How does Forex VPS Hosting Work?

For those new to virtualized hosting paradigm, the technical concept of a forex VPS can be difficult to understand at first glance. In this article we aim to help explain exactly what’s going on “behind the scenes.”

The premise of VPS hosting (virtual private server hosting) is to divide the resources of a single physical host machine into smaller “virtual servers.” This is accomplished with the use of specialized software, which allow multiple operating systems to be run on the same machine, at the same time. Technically, the operating systems are being virtualized on the kernel level — they are 100% separate and isolated, not simply different users within the same system.

The diagram below shows the difference between a traditional, single-purpose machine, and a machine utilizing virtualization software:

Virtualization Diagram

Virtualization technology allows us to colocate large and specialized machines in financial data centers, which the average trader or small business may not be able to justify the cost of. The colocated hardware is then “split” into several isolated VPS instances per machine, and leased as virtual server units to our clients.

In addition to the obvious cost benefits, there are numerous security and performance benefits of virtualized hosting. Because each VPS instance is completely isolated, but none has access to the physical machine’s core operating system, the uptime and security of the system as a whole can be more efficiently managed by our technicians.

For users, the primary advantage gained by virtualized hosting is the ease of performing platform upgrades and expansions. Resources from the physical host machine can be allocated to virtual servers instantly, and without interrupting the system’s performance for extended periods of time, unlike traditional hardware upgrades. This principle allows users to select only the resources they require, and expand as needed at a later time.

For more information about the specific benefits and features of forex VPS hosting, see: Forex VPS Features

[From the FXVM Blog: https://fxvm.net/blog/how-does-forex-vps-hosting-work/]

What is a Forex VPS?

If you are unfamiliar with “VPS” and other terminology, this article will help explain the goals of virtualized hosting.

“VPS” is an acronym for Virtual Private Server, sometimes referred to as a “VM” (virtual machine). It is a common variant of web hosting, and could also be called a variant of dedicated server hosting. Read more about the technical nature of a VPS below.

A datacenter, or data center, is a professional computer hosting facility where businesses locate physical hardware. This is done to benefit from direct connections to ISPs, and to access electrical and cooling resources required for 24x7x365 operation of computers.

The premise of a VPS is to leverage the advanced benefits of physical colocation in a datacenter, while providing an end-user service that is manageable and affordable. This is accomplished with the use of virtualization technologies (called hypervisors) that manage the partitioning, or virtualization, of physical hosts into smaller sub-units, where each sub-unit runs its own isolated operating system. It is akin to setting up multiple user accounts on a computer, and allowing all of them to be used at one time, with the crucial difference that each user has an entirely separate operating system.

As an example, a fully dedicated server may have dual 6-core CPUs for a total of 12 CPU cores, and 64GB of RAM (quite a lot compared to an average system). Using virtualization technology, this server can be divided into 8 sub-units, each with 8GB of RAM, 1 or 2 CPU cores, and a separate installation of Windows or Linux. The sub-unit can then be interfaced with as a completely separate system. One user could shut down or reboot, or even crash, without affecting the other users. This is the main advantage to virtualized hosting.

Virtualization plays a major role in many areas of business and IT, and it is also beginning to play a significant role in forex trading and the hosting of financial applications. Given that trading and financial applications often require more stability and faster connectivity than any other type of application, the benefits of virtualized hosting suit it perfectly:

  • Access to advanced hardware for a fraction of the full cost of colocating your own system.
  • As above, the ability to utilize top-tier data networks and connectivity, without owning the entire contract yourself.
  • Configuration of fail-over and high-availability systems, to ensure continuity of hosted applications.
  • Easy scalability, allowing you to start with only the resources you need, and expand later.
  • We perform professional maintenance and administration of the physical hardware and network components at no additional cost.

[From the FXVM Knowledgebase: https://fxvm.net/portal/knowledgebase/2/What-is-a-forexortrading-VPS.html]

Windows Server 2012 Screenshots – Forex VPS Template

Windows Server 2012 is the foundation of our primary forex VPS template. Its highly stable environment and efficient resource consumption make it ideal for hosting forex- and trading-related software. Below you can see a few screenshots from a default forex VPS deployment with Windows Server 2012:

Windows Server 2012 Template Forex VPS

Windows Server 2012 Template Forex VPS

Windows Server 2012 Template Forex VPS

Windows Server 2012 Template Forex VPS

Why to use a Forex VPS: Speed, Security, Accessibility

If you are wondering about the advantages of forex VPS hosting, this article will explain why VPS hosting is highly beneficial to trading. The benefits can be summarized in three primary areas:

I. Speed

The speed of order execution is usually of the highest importance for traders, especially for those who run automated trading systems. To achieve maximum performance for trading applications, it is necessary to host them as near as possible to the services and networks they will be interfacing with, such as brokers and other financial institutions, as well as account managers and signal providers. In the most common scenario, these networks are located at a few key points in New York City or London.

FXVM’s forex VPS hosting is an affordable and easy-to-manage way of obtaining connection speed that is very close to the fastest available for trading applications. In fact, we are confident enough to guarantee that our networks in New York and London deliver lower latency––meaning faster connectivity––to major brokers and financial networks than any other VPS solution, which will result in significantly improved order execution for your trades.

 

II. Security

Of no less importance, adequate system security is critical for all applications, whether an individual trader’s MetaTrader 4 platform or advanced backend financial software. There are implicit security benefits gained by offloading your software to a remote system; in addition, our Windows Server VPS templates are continuously updated to protect from intruders and other threats. On the physical hardware side, we have taken great care to prevent critical failures  by making each aspect of our platform redundant. Our host servers and core network components are monitored 24/7 for emerging issues or points of congestion, and are proactively managed by our 24/7 NOC team in conjunction with Technical Support.

 

III. Accessibility 

Just like a website would not be reliably accessible if it was hosted from a home or office computer (instead of a web hosting server), trading software becomes much more reliable when moved to a VPS or dedicated hosting solution. The tools and protocols built-in to our service, such as RDP (Remote Desktop) and VNC, allow you to easily connect to your forex VPS from anywhere, with no extra setup or configuration necessary. This allows for:

  • Starting MT4 or other applications on the remote VPS once, and keeping them online 24/7 throughout reboots of your local PC or disconnections from the internet.
  • Accessing your trading platform on-the-go or from different devices, like a PC, laptop, tablet, and phone, without interfering with the software running on the VPS.
  • Setting up multiple platforms or accounts on the same VPS, and delegating user access to allow multiple people to view the desktop simultaneously, all from separate locations.

 

+ IV. On-demand Upgrades

Hosting with virtualized infrastructure allows you to forego the work that goes into estimating capacity requirements and planning physical hardware upgrades, because resource allocations for VMs are handled “in the cloud.” Our platform can upgrade and downgrade systems, as well as provision new systems, on demand. This allows you to pay for only the resources you need.

 

If you are interested in forex VPS hosting, FXVM offers trading VPS plans starting at $19.95/mo. See Plans & Pricing here.

[From the FXVM Blog: https://fxvm.net/blog/why-use-forex-vps-trading/]