VPS refers to Virtual Private Server and VPS hosting is a bridge between shared and dedicated hosting. Typically, VPS is associated with hosting of web and not forex trading. However, VPS may be of help to a forex trader, depending on the trading method employed by him and whether he/she relies on automated services. Read on to find out more about the differences between VPS web hosting and VPS for forex trading.
VPS Web Hosting
VPS hosting can be defined as a server that has its own copy of the operating system and server resources that are allocated within a larger server. This means that a physical server residing within a data center is made use of for VPS hosting. The server is divided into several spaces and each space acts a server by itself. An account holder sees only his/her virtual environment. He/she can reboot his/her server and use it as his/her dedicated server.
Many people prefer VPS hosting, even though they do not require all the resources allocated to them, because they can control their environment better compared to a shared hosting. Actually, VPS hosting is great way to start with for people who need dedicated hosting, but are not technologically very savvy. It helps them to enhance their skill without committing too much money upfront.
VPS Web Hosting Benefits
The advantages of hosting websites on a VPS include the following:
- It is less expensive compared to a fully dedicated hosting plan that makes use of a physical server.
- It can be customized for meeting users’ specific needs so that you end up paying only for what you need.
- It is scalable. Users can start off with the minimum resources that they need and then enhance it as the business grows.
- Users can exercise more control over their virtual server compared to a shared hosting service. Often, users are provided with root access as well as the capability to use scripts. This may not be available in a shared hosting environment.
- For most problems, users get the same level of technical support as in the case of shared hosting.
- Users can choose semi managed hosting or fully managed services.
Though VPS web hosting is a great way to enjoy the services offered by a dedicated server without the associated costs, there are some disadvantages as far as this type of hosting is concerned. The first and foremost thing is that it is more expensive compared to shared hosting though it may be less expensive compared to dedicated hosting.
On the services front, the issue involved is a lot greater. This is because some VPN web hosting services providers do not allocate resources properly. This can cause problems in the case of sites that use resources at peak levels. This often happens because of overselling of space by VPN providers, thinking that all account holders would not use all of the resources allocated to them.
Summarizing, the key advantage of using VPN web hosting is the complete control users can exercise over the hosting environment.
VPS for Forex Trading
VPS might be of relevance to forex traders, depending on the method employed and use of manual or automated services. Here are a few key reasons as to why forex traders can consider using a VPS service for trading forex of using traders’ own personal computer directly.
As far as forex traders are concerned, speed of execution of orders is of great importance, especially in the case of traders that employ automated trading systems. In order for the trading applications to achieve maximum performance, they should be as close to the networks as well as services (including that of brokers, financial institutions, signal providers and account managers) they have to interface with. Commonly, these networks are all located at some key locations in the US and the UK.
Forex VPS hosting is the most affordable as well as easy-to-manage method by which traders can obtain the connection speeds that are close to the best available as far as trading applications are concerned. This results in significantly improving the order execution speed for trades.
Adequate security is not only a matter of great concern, but also critical for all most applications irrespective of whether traders use MetaTrader 4 platform or highly advanced backend financial software. VPS for forex trading offers some implicit security benefits by offloading traders’ software to a remotely located system. Further, VPS providers update templates on a continuous basis to protect users from threats as well as intruders.
On the hardware front, VPS providers take a lot of care to avoid critical failures. They monitor the core network components and hosting servers round the clock and resolve issues as and when they arise with the help of technical experts.
A website hosted from a computer in an individual’s home or office – instead of a website hosting server – might not be reliably accessible. The reliability of the trading software improves a great deal when it is shifted to a dedicated hosting solution or VPS. The protocols and tools that are built into the services offered by VPS providers allow traders to connect to their forex VPS from all locations without the need for any extra configuration or setup. This allows forex traders:
- To start MT4 and other applications on their remote VPS once and then remain online 24/7 without reboots of their local PC or Internet disconnections affecting their trades.
- To access their trading platform from different devices (or on-the-go) such as their PC, laptop, phone and tablet without any interference with the trading software that is running on their VPS.
- To set up multiple platforms as well as accounts on their VPS and delegate user access so that many people can simultaneously view the desktop from separate locations.
#4: On-demand Upgrades
VPS forex hosting enables traders to eliminate the work involved in estimating capacity requirements as well as planning hardware upgrades, etc., as resource allocations are dealt with in the cloud. VPS providers can upgrade, downgrade or provision new systems on on-demand basis. In this method, traders would be paying only for the resources they need.