Algorithmic trading requires traders to remain connected to their trading platforms.
While traders can run their computers 24/7, a more efficient method is VPS hosting. What is VPS, how much does it cost, and how do you get it? Learn about VPS hosting and why you should consider it by reading my in-depth review of VPS hosting brokers, which includes the pros and cons of VPS hosting and how to get it for free.
- FXTM, Best all-around broker with high floating leverage and fast execution.
- AvaTrade, Highly regulated, choice of fixed or floating spreads.
- FP Markets, ECN trading with leverage up to 1:500.
Top VPS Hosting Forex Brokers
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Regulators | CMA, FCA, FSC Mauritius, FSCA | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | ASIC, CMA, CySEC, FSCA |
Year Established | 2011 | 2006 | 2005 |
Execution Type(s) | ECN/STP, Market Maker | Market Maker | ECN/STP |
Minimum Deposit | |||
Average Trading Cost EUR/USD | 0.1 pips | 0.9 pips | 1.2 pips |
Average Trading Cost GBP/USD | 0.2 pips | 1.5 pips | 1.4 pips |
Average Trading Cost Gold | $0.18 | $0.29 | $0.16 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, Proprietary platform | Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based+ | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based |
Islamic Account | |||
Negative Balance Protection | N/A | ||
| Visit Website | Visit Website | Visit Website |
FXTM
In Summary Best all-around broker with high floating leverage and fast executionFXTM ranks among the best VPS hosting Forex brokers as it offers cutting-edge price improvement technology, lowering fees by an average of $3.00 per lot, applicable on 97.18% of all trades. Traders get raw spread trading from 0.0 pips for a commission of $7.00 per 1.0 round lot. Equity CFD traders pay a commission of $0.02 per share per side with a $0.01 minimum commission. Deep liquidity pools provide an average execution time of 0.071 seconds.
FXTM upgrades MT4/MT5 with Trading Central, the FX Blue upgrade package, and its in-house Pivot Point Strategy plugin, ensuring traders have an edge.
Pros & Cons
- Excellent commission-based Forex pricing environment and transparency
- Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
- Quality market research and educational content for beginner traders
- A highly regulated broker with a tier-1 license
- Limited choice of commodities
AvaTrade
In Summary Highly regulated, choice of fixed or floating spreadsI rank AvaTrade among the best VPS hosting Forex brokers as it provides excellent education, including video tutorials on installing a VPS. Beginners also benefit from the MT4 Guardian Angel plugin and the fee-based Ava Protect insurance policy, protecting against trading losses. The reasonably priced commission-free Forex trading fees start from 0.9 pips or $9.00 per 1.0 round lot, while equity traders get fixed spreads between 0.13% and 0.19%.
The well-balanced asset selection includes options, futures, ETFs, and cryptocurrencies. The high-paying partnership program features 70,000+ partners from 150+ countries and $250M+ in paid-out commissions, catering to passive income seekers.
Pros & Cons
- High quality educational offering via AvaAcademy
- Excellent choice of trading platforms catering to various trading needs
- Broad asset selection and cross-asset diversification opportunities
- Well-regulated and trusted broker with oversight from a central bank
- Trading costs competitive but nothing special
FP Markets
In Summary ECN trading with leverage up to 1:500FP Markets offers traders competitive commission-based Forex fees featuring raw spreads from 0.0 pips for a $6.00 commission per 1.0 standard round lot. Equity commissions are between 0.05% and 0.20% or $0.02 per share per side. The well-balanced asset selection includes ETFs and cryptocurrencies. FP Markets upgrades MT4/MT5 with 12 plugins, plus services by Trading Central and Autochartist. It places FP Markets highly on my best VPS hosting Forex brokers listing.
Beginners receive quality education, research, and daily market reports via the FP Markets newsletter, while multi-lingual customer support is available 24/7. A multi-tier partnership program also exists.
Pros & Cons
- Choice of trading platforms and auxiliary trading tools
- Very competitive cost structure and excellent asset selection
- Low minimum deposit requirement and leverage of up to 1:500
- Well-regulated and trustworthy
- Availability of Iress geographically restricted
What Is a VPS?
A virtual private server, or VPS is a virtual machine that provides server resources hosted on a physical server and shared with others. A VPS runs an operating system similar to a computer, and traders can install their trading platform, including algorithmic trading software. It is almost equivalent to a dedicated physical server but is easier to configure and use as it is software-based.
What Is VPS Hosting in Forex Trading?
A VPS allows algorithmic traders to execute their algorithmic trading 24/7 without running their computers day and night. The best VPS hosting brokers offer their hosting service free for qualifying traders. This shields traders from internet interruptions, power failures, and geographical or personal limitations.
VPS servers with collocation to trading servers ensure low-latency trading necessary for scalping and high-frequency trading. Traders using VPS hosting also benefit from enhanced stability and security, including robust firewalls to protect against cyber threats and 24/7 monitoring, while various plans scale to match evolving trading algorithms and resource needs of traders. Therefore, traders benefit from more trading opportunities and increase their profit potential.
How to Choose the Most Suitable VPS Hosting Forex Broker
Traders have a growing choice of VPS hosting brokers, but they should check the VPS hosting offer to ensure it matches their requirements.
Here is my list of core components of a competitive VPS hosting broker:
- Reliability and Uptime - I would avoid VPS hosting with uptime of less than 99.99%. Reliability is essential to prevent any disruptions in trading activities due to server failures.
- Costs and Pricing - The best VPS hosting brokers offer free hosting to qualifying traders. I recommend traders who do not meet the requirement for free hosting reconsider until they can meet them, as it would make VPS hosting a non-economical choice and lower trading income.
- Latency and Connection Speed - Traders should only use VPS hosting with collocation to core Forex data centers or servers their Forex brokers use to ensure low-latency order execution.
- Trading Platform Compatibility - The VPS hosting server should run a Windows operating system and allow the installation of MT4 or MT5 to ensure a smooth integration of the trading environment.
- Customer Support and Technical Assistance - Technical support with 24/7 availability from the VPS host is paramount to address potential issues that can negatively impact trading activities.
VPS Hosting in Forex Trading – Pros and Cons
Traders should consider the pros and cons of VPS hosting in Forex trading before moving their operations to a VPS host.
The Pros of VPS Hosting in Forex
- 24/7 low-latency trading
- The best VPS hosting brokers offer free VPS hosting for qualifying traders
- Allows trading without internet interruptions, power failures, and geographical and personal limitations
- Compatible with MT4/MT5 for non-stop algorithmic trading and seamless integration
- Enhanced stability and security, including robust firewalls to protect against cyber threats and 24/7 monitoring
- Ability to benefit from more trading opportunities
- Scalable plans to match evolving trading algorithms and resource needs of traders
The Cons of VPS Hosting in Forex
- Expensive monthly fees if traders do not qualify for free VPS hosting from their brokers
- Virtual servers share the underlying physical hardware with other users
- Performance may decrease depending on the workload of other VPS users
Bottom Line
The best VPS hosting brokers offer the hosting service for free qualifying traders, and traders who do not meet the criteria should wait until they meet the minimum requirements. Traders with portfolios below $5,000 should also wait to increase their balance. VPS hosting ensures 24/7 low-latency trading without internet interruptions, power failures, and geographical and personal limitations. It is a necessity for effective algorithmic trading.
