What is VPS?
Suppose you want to make a website available online. In that case, its files need to be uploaded to a web server, typically purchased from a hosting provider. This service is known as web hosting.
VPS hosting is a hosting suited for people who have outgrown shared hosting.
Many sites live on a single server with shared hosting. They have no guarantee of resources and might lack resources in case of a website traffic boost. VPS lets fewer users share allocated segments of hard drive space, memory, and processor power to solve such problems.
All users on a VPS server have access to a virtual machine running its own copy of an operating system (OS). That allows customers using VPS hosting to experience similar capabilities and performance to a dedicated server for their sites.
The majority of website owners start their website by launching it on a shared server hosting.
In time, as their site grows and demands more resources and functions, they may need a more robust hosting option. A virtual private server (VPS) is generally considered the stepping stone between shared hosting and a dedicated hosting setup. Your website runs on its server.
So let’s discuss all types of web servers!
If you choose Shared hosting for your website, it’d be like living in an apartment. It’d be budget-friendly and can come furnished with all you need before you move in. The thing is sharing facilities with your neighbors ( I mean sharing resources with the other websites on the shared server). If you throw a party in your apartment (website traffic boost), building management will want to talk to you.
What Is Forex Trading?
In a nutshell, Forex trading is where currencies are traded. Foreign currencies are essential because you can buy goods and services locally and across borders with them. International currencies should be exchanged to lead foreign trade and business.
If you live in the U.S. and want to buy original red wine from France, either you or the company you buy the cheese from has to pay the French for the cheese in Euros (EUR). That means that the U.S. importer should exchange the equal value of U.S. dollars into Euros.
The whole process is the same for tourists and travelers. A German tourist in Egypt can’t pay in Euros to visit the Pyramids. That’s because the Euro is not the accepted currency in Egypt. That’s why the German tourist has to exchange their Euros for the Egyptian pound, at the current exchange rate.
There’s no central marketplace for foreign exchange in the international market, and that’s its unique point among other markets.
Instead of a global center, currency trading is done electronically over-the-counter (OTC). That means that all transactions occur via computer networks between traders worldwide instead of a centralized exchange.
The currency market is open to working 24 hours in five and a half days a week. The currencies are traded all the time in the main financial centers of Frankfurt, London, New York, Tokyo, Zurich, Hong Kong, Singapore, Paris, and Sydney—across almost every time zone.
That means that when the Forex trading day in the U.S. ends, the forex market begins in Seoul and Beijing. As such, the forex market is significantly active all day long, with price quotes changing constantly.
If you get a dedicated server, it’d be like having your own private property. All the resources in that property belong to you exclusively, and neighbors can’t bother you, even if you do throw a massive party in your house (By that, I mean high website traffic).
VPS lies somewhere in the middle. It behaves like a dedicated server but with allocated system resources. Let’s equate VPS to a townhouse bigger than an apartment (shared hosting), but you share the property and certain services. What’s more, throwing a party (having lots of web visitors) is easier.
What Is Latency and How It Impacts Forex Trading
Latency means the delay between triggering a command and the computer’s response time. To you as a Forex trader, latency means the difference between a successful trade and a failed one. The higher the latency, the more money you lose on a Forex trade. If you click on the “buy” or “sell,” the order must instantly register with the trading server.
Even a few seconds delay can lead to a price shift, cumulatively costing thousands of dollars in a year. Forex traders should have reliable, secure, and high-speed platforms to conduct their trade. Fortunately, there are solutions such as Forex VPS that can save your day!
If you think about why latency is such a huge problem in Forex trading, you’d better know that latency isn’t an inconvenience or a technical issue. Instead, it’d cost you so much money. When high latency becomes an issue, the Forex traders must deal with slippage along with re- and off-quotes.
For example, high latency can lead to a price shift after clicking on the “buy” or “sell” buttons. While price shifts can happen in either direction, they tend to go opposite your desired position. A minute slippage of 0.5 pips might seem insignificant, but this can result in a loss of thousands of dollars in a single year. Furthermore, latency strikes again when you must deal with re- and off-quotes.
Re-quote means that the broker must place your order at a price different from what you already expected. Conversely, an off-quote means your broker can’t place the order since the trade may no longer be accepted based on the price requested. Forex traders serious about avoiding these issues must search for a solution to lower latency.
Average Forex traders who work with the MT4 servers from home will have an execution time of 800 ms. As a result, approximately half of every trade made by average traders will lose money because of slippage. On the other hand, high-frequency traders boast a substantially quicker execution time at 5 ms, experiencing little slippage.
How to Reduce Latency with a Forex VPS
While VPS hosting offers Forex traders numerous benefits, VPS’s primary function in Forex trading is to prevent high latency and slippage.
Without a Forex VPS, executed commands may be delayed enough for the pips to slip just a fraction of a few points. That slippage, no matter how small or large might cost the Forex traders an arm and a leg. If coupled with the unpredictability of the Forex trading market, slippage becomes a severe problem that must be addressed.
The critical solution is to prevent latency, ensuring orders are transmitted as soon as they are sent. By investing in VPS for Forex trading, you keep your deals secure and increase the likelihood of achieving the quotes you want.
Where To Find The Best Forex VPS 2021?
Are you just exhausted from losing money for high latency? Are you looking for a fast, secure, and cheap Forex VPS? Routerhosting has got them all in one place!
RouterHosting has proven itself as the best VPS for Forex in the tech arena by gaining the highest amount of customer satisfaction among all.
If you choose our high-speed, robust, and reliable and cheap Forex VPS servers, you’ll just forget about latency and slippage in your trading!
We also promise %99.99 uptime! That means you’ll be available 24/7 and never miss anything in the trading market.
By offering dedicated-level resources to our users, slow execution time would never affect your trading process again.
Working with RouterHosting means being as close as possible to your broker as we have server locations in the main trading centers in the world. That provides the best availability and reliable connection along with the best Forex VPS.
RouterHosting has multiple locations worldwide next to the leading Forex trading centers, including 12 locations in the United States and 1 in Germany, United Kingdom, Singapore, and the Netherlands.
Our data centers have robust hardware and software resources. We offer KVM-based VPS servers supported by top-level 100% SSD storage to guarantee you high-grade performance and fast response times.