What is a Forex VPS and how to use it?

When you use forex VPS (virtual private server) hosting, you can run fully automated trading systems, including EAs (expert advisors), without needing your computer running. A good forex VPS can also eliminate any concern about downtime, crashes, lagging internet connection or any other technical glitch that can impact your manual and automated forex trading strategies. For many forex traders it can be vital to have their trading platform connected to their brokers servers 24-hours a day, 7 days a week.

What is a forex virtual private server (VPS)?

A forex VPS (virtual private server) is like a permanent link that connects your trading terminal to the wider trading network. You can use it to manually trade forex, but in most cases, forex traders set up automated trading applications on their VPS to trade for them.

A forex VPS is very useful as it allows you to run your trading platforms 24 hours a day without needing to have your computer switched on. A forex VPS is basically another computer that you can access remotely form your computer using unique login details.

Once you connect to the forex VPS, it looks just like windows does on your own computer and there you can open MetaTrader 4 and setup forex robots on your accounts there. You may even decide to use your VPS for manual forex trading which is also possible.

When you do not need to use the trading platform you simply disconnect from your forex VPS and it will keep running on your forex VPS so you can check back anytime. This is great as it means that you do not always need to have your computer running, which means you can save on resources or use your computer for other things.

How does a forex VPS work?

When you rent a forex VPS, you are basically buying a virtualized section of a server that can host your forex trading platforms such as MetaTrader or cTrader. From your forex VPS, you can analyse currencies 24/7, place trades, manage positions and automate certain trading actions. You can use it as if you were trading from your own computer.

You can also run multiple instances of your trading platform on your forex VPS so that you can test different forex strategies and forex brokers simultaneously to see which perform best. I have always had a forex VPS which is a really important tool for me to test my forex strategies.

Forex VPS
Forex VPS

How do you get forex trading VPS?

There are a few different places you can source a forex VPS. You could use a dedicated forex VPS provider, a company that specialises in cloud hosting, a MetaTrader VPS or even open a trading account with a forex broker that has free VPS hosting.

Cheap forex VPS

When it comes to forex VPS providers, it is quite a competitive industry so you can get a relatively cheap forex VPS if you take your time and shop around. If you are planning on just running one instance of MetaTrader or any other platform, then a basic entry level VPS should do the job.

On the other hand, if you want to run demanding trading strategies that are resource heavy and require the fastest execution speeds at all times, you might want to spend a little bit extra to get some dedicated resources. Forex VPS packages are usually separated according to the processor, RAM, memory and other important technical specs.

MetaTrader VPS

Another way you can get a forex VPS is from directly within your trading platform. Some forex platforms such as MetaTrader 5 (MT5) come with a built-in VPS. I have found this hit and miss to be honest. I much prefer to have a separate forex VPS as it feels less restricted. With a standalone virtual private server, you can run different trading platforms and even other software that isn’t related to forex trading.

Shared forex VPS

If you have friend or family member who is also into forex trading and you can trust them, you could consider sharing a forex VPS with them and splitting the costs. This might provide you with more options in terms of the quality you can afford. Just keep in mind that some forex VPS providers might have restrictions in place to prevent access to the VPS at the same time from different locations.

Forex VPS providers

You can also get a virtual private server from a separate company that deals with more than just forex virtual private servers. They could be a dedicated VPS provider or a hosting company that has branched out into offering VPS’s due to the increasing popularity of online trading over the years. I use such a provider and haven’t had any issues after almost a decade of service. Granted prices have increased during that time but that is not something unique to VPS providers.

Forex VPS trial

If you have your eye on a particular forex virtual private server but you are unsure if it will do the job or not, you could always as the VPS provider if they will give you a free trial. You may find that due to the competitiveness of VPS companies they may be willing to get your setup for a trial period. There is no harm in asking but if they say no, most forex VPS services only have a minimum subscription period of 30 days which should be plenty of time to see if it meets your needs.

Free forex VPS

You will see that there are some forex brokers with a free VPS. This is great if you are already using the broker or looking for a broker to get started with. If a forex VPS is something that you think you will need, choosing a forex broker that comes with a free forex VPS can save you money and make it more convenient to manage everything in one place.

IC Markets free VPS

The IC Markets free forex VPS is available to all IC Markets account holders who trade a minimum volume each month. It can save you money in the long term and prove itself to be very useful especially if you are running automated strategies that demand the very best trading conditions at all times.

There are no minimum contracts, they are extremely easy to use and you can be up and running with a free forex VPS in minutes. IC Markets is a very popular ECN forex broker with tight spreads, low fees and plenty of liquidity. They are one of my top choices of forex brokers when it comes to manual and automated forex trading strategies.

FP Markets free VPS

FP Markets have partnered with Liquidity Connect to provide their traders with a fully customised, low-latency VPS hosting solution. The FP Markets Edition VPS connects traders to the Equinix NY4 grid, implementing the latest cutting-edge technology with ease. Having the core infrastructure housed in the Equinix New York Data Centre, can greatly benefit active and algorithmic (EA) traders all over the globe.

This server-side solution includes state-of-the-art hardware and virtualisation technology, delivering a seamless VPS solution without incurring the cost or complexity of other trading clustering solutions.

To qualify for the FP Markets free forex VPS, you just need to reach a minimum deposit target and trade enough volume each month. If you do achieve these minimum amounts then they will be more than happy to cover your monthly subscription fee with the Liquidity Connect dedicated VPS provider.

How to choose a good forex VPS?

There are a few important things to look for when choosing a forex virtual private server. If you are running forex strategies that require the fastest execution speeds with minimal slippage such as forex scalping robots, then you might want to get the most powerful forex VPS you can afford.

If you are not trading that frequently and just looking for the convenience of having your forex platform hosted remotely, then really any forex VPS from a reputable provider should be sufficient.

However, I wouldn’t just focus on the price. Have a look at the technical specs such as the processor type and speed along with the available memory. These are factors that can determine how many platforms you can effectively run without any annoying lags when switching between them and conducting your trading activities.

The operating system the VPS is using is important because you want to make sure that it is something you know your way around. If it is a Linux VPS but you don’t even know what Linux is, you can probably rule it out right away. If you are a Windows user, then you might want to pay extra to ensure you can access a Windows VPS to make your life much easier.

The data centre location is another factor to be aware of. If your forex VPS is located on one side of the world but your forex broker has server on the opposite side, that wouldn’t be ideal. In general, the closer your forex VPS is to your broker, the better. This can help to reduce latency and speed up trade execution.

Aside from the above, you should read forex VPS reviews to see what other customers have to say. If the majority of the feedback is positive and genuine, that can be a good sign that they are a reliable forex VPS provider. If you can see countless complaints about the VPS going down or being hacked, you might want to look elsewhere.

Forex VPS advantages

  • 24/7 trading operations, even in the offline mode
  • Protection from power disruptions and network issues
  • Run automated forex strategies around the clock
  • Support for all expert advisors (EAs)
  • Low latency execution with minimal slippage
  • State-of-the-art technology for powerful trading conditions
  • Cost-effective with reduced power bills
  • Remote access to your trading platforms
  • Lots of different forex VPS packages to choose from
  • There are forex brokers with a free VPS

Forex VPS disadvantages

  • You might not know if it has gone down
  • There could be a security breach
  • May not be located near to your brokers server
  • Not all forex brokers have a free VPS
  • Might need to pay a monthly subscription fee
  • Can seem complex for beginners

Conclusion: do I need a forex VPS?

The answer is that it depends. If you are looking to run forex robots on the MetaTrader platform, then I think a forex VPS is well worth the monthly fee. This is because you can setup your forex robots on the VPS and let them run 24/7 without needing your computer switched on. This can save on ever increasing energy costs whilst you don’t need to worry about where your computer is or if it has run out of battery.

However, if you are trading forex manually and you are usually at your computer when doing so, then getting a forex VPS might not be as much of a priority. In saying that, some forex traders use manual forex systems that automatically analyse currency pair charts and send a forex signal when there is a setup via SMS or email. In this instance, you would still need your trading platform up and running for the manual trading software to analyse the forex market and send you signals. Therefore, a forex VPS could come in handy if you are in this particular scenario.

Hopefully by now you have a clear understanding of what a forex VPS is and how they work. As I said, I have been using one for many years now and it has been an invaluable tool for me. For the small price I pay each month, I am able to gather lots of data which enables me to conveniently compare forex robots and brokers.

If you feel like the cost is not warranted, perhaps consider a forex broker with a free forex VPS. Some of the best forex brokers out there come with a free VPS. The main issue being that you will probably need to meet a certain minimum deposit and trading volume threshold.

Free Forex Robot