Advantages of using Exness free VPS Hosting for trading

VPS hosting for trading operations offers many advantages for all levels of traders and Exness is offering it for free to qualified customers.

A VPS host allows you to run your trading platform remotely, which is usually as close to your broker’s or stock/commodity exchange servers as possible.

The advantages of using a VPS for Forex and general trading are many. So, this post focuses on what the Exness VPS offers and what it can mean for your trading business.

How VPS Technology Works

VPS stands for Virtual Private Server and is used to host a remote computing environment. The technology uses a Hypervisor to divide a physical server into multiple virtual servers that can be run independently of each other.

The hypervisor allows an easy allocation of resources to each virtual server, so the administrator can increase CPU cores, RAM, and hard disk storage space at will. Each virtual server is also serviced with a networking environment to allow internet access.

Any type of operating system can be installed on the VPS – including pure servers without a graphical user interface and those with. In the case of non-GUI servers, the standard method of accessing such a VPS is with the secure shell (SSH) protocol, while GUI-based VPS systems can be accessed with RDP (Remote Desktop Protocol) applications.

Since modern trading software involves charts, a trading VPS should come with a graphical user interface, otherwise, it would not be possible to install trading software like Metatrader on the server.

Who Needs A VPS For Trading?

There are two groups of traders that can benefit from using VPS hosting to trade the markets. The first type is the standard algorithmic trader, while the second type is the HFT type. Here is a closer look at both types.

• Algorithmic Trader: Algorithmic trading refers to all automated trading systems that reach market entry and exit decisions on their own, either with partial or no help from a human. Algorithmic trading software are often called robots or expert advisors, and majorly feature an algorithm that helps them to analyze and make sense of the financial markets. These are often technical indicators such as the moving average, trend lines, channels, and exotic or proprietary systems. Algorithmic trading can focus on short-term market moves or the medium or long-term. Most retail traders using a VPS are in this group.
  
• HFT Trader: The HFT or high-frequency trader is an algorithmic trader that is focused more on making numerous very short-term trades. So, while the average trading robot might run with an average trade duration of 3 hours or 2 days, HFT is about minutes, seconds, or even shorter. An average trader might expect to make $100 from a 100-pip move, but the high-frequency trader might expect to make the same $100 from a 10-pip move by loading more lots and using a very tight stop loss. Hence, networking speed and proximity of the VPS to a broker or exchange are of utmost importance in high-frequency trading.

Advantages of VPS Trading

There are many advantages of using a VPS hosting service such as is provided by Exness to trade the markets. Here are the top ones.

• 24/7 Operation: Once started, a VPS will run continuously until shut down. This is unlike the normal computer usage of laptops and even desktop systems. If you want your trading robot to constantly monitor the markets and trade for you, then a VPS is often the best idea. Of course, you could also set up a robot at home, but can you guarantee that your spouse, sibling, or friend will not mistakenly switch off the system? What if there is a power failure, do you have backup power to guarantee that your robot remains in operation?
  
• Minimal Latency: A VPS host that is located close to a broker or exchange reduces latency between the robot and the market. Latency is the time it takes for a signal to travel from one system to another. This includes the time it takes for market quotes to travel from your broker to your trading system, as well as the time it will take for your market order to travel back to the broker before it gets executed. If the signal takes too long, then significant slippage can occur.
  
• Reduced Slippage: You always want to trade with as little slippage as possible. Slippage is a change in quotes that don’t favor you during market entry. For instance, you are watching the EUR/USD pair and prices hit 1.02001 and you are looking to go long. If your broker fills all your orders at 1.02001, then you have zero slippage. However, if you were buying 10 lots and the broker fills only 5 lots at 1.02001, then another 3 lots at 1.02002, and the remaining 2 lots at 1.02003, you’ve had some slippage, though minimal. You should note that slippage only becomes a major issue when you are trading big lots, else, it doesn’t matter.
  
• Trading From Anywhere: Having your trading system run on a VPS gives you the freedom to manage your trading business from any part of the world without worries. You don’t need to move around with a top-tier machine with a fast internet connection. All you need is to log into your VPS from any device from time to time to check how things are going.
  
• Secure & Reliable: Unlike most personal computers that can easily get infected with malware or break down because of some updates or other issues, VPS servers are professionally managed, secured, and kept up to date. This gives your robots the best opportunity to run on a reliable system that ensures minimal disruption.
  
• Scalability: VPS systems are easy to scale, all you usually need is to log into your admin console and increase CPU or RAM. The need to scale can arise when you have multiple robots trading various markets at the same time and your VPS needs enough computing resources to handle the load.
  

The Exness VPS Offer

Exness offers a unique VPS hosting platform that stands out from the rest by featuring a robust configuration that can serve the vast majority of trading systems and their resource needs. To use free VPS, you must create and start an account. Here are the features of Exness VPS.

• It is Free: First and foremost, this service is free for all qualifying Exness customers. All you need is to have the minimum required balance in your account or trade a minimum volume of transactions each month. A good VPS service with robust features like the Exness service can cost a few hundred dollars each month.
  
• Close-By: Proximity is another advantage of the Exness Free VPS service. Unlike other hosting providers where you need to carefully select a data center that is closest to your broker or exchange, Exness already provides the service from the most appropriate location.
  
• 2-core CPU: Although they do not specify the exact specs of the virtual machine’s included CPU, being a 2-core means a lot. First, it means the system will be more stable in withstanding peak performance periods. Secondly, if you run Metatrader 5, then it can make proper use of the dual-core architecture for better execution.
  
• 2 GB RAM: Metatrader isn’t memory-hungry unless you are running a crazy robot with a huge dataset. So, the VPS with its 2 gigabytes of RAM is okay for most trading applications. RAM is the server’s internal memory where applications are loaded for execution, in addition to the base operating system.
  
• 50 GB Disk Space: Exness includes 50 GB of storage space with each VPS, so you have enough space to save as much chart data and logs as you want.
  
• Windows Server 2019 64-bit: Each Exness-free VPS machine also comes with a 64-bit Windows Server operating system ready to go. All you need to do is set up your RDP client and log into the server to install and run your trading software.
  

How To Qualify For Exness Free VPS

You should note that this Exness Free VPS service is only available for select customers based on their account balance or trading volume. Furthermore, the minimum requirements seem to vary from region to region, so Exness advises that you log into your user account on their website or through the Exness app, then click on Settings and on Virtual Private Server to see if you qualify or the requirements for you to qualify. For new users, First create an account, then become active, you can then have access to the free VPS.

Connecting to Your VPS

Connecting to your Exness VPS to set up your trading environment is easy. First, you will need to log into your Exness personal area from a browser or the Exness app. Then navigate to Settings → Virtual Private Server. Make sure the VPS is showing Online, then copy its address, login, and password.

Now, depending on the operating system that you are running, you will have to use one RDP client software or the other to connect to your new server. On Windows, you can type Remote Desktop Connection in the start menu, then enter your connection details. On a Mac, you can download the Microsoft Remote Desktop app, and on Linux, you can either download and use Gnome Connections or Remmina.

Frequently Asked Questions

The following are some of the most frequently asked questions regarding VPS hosting for trading and Exness.

Q: Does VPS trading work for Metatrader 4 and 5?

A: Yes, all VPS hosts that run Windows 64-bit operating systems can run the MetaTrader 4 and 5 platforms remotely for you.

Q: Can I use VPS trading on Linux?

A: Sure, you can connect to your VPS server from any computing device, including Linux, macOS, and even Android devices. All you need is a remote desktop client on or system or any other app that supports RDP (Remote Desktop Protocol).

Q: Does VPS hosting work for manual trading?

A: Yes, it works. But does it make sense? No, because you will always get faster order execution as a manual trader if you connect your trading software directly from your computer to your broker’s servers. VPS hosting will only save you precious time if you are doing full or partial algorithmic trading.

Q: Is the Exness free VPS truly free?

A: Yes, it is free for Exness customers with specified minimum account balances or higher. You will need to check your Exness personal area to see the minimum requirement for your account to get their free VPS hosting.

Q: Do professionals use VPS for trading?

A: Yes, lots of professional traders and trading companies use VPS hosting to house the proprietary trading algorithms that make money for them.

Conclusion

We have reached the end of this guide on the advantages of using Exness VPS hosting for your trading activities. You have seen how the better security, stability, and scalability of a VPS can help boost your algorithmic trading profits. You have also seen the Exness VPS system specs and how to access it once you are approved. The rest is up to you.
You can check out the free Exness VPS hosting offer for more details here.