First, what is a VPS?
A VPS is a virtual computer system that can be remotely accessed from any other distant computer or smart phone.
People use a VPS for various reasons. They travel a lot and they want to have a full windows environment on their smart phone. Or they need a computer up and running 24/7 for a task, and they don’t want to use their own computer for that.
A VPS is useful for Forex Traders as well. Below some reasons why.
1) Away from home
If you are a Forex trader and you travel a lot and you still want to trade, then you have to take your trading computer/laptop with you. But that is not always desirable or possible.
Mobile apps to trade Forex from are not the best solution, as they don’t have the full functionality of a desktop trading platform (by far not).
Then a trading desktop installed on a VPS would be a much better fix.
Simply connect from your smartphone, and you have access to your full trading desktop wherever you go.
2) You have automated your trading
Traders who have automated their trading also prefer to trade on a VPS.
Automatic trading software only works if the trading platform is running, and traders that don’t want to leave their own computer running day and night go for a VPS.
3) VPS saves electricity costs
A normal laptop consumes about 60 watts of electricity. If you let it run non-stop for an entire month, then (in my country) the electricity costs will be about $10 for keeping it running.
The cheapest VPS plan from Router Hosting is about $8 per month.
This means that letting your trading platform run on a VPS, while leaving you computer switched off for an entire month will eventually save money, a $2 to be exactly. Plus you have a VPS on top of that as well.
4) VPS is robust and fast
Another good thing is that VPS systems are very robust and most of them are up 99.9% of the time.
Especially if you have automated your trading, you cannot have power outages or disconnected internet. Trading on a VPS will be a good decision then.
Also, VPS systems are generally faster in executing trades, especially if the VPS is located close to the servers of the broker. This fast execution results in less slippage in trading, and so more profit.
Some additional non-Forex advantages of VPS
- A remote windows desktop computer to work on at a distance when not at home.
- The VPS has storage capacity for files you want to have access to when travelling.
- A Windows environment on your smartphone.
VPS plans are not free of charge, and they can even be pricey.
What is a good Forex VPS?
I work on the cheapest VPS from RouterHosting for less than $10 per month (the Micro plan).
I have 4-5 instances of Metrader 4 running on it. On each of them I have a couple of charts open, all loaded with indicators and Expert Advisors. And I have never experienced any noticable slow-down.
Sometimes I am programming Expert Advisors on this VPS as well, with the Metatrader platforms running in the background, also without any problems.
The ping of the connection VPS-broker is lower than the connection from my home computer-broker, so the orders are faster executed on the VPS than on my computer at home.
So in my experience, the cheapest VPS plan you can get will very likely be the best one for Forex trading.
VPS hosting companies tend to recommend the more expensive VPS plans, which is quite logical because they want to make money. But for Forex trading the cheapest VPS plan is good enough in my experience.
Is a VPS something for you?
For a $10 a month I would say:
- Yes, if you have automated your trading and you don’t want to leave your computer up and running 24/5.
- Yes, if you travel a lot and you want to trade on a smartphone.
- No, if you only trade when you are at home, and you can use your own computer for it.
How to order a VPS at RouterHosting
If you are interested in a VPS, then below I will show you how to order one at RouterHosting and to connect to it on a Windows desktop and an Android Device
1 Go to RouterHosting to select a plan. (The cheapest plan, ‘Micro plan‘, is good enough for Forex Trading.)
2 After selecting the plan you land on below screen:
3 First choose the billing cycle you prefer. Recommended is to choose ‘monthly’, as you may want to test RouterHosting out first. Note that the billing cycle affects the price.
4 Enter a Hostname for the server (just pick a name, as the Hostname is not very important).
5 Regarding Region: best is to select a region that is as closest to the location of your broker’s servers as possible, for the quickest connection and execution of orders (lowest ping). Check with your broker. Most brokers have servers in New York and London.
6 Operating system: Not of greatest importance if you are only going to use the VPS for Forex Trading, just pick one.
7 Click on ‘Continue‘. Next confirm your order and click on ‘Checkout‘.
8 On the next screen you have to enter your contact details.
9 Next choose the payment method you desire, check “I have read and agree to the Terms of Service” and click on ‘Complete Order‘.
10 After the payment is confirmed, you will get an email with login details.
11 Wait for 1 hour before connecting to your VPS for the first time, as windows is being installed on the VPS, which can take some time.
Connect from Windows 10
1 Open the email with the login details you have received form RouterHosting.
2 Go to Start in Windows 10, and type: ‘Remote Desktop Connection’ and open this app.
3 A pop-up window appears (looks like below image) . Enter the IP address of the VPS, as given in the email, and press ‘Connect‘
4 In the window that follows (like in below image), enter the Username (probably “Administrator”) and the Password, both given in the email. Check the “Remember me” box and press ‘OK‘.
5 Done! You should have access to your VPS in Windows now.
Connect from Android
Connecting from an Android device to your VPS is not much different than connecting from Windows 10.
Just download the Remote Desktop Client from Google Play and follow the instructions.