MT4 on VPS – key takeaways
Virtual Private Server VPS is highly useful for algorithmic traders. Trading using robots requires reliable internet and electricity. What's more, VPS accounts are physically safer and active 24/7. In addition, traders do not have to maintain the hardware. On the downside, service is usually not free. The main advantage is that VPS gives people a faster connection. This means that the trades you open are placed with the broker a bit faster. This helps with taking advantage of price changes in the market more efficiently and sometimes leads to better payouts.
Installing MT4 on VPS is very easy and does not require too much effort. But, it may still be a bit confusing as to why people would spend time installing it.
FAQ on MT4 and VPS
What is MT4 VPS?
VPS is an abbreviation and stands for Virtual Private Server. The server adds security in trading using MT4. VPS helps Expert Advisors by providing fast and reliable internet, electricity. In addition, VPS accounts are active all the time, which is crucial for algorithmic trading. MT4 traders are increasingly using VPS services for these very reasons.
Why is VPS faster than regular connection?
The reason MT4 VPS is so popular with traders is the fast connection. In order to explain it, let us try to bring an actual example.
Imagine that you are trading from Bangkok, but the broker is located in Dubai. When you make a trade, that information needs to travel all the way from your server in Bangkok, to the broker’s server in Dubai. Although that may take less than 1 second, it still takes time. A person trading from Dubai would have his orders processed much faster than you.
A VPS is basically like buying space very near to the broker’s server, and trading as if you were actually there. Your trades are received by the broker’s server much faster, which means you get a better “connection”.
Who uses VPS when trading?
Not every trader needs FX MT4 VPS when trading, especially if they go for long trades which they close after a couple of hours or days.
The traders that usually use an MT4 VPS server are scalpers, high frequency traders and algorithmic traders. Speed for these traders is highly important. For algorithmic traders, the ability to remain active 24/7 is also very attractive. Algorithms are computer programs that trade on our behalf. For these robots or algorithms to perform, they require internet connection and fast internet. VPS services enable running Expert Advisors for automated trading 24/7.
Do I have to pay for VPS?
Yes. A Virtual Private Server is not free, whether you get it from your broker or the actual server “owner”.
The prices on VPS can be very different, but often, you can expect between $3 and $20 per month, depending on the speed, size, and various other technical details.
When it comes to MT4 VPS, it is even harder to determine which one to go for because every trader has a different strategy or a way of placing trades. The good news is that you can customize your VPS very easily.
Can I use other trading software on VPS?
Yes. An MT4 virtual server is pretty much a separate desktop, it is a virtual computer that you own. You can download, install, and run everything that you would do on your actual computer. So the pieces of software like cTrader, MT5, and all the others can easily be used with VPS as well, it is not exclusive for MT4 only.
How do I select a VPS?
Selecting a VPS server MT4 is usually very dependent on your own preferences. It will mostly require you to calculate how much power you need depending on how much you are going to use it. If you’re going to use it just for trading, then RAM, Hard disk, and CPU are not really an issue.
There’s also the question of location. If you are doing VPS trading, it is typically recommended by scalpers to get one as close to the broker’s server as possible. So if you are from Bangkok and the server is in Dubai, you would get a VPS in Dubai.
Another factor is customer support. There could be some questions or problems you may have with your MetaTrader VPS that you do not understand. Good and fast customer support could be a deciding factor in your trading success, so it is considered to be a good idea to pay close attention to it.
When it comes to the price of your MT4 VPS, most traders try to compare the price offered by the broker to the price offered by an independent company. Usually, there is a small difference, but nothing too serious.
How to install VPS on MT4?
There are only three things that are required to install MT4 on VPS, and it’s quite simple. You will require an internet connection, a remote desktop connection and a VPS address and password from your broker or service provider.
How to set up VPS for forex?
Setting up a VPS account will not take long. The first thing that needs to be done is to get a VPS service. Typically, having a Virtual Private Server is not free. Traders can use various service providers. When choosing a VPS account, traders can choose between various operating systems. Once traders purchase the VPS service, they can log in and install the forex trading platform on their server. Keep in mind that there are various pros and cons of having a VPS, On the upside, VPS accounts are active 24/7, traders do not have maintenance fees and enjoy fast internet connection. On the downside, there are service fees and some VPS services are limited in terms of capacity.