If you’re dipping your toes into forex (foreign exchange) trading, you should find the most efficient platform to maximize your trading experience. Many experienced and beginner forex traders use a popular platform called MetaTrader. It offers many tools and interactive features for trading. However, more and more professional traders take an extra step and host their MetaTrader software on a virtual private server (VPS). Learn how you can use both tools to trade faster and avoid interruptions.
What is MetaTrader?
MetaTrader is a popular platform for trading forex and other assets. It’s a go-to choice for many investors because you can integrate MetaTrader with most brokers, and the platform offers user-friendly navigation.
MetaTrader has two versions: MetaTrader 4 (MT4), created mainly for forex trading, and MetaTrader 5 (MT5). MT5 supports forex trading, but you can also trade stocks, commodities, and other markets. While beginners can enjoy easy navigation, pros can benefit from many customization options, additional integrations, and tools.
Why would you want to host MetaTrader on a VPS?
Normally, you can download your chosen MetaTrader version from your broker’s website to your computer. Some brokers also offer web-based MetaTrader versions. With web-based versions, while you can access the platform from any device, your trading operations rely on the broker’s public servers.
There’s nothing wrong with a public server, but they tend to be more prone to high latency, interruptions, and cyberattacks. A virtual private server (VPS), on the other hand, is a private server just for you and the users you authorize. You can select the speed, storage, and bandwidth to get a forex VPS hosting best suited for your trading activity.
Other benefits of hosting MetaTrader on a VPS
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Uninterrupted operation
Shared hosting environments might suffer from high traffic and competition for resources. However, in forex trading every millisecond matters. A VPS gives you dedicated resources, limits most of the interruptions, and allows you to run your MetaTrader application 24/7.
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Reduced latency
When you host your MetaTrader activity on a VPS, usually, the hosting provider has multiple server locations. You can choose a location closest to you or your broker to reduce latency.
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Better security
When you host your trading software and other tools on a virtual private server, you can customize your security settings and set up firewalls and strong access authentication procedures. To maintain security, you should regularly update your security settings and any installed antivirus software.
What are the drawbacks of hosting MetaTrader on a VPS?
Hosting MetaTrader software on a VPS has many benefits, but you should consider the drawbacks. If you’re a beginner investor, know that a VPS requires extra tech skills such as basic server administration and security management to customize and maintain your server. You should also consider additional hosting costs. All in all, if you want a faster and more reliable forex trading experience and are willing to invest your time and a bit of money, hosting MetaTrader on a VPS can be a great choice.
