First, let’s understand what “forex” and “VPS” stand for. Forex defines what’s known as foreign currency exchange, and is a combination of “foreign” and “exchange”. Essentially, exchange rates on foreign currency are in continual flux. Buying one currency and exchanging it can produce marginal profits, and major ones in the right conditions.
VPS stands for Virtual Private Server. A Forex VPS is essentially like “renting” an apartment as opposed to owning a building. The server is massive and has a lot of space that can be partitioned for individual users, specific IPs being given to those sustaining specific service. Think of it like a P.O. Box that’s everywhere you are.
When a VPS user quits their subscription, the partitioned space on the collective server is wiped and a new IP assigned to the next subscriber. It’s different than the concept of “shared hosting” because you don’t have to share any resources with other websites. You have your own storage, your own OS, RAM, data limits, etc.
What this means for forex is that trading software can be effectively hosted around the clock regardless of the location of a potential trader. You get much better security through such operation, and doing things this way, rather than running your forex software from a stationary server you own, is generally going to be cheaper. Also, there are some specific advantages.
The Value Of Virtualization
Through virtualization, compartmentalized partitioning reserves specific space for your uses when you want it, at the price you can afford. You get to avoid big fees associated with trading “engines” that forex traders commonly incorporate. You’ve got to cut out your infrastructural costs if you’re going to be successful at forex, VPS options are a great place to start.
A facility has more costs, and additionally, if you need to make changes on the fly, you’ve likely got to be at that facility. You may have mobile network access, but that compromises you more than using VPS for mobile access would, even if you’ve got security measures in place. Plus, properly securing a stationary forex trading facility is usually more expensive.
With VPS, you can set up forex trading software and effect trades from wherever you happen to be. Because you’re using software on a VPS with its own connection, you don’t actually require traditional internet connection to trade! You can just access the VPS IP on your computer, relay data, trade with others, and get things done wherever you are.
One of the most common platforms through which such trading occurs is called MT4, which stands for “MetaTrader4”. Brokers providing forex solutions for varying clients will license such software, but keep in mind MT4 isn’t the only “game” in town when it comes to such software; it’s just one of the most well-known avenues for forex.
Through VPS solutions, traders get a competitive edge in terms of savings, and in terms of locational access. Since they can set up their software to trade automatically around the clock, this also ultimately saves a lot of time and aggravation. VPS and forex go together well, which is one reason options like forex VPS by Accuweb Hosting are specifically designed to this purpose.
Most reputable options in this arena are going to cost around $12 a month, and factors you can expect to be included in that $144 a year price include 24X7 trading capability in forex that is uninterrupted, exceptionally fast SSD drives, locations that are worldwide, reduced or eliminated latency, totally scalable options, and multiple available server locations.
A Truly Sensible Solution For Forex
There’s a lot to be said for using VPS as an enabling tool for your forex trading endeavors. It’s relatively cheap and provides many advantages. You’re probably not going to find a server whose energy costs are less than $144 a year, when all is said and done. Not if you’re running that server 24/7.
A basic desktop computer is going to cost you around $193 in electricity alone if you’re running it at full power 24/7—at least according to this Quora answer where energy costs are reckoned at 10 cents per KWH (kilo-Watt hour). The server itself will likely be much more expensive than that energy cost alone.
The takeaway is: for around $12 a month, you get a good deal on VPS solutions for forex. Unless you’re running an extremely large forex operation, or you’ve got some other angle, it’s hard to find a better way to conduct forex trading around the clock.