“A 5 millisecond server delay could cost a firm as much as 4 million USD every millisecond”
Have you ever given thought to the server technology that powers your online trading? If you haven’t yet, then you should.
The server technology used to power your trading can play a powerful role in your performance and can be the difference between a good deal and a bad one. While you may be adept at currency trading, the fact is traders are regularly passing up opportunities for success by not understanding the basics and importance of Forex server setups and choices. Getting into trading without understanding the technology behind it is like wading into battle without any armour! It increases risk. Online trading platforms can play a key role in your trading. So how much do you really know about them?
There are several main server factors that impact trader performance. Every millisecond counts, and can be the difference between a transaction’s resulting in profit or loss. The server technology is paramount because unlike the stock market, the Forex is a network has no central location – all trading is done using them. And with an estimated daily trading volume of almost $4 trillion dollars, the stakes are high when it comes to transmitting information across servers.
VPS or Virtual Private Servers are most widely used and allow traders to trade directly from just about anywhere in the world. They are often fast, secure and reliable but there are a number of things to consider when using a VPS, which might impact upon your performance.
Server uptime – Naturally, servers have their problems at one point or another, but it is vital for traders that they experience no down time during the year. The last thing you want is a crash or unexpected downtime when it comes to trading, so choose a server that has a proven and trusted operating system that is monitored 24/7 for 100% server uptime, and choose one that is in a location that is secure from natural disasters and has good backup power solutions.
Server speed – This is arguably the most important. When discussing server speed you will often here the terms latency and slippage. A latency, or delay, is a term that signifies the difference between a command being placed and executed. Or in short, the time it takes from when you hit the “enter” button for that command to be carried out. Slippage – the time it takes between when you place a trade and for it to be executed by the server – is also important. You want to choose a fast server that’s provides low latency and slippage for the swiftest execution, so the price you want is the price you get. Currency can move a few pips in just a few milliseconds, so speed is key.
Server security – Opt for a server provider that offers top notch security for both your trading purposes and your personal information. Encryption tools like Guardian allow you to protect your EAs for optimum secure trading.
The face of Forex trading is ever-changing. For example, the advent of Cloud technology is allowing more flexibility, and is becoming an increasingly-popular medium due to improved security capability and its ability to allow traders to get closer to certain locations. Choosing a trusted service provider like Artmotion of Switzerland will result in faster, more accurate trading from anywhere in the world, as will keeping abreast of new technologies and developments in the market. With the right research, you’ll find the right Forex VPS for you and enjoy a fast, secure connection and 24/7 trading.
About the Author: Mateo Meier, Technical Director of Artmotion GmbH of Switzerland. We are a specialist server hosting company that supports many financial institutions.
