Foreign exchange or “Forex” as it has become known, can be defined as a network of buyers and sellers, who transfer international currency between each other at an agreed price. The general people, companies and central banks convert one currency into another in this manner. You have probably travelled abroad at some stage, and, chances are you have also made a forex transaction as well, but probably for practical purposes. This is a large purpose of Foreign exchange, however the vast majority of currency conversion is undertaken to earn a profit. Much of the Forex trading today is moving in the direction of becoming computerized and technological.
Why use VPS for Forex trading?
A virtual private server is a special type of server which is housed on the same computer as several other virtual private servers—this is why they are termed “virtual.” Although they’re all located on one machine, they can operate independently of each other. You’re guaranteed a certain amount of space, RAM, and transfer allowance per month. Your VPS has its own dedicated power supply and offers flexibility, stability, and convenience. In very short, VPS is a cloud-based desktop PC.
- What are the advantages of trading forex using a VPS?
- You can trade anywhere. As for those with a desktop PC and not a laptop, work can sometimes be limited to the location your computer is housed (your house/office). There are alternatives, but maybe you don’t feel like purchasing a mobile device or a laptop, or maybe your broker doesn’t support mobile trading. Perhaps you just don’t like the interface. In that case, you can connect to your platform from anywhere as long as you have a network connection where you can log onto your VPS to trade, even a hotel or internet café.
- Strong security. VPS systems offered by the best companies also come with the best security. Managed VPS servers are checked regularly to make sure that they are functioning, and most companies guarantee 99.9% uptime. You also generally receive antivirus and other tools to ensure your system is safe from vulnerabilities.
- Trade during of power outage. If you rely on automation for your trading, you can continue to trade even if your power goes out. If your automated system performs well even without you monitoring it, you can let it continue making money for you even if you can’t get online.
- Trade in sleep! Since you’re not confined to your desk and you can trade anywhere, and since your system can execute trades even if your computer is off, you can feel more comfortable trading even while you’re asleep.
- Reduced slippage and faster trade execution. This is one way in which a VPS server can benefit you even if you place all your entries manually and don’t use automated trading. A VPS can execute your trades more quickly than your computer because it is much faster transmitting the orders. The result is that you experience less of a delay and less slippage. As we all know, slippage costs money, sometimes a lot of it, so this is a great way to reduce your losses and unpredictability.
Also, by using a VPS in the same location as your broker, you’re able to open and close trades much faster than would otherwise be possible.
However note that the only time a VPS is useful is when you are relying on software to trade, or manage your trades on your behalf. Before going ahead with your Virtual Private Server, make sure you select one in a location that’s is closest to your broker.
- What is MetaTrader?
Metatrader is a kind of software that connects to the different trading platforms and allows to trade in them through a computer or smart phone. Basically, Metatrader is the link between the two. This software is mostly used by Forex traders who have an opportunity to choose the broker with which they wish to trade, as long as it is compatible with the Forex platform. In this way, and in case it is not compatible, Metatrader acts as a bridge that will allow you to trade with the broker of your choice within the same platform.
With that info in mind, it is time to find out how to load Metatrader 4 on your VPS.
Step 1) After signup and ordering of a forex VPS you will get an e-mail from vpsforextrader.com Support Team with an IP address, username and password to connect to.
Step 2) Open the remote desktop connection program in windows. You can usually find it in your Start Menu under Accessories. It should look something like this:
Step 3) Enter your IP for you VPS and your username, then it will prompt you for your password when you press connect.
Step 4) you should now be connected to your VPS and a fresh empty windows desktop should appear. All that’s left now is to download Metatrader 4 platform installer from your broker. So browse to your brokers website, and find the download link.
Step 5) once you have Metatrader 4 installed, you will want to get your expert advisor(s) on to the VPS. The easiest way I find to do this is using the local resources tab on the Remote Desktop Connection like so.
Click the options arrow like shown below…
Now click on the local resources tab and you will see this below…
- Then click the more button show above under local devices and resources and you should get this…
Checkmark the drives you want to share with your VPS and click OK. Now you’re done and can transfer files between your desktop and your forex VPS.
Step 6) Install the expert advisor into your Metatrader 4 experts folder and then start the MT4 terminal.
Step 7) Attach the EA to the appropriate charts, and you’re done!
- If you want your MT4 terminal(s) to auto run whenever the VPS gets restarted, then just create a shortcut in the following directory. C:\Documents and Settings\Administrator\Start Menu\Programs\Startup
- If you want to install multiple MT4 instances e.g. from “KLMNOP US demo”, then just change the install directory to something like C:\Program Files\Metatrader 4 KLMNOP US 2\