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How Does VPS Work in Forex Trading?

May 13, 2010 (Last updated on October 2, 2012)

Forex VPS is a service that helps traders to deploy their expert advisors on a dedicated server that will be running 24/7 without interruptions, independently from the trader’s own computer and without any efforts from the trader’s side. VPS hosting companies usually charge from $10 to $99 per month (depending on the server’s quality and the company’s greed). If you have a working MT4 EA, it’s always better to install it on a VPS, because when an EA is running from your home or office PC there is always a chance for some unforeseeable problems (like internet disconnects, power outages, system errors, etc.)

But how does VPS work in trading? What does VPS serve for? The general scheme of how the VPS is used in trading can be seen below:

General Organization of VPS-Based Forex Trading

All three entities — trader’s PC, VPS with EAs and broker’s MT4 server — are connected to the internet. Trader has still a choice to control the VPS and upload new EAs to it and also to control and monitor its trading account with a Forex broker. Fortunately, none of these actions require a 24/7 uptime from the trader’s PC or connection. EAs installed on VPS are sending orders to the MT4 server 100% autonomously — the actual trading requires a 24/7 uptime and it’s provided by the VPS.

It can be seen clearer by looking at the case when the trader runs an expert advisor on his own PC and thus is required to always maintain a persistent connection to the MT4 server:

Trader Uses EA Without VPS

The difference is seen when the VPS is used to host the expert advisors. Now trader rarely needs a connection to the VPS (only when some adjustments to the EAs should be made), while the VPS remains always connected to MT4 server and is sending trading orders directly to it:

Trader Hosts EAs on VPS, Which is Connected to MT4 Server

I hope that now it will be easier for some traders to understand why it’s recommended to opt for a VPS hosting for their EAs when they can afford it. I’ve used “MT4″ in the text and in the images but, of course, it can be “MT5″ or any other trading platform that supports automated trading using expert advisors (or Forex robots).

Update 2012-10-02: We have prepared a nice infographic explaining the ins and outs of Forex VPS.

If you have any questions or comments regarding the usage of VPS in Forex trading, please, feel free to reply using the form below.

58 Responses to “How Does VPS Work in Forex Trading?”

  1. Robert Belonwu

    Do you allow new traders some kind of demo services no your platform? Secondly does your company accept bank wire transfers as a means of payment?

    Reply

    Andrei Reply:

    What company? I think you’ve asked your question in a very wrong place.

    Reply

  2. Rick

    congratulations on making a simple concept sound very complicated. It’s not surprising that Robert is confused about the product you’re offering.

    Reply

    admin Reply:

    It’s surprising, because I’m not offering any product.

    Reply

  3. kehinde

    Hi,
    Thanks for sharing pls which VPS would you recomend for me, am in Nigeria and my broker is in kuwait, I also have a signal provider i follow in Florida and he uses trade copier

    thnaks

    Reply

    admin Reply:

    I don’t know if it’s possible to follow someone’s signals if you want to trade via MT4 hosted on VPS. Forex VPS is used to host expert advisors… Anyway it’s always better to choose a VPS that’s close to your broker’s location.

    Reply

  4. Ajayi

    Some EA required that PC and EA shoul be switched on with internet connection during trading hour; If i’m using VPS Do i need to swithced my pc on with internet connection before EA will be taking trade? OR the EA will be taking trade for me even if i’m off line through the help of VPS
    Please, send reply to my e-mail address.
    Thanks

    Reply

    admin Reply:

    No, you won’t have to switch your PC on if your EA is hosted on VPS.

    Reply

  5. Darius

    Can I use a VPS from a compnay even if i do not have internet at my house?

    Reply

    admin Reply:

    You’ll need internet connection to buy VPS, to install the needed indicators/EAs and to set them up. After that (if your EAs don’t require constant tuning) you can leave the VPS alone.

    Reply

  6. stuart

    If I don’t want to use a dedicated computer for forex trading only, can I for example run my other programs on my PC such as Outlook etc or use other Internet based programs whilst still having the VPS connection on the same computer?

    Reply

    admin Reply:

    I don’t quite understand what you are asking… You can run not only MetaTrader on VPS and you can run other Internet-using programs on your PC simultaneously with MetaTrader.

    Reply

  7. mark

    do i need the servers ip address when using the vps ?

    Reply

    admin Reply:

    Yes, either IP address or domain name.

    Reply

  8. pk2

    thanks a great deal!
    pls can recommend a vps for alpari nigeria

    Reply

    admin Reply:

    Sorry, I don’t know any VPS providers working in Nigeria.

    Reply

  9. sven

    I am in US but my broker is in Finland, I want an vpS in ansterdam to reduce latency which my ea is sensitive to.

    Reply

    admin Reply:

    HostPlate offers VPS based in Netherlands:
    http://www.earnforex.com/forex-vps-hosting/HostPlate

    Reply

  10. Deedee

    Plese my broker is trading point in limassol cyprus and am in Nigeria. What vps service will you say is best 4 me? Thanks

    Reply

    admin Reply:

    If you own Internet connection is good, then it’s better for you to use some VPS hosting from Europe. Here you will find plenty of them – from Bulgaria, Slovakia, Netherlands, UK, etc.:
    http://www.earnforex.com/forex-vps-hosting/

    Reply

  11. olatunji

    i think i dont need to pay for any vps company, exness vps is good enough for EA i am using forex signal and is working when am offline now i want to use robot but i dont know if that also will work with my broker vps hosting too please reply me

    Reply

    admin Reply:

    If you are going to trade with EXNESS, then, of course, their VPS will be enough, even if you are going to use a robot (expert advisor).

    Reply

    Mike Reply:

    Dangerous advise. Most commercial VPS provisions are poorly secured, if at all and in nearly every case, the VPS vendor HAS access to your entire configuration and data at all times. One needs to be very careful in determining the correct measures to secure a VPS as well as monitor it for access and intrusion. Most of these disciplines are well outside the technical scope for traders to manage and the degree of written commitment with the VPS vendor is absolutely paramount. VPS is NOT a solution, but an additional potential for “unexpected” loss when due diligence does not include these concerns being well maintained. 10 plus years in server development and administration in trading, I can promise you I’ve seen the horror stories with my own eyes.

    Reply

    admin Reply:

    There is a grain of truth in what you say, Mike. The problem is that the home PC of a trader is not any safer than a server of a professional VPS service.

    Reply

  12. Patrick

    Which server’s ip address do i need to provide,and is it just any domain name that i can provide?

    Reply

    admin Reply:

    Provide to whom? That depends on the VPS provider you use.

    Reply

  13. kayode

    pls what are the neccessary prosedure to take if i want to use a VPS and besides i live in nigeria and i want to start using the VPS pls if i have 4 trading account with just one broker can i operate on all the account with different ea in one VPS service

    Reply

    admin Reply:

    You can definitely use VPS to trade on four different accounts with one broker. You will need either MetaTrader Multiterminal or install the same MT4 four times and enter different login details in each one.

    You can start by selecting the VPS service here:
    http://www.earnforex.com/forex-vps-hosting/

    Reply

  14. Aj

    I presently am trading using meta trader on my desktop but my internet service says I am exceeding my data usage for the month . If I use meta trader through VPS will that eliminate or greatly reduce the amount of data usage through my current internet provider?

    Reply

    admin Reply:

    That will depend on how much time will you spend logged in to your VPS and managing your MetaTrader platform there. If you just set it up there and forget, then, of course, your bandwidth with the ISP will decrease greatly.

    Reply

  15. john

    Pls I am a signal provider on zulutrade, tradency, currensee and I am also a PAMM manager, if I install my ea on vps, will it still be able to send trade signals to my followers on zulutrade, tradency, currensee.

    Reply

    admin Reply:

    Yes, that would still work because all those signal services will connect directly to your broker’s trading server, not your PC nor your VPS.

    Reply

  16. San

    Hi, I am still keeping my day job wile trading FX. However, I can’t use EA in my work laptop. In this case having VPS will help me for occasional checking of trade signals log in by iPad?

    Reply

    admin Reply:

    If your iPad can run some kind of remote desktop connection software, then yes, you will be able to do that.

    Reply

  17. Warren Johnston

    Hi there……can I have multipule accounts on a vps server? 5 different accounts with 5 different providers running different EA stratergies?

    Reply

    admin Reply:

    Why not? But the VPS should be powerful enough to handle that. Cheapest package will probably be too laggy for 5 platforms.

    Reply

  18. cheleena

    How to join vps for my forex account

    Reply

    admin Reply:

    Choose a VPS, go to their website and register an account.

    Reply

  19. cheleena

    I’m from sri lanka.so vps supported to me,How i join vps????

    Reply

    admin Reply:

    Yes, it doesn’t matter where you live, though your connection speed depends on that.

    Reply

  20. cheleena

    I don’t know any VPS providers working in sri Lanka.Pls tell me?

    Reply

    admin Reply:

    Why? Any VPS listed here will work with a resident of Sri Lanka: http://www.earnforex.com/forex-vps-hosting/

    Reply

  21. cheleena

    Oh thanks a lot admin for ur valuable information

    Reply

  22. emma

    ps can i still manage my Ea on vps,and choose when and when it should trade or not. As in close my trade,stop the Ea from trading anytime i want if it is running on `VPS.
    Thanks

    Reply

    admin Reply:

    Yes, Emma, you surely can do that. You may login to your VPS anytime and control your EA they you want.

    Reply

  23. Cam Forex

    I recently wrote a post providing detailed instructions on how to setup a VPS through Amazon Web Services.

    What’s more you can use it for the first 12 months for free and the ongoing costs (if you choose to keep it) are much lower than your standard VPS supplier (depending on how hard you make it work).

    Either way it’s a great place for newbies to start if the cost of a VPS puts them off initially.

    I’ll leave the link to the blog post below (not sure if you have a no link policy) but it’s one of those great finds that I want to share with as many traders as possible.

    http://www.camforex.com/how-to-setup-a-free-forex-vps/

    Enjoy!

    Reply

    admin Reply:

    Thanks for sharing! How does VPS via Amazon AWS compares to yours from SWVPS? Is there any difference between connection speed (terminal-broker, RDC-VPS)? Any difference in VPS performance?

    Reply

  24. Cam Forex

    Well the free one via AWS is obviously of their lowest spec, so you wouldn’t want to run more than 3 terminals trading 2 charts max on it before it started to creak.

    My SWVPS servers are all running several terminals and well specked, so it’s hard to gauge unless I ran a specific test.

    The beauty of AWS is that you can choose from a handful of Data Centers across the globe, so if they are handy to your broker you should get decent latency.

    BTW, not sure if you’re Notify feature is working as I didn’t get an email to say you had placed a follow-up comment.

    Reply

    admin Reply:

    I would also think that AWS customer support on that free plan is nearly absent.

    Reply

  25. Daniel

    What is the difference between a Forex VPS provider (eg : UnltraHosting) and a Cloud VPS provider like Interserver? Can I use Interserver VPS for my Forex Robot autotrading or I shlould go for VPS specifically for MT4? Thx

    Reply

    admin Reply:

    Not a big difference if their VPS can run MetaTrader. Specialized service will probably have better support related to trading software, but that is it.

    Reply

  26. MAX

    Thanks for your detailed explanation. I just want to know if an EA or indicator that alerts you by email on mt4 can still send you emails when set-up on a VPS.
    Thanks.

    Reply

    admin Reply:

    Yes, it can if you configure email settings properly in your MT4.

    Reply

  27. andrew ramcharitar

    I would like to know,when i close my vps system and it says the connection will be on although i closed it,if i have to leave my internet connection on in order that the trades may connect to my mt4 platform(i have a trade copier ea trading for me).
    Can you give me a little more information when i log off on my computer how this works and if i have to leave my internet connection on when i log off from my computer.
    Thanking you
    Andrew Ramcharitar

    Reply

    admin Reply:

    You do not need to leave your home internet connection on, if you have everything set up on your VPS.

    Reply

  28. doji

    @Cam Forex or anyone else informed, I’m trying to setup a new account at Amazon AWS, but they ask for your credit card. Hw to ha it free for 12 months? thanks

    Reply

  29. jahid

    hello,

    I see that most of the vps providers are not free. do you suggest any free and good vps provider which can do the best work with instaforex?

    Reply

    Andriy Moraru Reply:

    Sorry, but I don’t think there are any free VPS. Why would someone offer it for free? On the other hand, as far as I know, InstaForex offers its own VPS to traders who deposit at least $5,000 in their live account.

    Reply

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