✔️ Information reviewed and updated in April 2024 by Pedro Martínez González
What are VPS and how does a trader use them?
If you have ever read that brokers offer you a free VPS if you invest a certain amount of money, or simply lists of brokers with VPS, or with good VPS, and you do not know what a VPS is, you are in the right place.
A VPS is a virtual private server, and is called VPS by its name in English (Virtual Private Server). Usually one hears VPS when it comes to web hosting, but this is not the case.
A virtual private server can be of use to a trader, depending on the method of trading, and whether or not the trader trusts automated services. More than anything, it is best for traders who use expert advisors.
A VPS is a special type of server that is hosted on the same computer as other VPS, which is why the term virtual is used. Although multiple servers are on the same computer, they can operate independently. Explained in another way, let's imagine we have a computer with 64 GB of RAM. Using virtualization technology, we can divide this computer into 8 "sub-units", each with 8 GB of RAM, each with a different installation of windows, linux (or whatever operating system we want). It is possible to establish interfaces with each of these “sub-units” even though they are completely separate systems. A user could reboot, or even his "sub-unit" could break, still, it would not affect other users.
So the question now is, what would you use a VPS for to trade / trade? Here we give you some reasons why you might want to start operating with VPS instead of doing it directly with your computer.
This private server will work at all hours, every day, without interruptions, even when the computer of the trader fails, this server works independently. This way you would not have more problems such as your internet working very slowly, or not working, problems with electricity and problems with your computer in general.
For example, let's say you are operating, if your computer stops working for some reason, you can access your VPN from another computer without downtime, without data loss, and without having to configure everything again.
Another reason, if your internet connection goes bad, and it fails for some reason, the VPS is still connected to your broker.
One more reason, if you are a trader with more than one account, and you execute operations from several places.
In short, traders use VPS mostly to allow automated operations from expert advisors, a VPS allows them to execute non-stop operations 24 hours a day, 7 days a week. Anyway, if you are a trader who uses expert advisors, and you want them to run constantly without interruptions, then VPN hosting is a good option.
Good information, appreciated.
All the best