Why You Should Host Your EAs with VPS Provided by Your Broker Only

VPS Hosting is the preferred method of hosting EAs so that these Expert Advisors can trade the market 24 Hours continuously. Because Traders cannot keep their Personal Computers on 24 – 7 because the computer will overheat, the best option is to use the Virtual Private Server.

How are EAs Hosted on Virtual Private Servers

Traditionally, when the VPS hosting service was just starting and Forex brokers had not yet started to provide this as service (now every serious broker provides this service internally because of security), before we explain why as a trader you should only use your broker's Virtual Private Server, lets explain the traditional way of VPS Hosting; the service worked like this:

The Virtual Private Server is a Specialized Computer Placed in an Air Conditioned Room that keeps temperatures very low to facilitate cooling of this computer. The Processing Speed of these computer being way faster than any personal computer and the cost of owning one being way out of reach of most, therefore the only available option is to lease space on a Virtual Private Server, from a Hosting Firm for a fee of about $30.

Therefore, once a trader paid this fee a trader was provided with an access password and login to their own Virtual Private Server space. The Trader would then download the trading platform – MetaTrader 4 from their Forex broker's website, then upload and install this platform to the Virtual Private Server. After installing the platform on the VPS the trader could now log to the Virtual Private Server, then start their platform and place trades similar to the way a trader trades on their computer, the only difference now being you're trading from a Virtual Private Server not your computer.

The trader would then install their EAs on the MetaTrader platform that is installed on the VPS, the trader would then enable EA Automated Trade Execution and then leave the platform to run 24 – 7 to run on Auto Trade. This is what is Known as VPS Hosting.

To monitor the EA, the trader will just login to the Virtual Private Server, and open the MetaTrader 4 Platform and monitor trades from the MetaTrader 4 Terminal Window.

There is no technicality in trading with a Virtual Private Server, if you can install a platform on your computer, installing the same and trading with it on the Virtual Private Server is just as easy.

Why Brokers Now Provide Virtual Private Server Hosting Services

With Expert Advisors Automated Trading becoming more and more popular, most Forex brokers now provide VPS Hosting Services because of the following reasons:

1. Security

A broker will provide the VPS hosting solution, one because of security, this way a trader does not have to login their account details: password and account login on an external computer hosted by some anonymous person. With this solution your account details will remain secure.

With your broker you can be sure they will use https (hypertext transfer protocol Secure ), which means secure encrypted connection between the Virtual Private Server and their Trading Servers, this ensures your account details are not intercepted over the internet.

2. Speed of Execution and Location

Brokers will keep their VPS Server in the same location as their trading servers, therefore the speed of speed of connection between the two is optimum, at the same time no time will there be no connection between the two because the two are in the same location and these two are not relying on an external internet connections but are in the same location.

This would be different from a situation where as a trader you EA is hosted in a VPS Server in New York and your Broker's Trading Server is in London. Your VPS Service Provider may not guarantee a full time connection between their VPS and your broker servers in London.

Because of Location, Traders should choose the the hosting solution provided by their broker's because these will be the located closest to their trading server ensuring optimum speed and proximity of location between the two .

3. Cost

Forex brokers will only charge a standard fee for hosting EAs on their Virtual Private Servers and will provide all traders with the same optimum VPS package, for high volume traders, these VPS Hosting services are provided for free. Compare these to other Virtual Private Server hosting services provided by business men who are out to make the maximum profit from hosting your EAs. These business men will charge starting from $30 for the least optimum VPS service, up selling you to buy the most optimum Virtual Private Server at a premium price of $100 dollars, which is too expensive when you can get the same from your broker at a lower price of $30 or Free if you are a high volume trader.

Example VPS Hosting Service From a Directly Within The Forex Account

From the Account Below, the VPS service is provided and as a trader service this Virtual Private Server Hosting Option can be activated any time directly from the trader's account.

Virtual Private Server Hosting Service Provided Within trading Account

4. Ease of Operation and No Installation Required

With a broker's provided VPS Hosting Service the Trading Platform and all other settings will be pre-installed to simplify this service for the trader, therefore the trader will just login and trade without having to setup anything that is technical in nature.