minimum latency thanks to its high-speed internet connection. This is especially the case if the VPS is hosted close to your broker. If you are using forex strategies that require the quickest possible execution speeds at all time, then a dedicated forex VPS could cause quite a different in terms of performance. I have seen forex scalping strategies perform better on a low latency forex VPS.
Another reason you might need a forex VPS is because as they are situated in a data center, it’s highly unlikely that it would suffer a power outage or hardware failure. Most VPS providers will mention 99.9% uptime which can be more reliable compared to your home computer. If your battery dies or internet goes down, you might not be able to manage any open positions or place trades that you had your eye on.
How to choose from forex brokers with a free VPS?
Requirements
The first and most obvious thing is to check and make sure the forex broker has a free VPS. This will narrow your search down significantly as there are not that many free VPS forex brokers to choose from. From there, you should check the minimum requirement each broker has. Some will say that you need to make a minimum deposit and trade a certain volume each month. Make sure that this is realistic and attainable for you.
Whether you can achieve this or not, you should check how much it would cost to go directly to a forex VPS provider and see if it is worth the commitment to meeting the brokers minimum requirement each month. You wouldn’t want to feel pressured into making trades just to meet a target for access to a free forex VPS. That being said, if you did not meet the minimum trading volume, most brokers would simply deduct a flat fee for the VPS each month.
Reputation
You will want to see what forex VPS provider they are using to make sure they are credible. Otherwise, you can defeat the object of having a VPS if it is going to be breaking down all of the time. I would look at what other customers have to say and how long the company has been around for.
Specification
Check to see the available VPS specifications as well. If you plan on running just one trading platform, then even the most basic forex VPS should do. If you want to run multiple instances of the trading platform with some demanding forex strategies, then you might want to see what high spec options they have available. Things to look out for include the operating system, processor, memory and storage. There is no use having a Linux VPS is you only know how to use Windows.
Regulation
Once you have established a few suitable free forex VPS brokers, you will want to narrow down your options further. I would look for a regulated broker as they will be able to give you some protection in case things were to go wrong. Even though unregulated brokers might be able to provide high leverage and some other unique features, they cannot offer the same peace of mind.
Features
Other key broker features to check for are the currency pairs available to trade, other financial instruments, trading platforms/apps, trading tools, educational resources, funding options, account types, execution model and support.
Who is the best free VPS forex broker?
Hopefully by now you have a better understanding of forex virtual private servers and the benefits that they can provide. If you are short on time and just looking for a forex broker that has a free VPS, IC Markets is my top choice. They are one of the best forex brokers for manual and automated forex trading in my experience. They have plenty of liquidity from deep liquidity pools, which means that you can get your trades executed quickly at the best possible prices at all times with minimal slippage. They have tight spreads and low commission fees along with a great variety of account funding options and excellent 24/7 customer support.
Free forex VPS pros & cons
Pros
- Run your forex robots around the clock
- Do not need your own computer switched on
- Frees up your computer for other tasks
- Can save on energy costs
- Access at your convenience
- Reduce latency and improve execution speeds
- Minimal to zero down time
- Save fees from paying a forex VPS provider
- Manage everything under one roof
Cons
- Minimum deposit requirements
- Minimum trading volumes each month
- Restricted choice of forex VPS providers
- Might not be the most powerful VPS you can get
- The offer could be pulled away at anytime
Conclusion: should I use a forex broker with a free VPS?
I have had a forex VPS for many years now and find it to be an invaluable tool. It is not a free forex VPS but it allows me to simultaneously run multiple instances of the MetaTrader platform so I can test as many forex robots and forex brokers as I need to. It has never given me any issues and is excellent value for money. I don’t mind paying a reputable forex VPS provider a small monthly fee as I need to be able to compare forex brokers for writing our broker reviews and testing different forex strategies.
However, if you are looking to save some money but need a forex VPS, then a forex broker with a free VPS can be a perfect solution. Just keep in mind that even if you get a free forex VPS, you might need to maintain a minimum trading volume each month. This is probably going to be a lot more than it would cost to purchase a VPS. Otherwise, the broker wouldn’t be able to cover the cost if everyone subscribed for a free VPS. It is worth noting that some forex brokers provide a discounted VPS rather than a free VPS which can also be an option to save you some money.
Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading! Read more about me.
