07 Jul How to choose the best Forex Hosting Service
Lots of people are going into the forex trading business. And why not? This business is booming. It’s almost like passive income. As long as they have good trades, they will earn non-stop.
The great thing about forex trading now is the option of automating everything. This means the trader wouldn’t need to always check the latest trades. With MT4 and MT5, traders can do online trading. The thing is that a computer can only emulate so much.
This is where traders look for options through hosting sites. They could choose from three types of hosting sites. Shared hosting is one, another is VPS, and the biggest of them all, dedicated servers. All these services cost money at different prices. This article will discuss the different types of hosting services. It would help people decide on what to use.
Types of hosting sites
Shared hosting is the cheapest of the three types. Here, the trader would have to share a single server provided by the host. They have limited resources and options in a shared server. One can only use the software that the host provided. This means that if the trader needs specific software, they couldn’t use it here.
Security is also an issue with shared servers. If one user’s account gets compromised, other users are in danger as well. Since they couldn’t install any software, they couldn’t place any security programs. Traders would also need to cope with latency as well. A heavy-user of the server can cause latency in a trader’s program
Power failures and Internet connections are issues as well. The connection of the trader to the Internet must be continuous. Slow Internet will cause slippage and it could cause a lot of good deals to slip away. The same result will happen with power failures.
With its price, no one can complain about the service that they provide. If the trader is dead serious in earning money through forex trading, they need other options. That is using another type of hosting service.
Virtual Private Server (VPS)
That option is Virtual Private Servers or VPS. It costs a little more than shared hosting but the benefits are magnificent. It is still a server but a big one. It has data centers situated near brokers. One would see their headquarters either in London or New York.
These two locations are the main hub for brokers and forex trading. Since automation is the name of the game, VPS trumps shared hosting because of its abilities. This big server works like a huge storage facility. Each user has a “partition” of the server. They own this server and can do anything with it.
This means they can install whatever program they need. This is a big plus with regard to security and usability. Traders can also run several MT4 or MT5 instances at the same time. They owe it to the large storage space that their partition has. It also has dedicated support that operates round-the-clock. So if ever an issue arises, traders can always rely on their help.
Another great thing about VPS is that it operates 24/7. No shutdowns whatsoever. Maintenance on the servers happens while it’s running. There will be no interruption of the service. Traders enjoy the continuous operation of their instances which would mean more profits.
Most VPS providers connect to a reliable power grid to ensure continuous service. They understand that every moment counts for traders. They couldn’t allow a single moment of service breakdown.
The same can is true with their Internet connection. VPS providers connect to very high speeds to ensure an uninterrupted connection. They connect to speeds of more than 1 GBPS. With a connection speed like that, traders wouldn’t need to worry about latency or slippage.
A stable internet connection is crucial in an online forex trading business. Deals happen by the second so any latency issue may cause the trader to lose a great trade.
All in all, a VPS is the best choice for new and veteran forex traders alike. This is why starter traders should skip shared hosting and go straight for VPS. The thing is that it still couldn’t compete with dedicated servers though.
This is because one has total freedom when using dedicated servers. VPS also has this kind of freedom but it still has limits. After all, users still share the same server; albeit in partitions. A dedicated server doesn’t have that limitation.
As the name suggests, a single user has full control of a single dedicated server. They can do anything with it like installing programs and security. Traders have the whole server to themselves. They don’t have to share it with anyone else. It also has 24/7 support so why do people tend to use VPS than dedicated servers?
The answer is the price. With all its benefits, dedicated servers have the highest price of the three types. So if the trader could do what they want on a VPS, they choose it instead of dedicated servers.
All these hosting types have their advantages and disadvantages. It all boils down to the trader on what to choose based on their needs.