FX Traders Speed Up Forex Markets With VPS Adoption

There are many considerations that go into making a successful forex trader such as research, leverage, and choice of brokerage, but one fundamental area of the FX ecosystem is simply essential for executing the best trades with efficiency: speed. 

The FX market’s need for speed has never been more pronounced. In 2022, it was reported that global currency trading had surged to $7.5 trillion per day, representing an increase in volume of 14% on 2019 figures. 

For traders eager to ensure that they secure the best value when executing trades, this increased volume means that there’s invariably a greater rush for the most advantageous prices. 

The subject of execution speeds in forex trading has long been cause for investor discomfort. Given that forex spot prices frequently update, perceived ‘speed bumps’ during a trade can be associated with significant losses. 

It’s for this reason that when Goldman Sachs disclosed that it imposed 200-millisecond speed bumps on forex spot trades to monitor whether a client’s trading activity would move the price of a currency beyond a given threshold, it was met with concern among traders seeking better value. 

Because forex spot prices change at five-millisecond intervals, a prospective 200 millisecond speed bump would allow liquidity providers to see 40 price updates before deciding whether to accept a trade or reject it. 

These added instances of friction can lead to more trade rejections and severely impact profit margins for traders. It’s for this reason that more traders are taking the step of removing as much friction as possible by utilizing a virtual private server (VPS). 

The Need For Speed

Speed can be a key factor in executing trades in FX, due to the fast-paced nature of the markets. If a trader identifies an asset that’s close to breaking through a key resistance level, it’s essential that they’re able to act fast to execute the trade in a swift enough manner to maximize their profit margins. 

With mere milliseconds between a desirable price and weaker margins, it’s imperative that there are zero processes that could get in the way of making a trade at the right time. 

It’s generally accepted in the world of forex that any time under 0.1 seconds can be regarded as high performance, with the closer to zero that traders can get to represent the best opportunity to execute the right trades at the right time. 

Because of the five millisecond slippage that impacts markets, for brokers, it can be difficult to offer traders the rates that they expect if they’re operating at a speed that’s slower than 0.1 seconds. This is because there’s no guarantee that the price traders see will be the same as the one they receive. 

With forex prone to significant price fluctuations, at a frequent pace, traders are prioritizing speed as a key tool in the battle to gain the best possible value for their trades. 

It’s this pursuit that’s resulted in the growth of virtual private servers among traders, and with speeds that are capable of surpassing the pace of FX spot price changes, VPS appears to be a suitable solution in forex’s need for speed. 

Outpacing The Markets with VPS

While there are many processes that work in tandem to execute a forex trade that could bring the overall speed of a transaction down, more traders are utilizing virtual private servers as a solution that’s largely unrivalled in terms of minimizing friction during the execution process. 

Although the prospect of a trade that can be executed pretty fast, a reliable VPS can eliminate much of the friction associated with FX trading and generate speeds that are capable of keeping up with FX spot price changes. 

With the MetaTrader 5 VPS, traders have the ability to connect to over a dozen hosting points around the world, helping to leverage access with less than five milliseconds for as much as 82% of all brokerage servers. 

This is a crucial metric for traders seeking to execute spot trades at the prices they want and at the right time. Furthermore, MetaQuotes’ servers ensure 99.99% uptime, helping users to run their trading strategies on a 24/7 basis whilst never missing an opportunity. 

As the data above shows, MetaTrader’s VPS speeds, when considering factors causing friction like analysis delays, trade requests, and the ping to the designated broker, the MetaTrader 5 VPS can outpace traditional home PCs and regular VPS speeds by over 200 milliseconds. 

Frictionless Autonomy

In terms of speeding up forex markets, a suitable VPS has the power to do much more than simply remove the friction experienced in leveraging trades. It can also unlock a more perpetual level of connectivity to FX markets. 

Crucially, your virtual private server can pave the way for around-the-clock uptime for traders even when they’re away from their home or their computer is switched off. 

This means that traders can incorporate their expert advisors and trading bots, run them through their dedicated VPS, and allow them to operate on a fully autonomous basis. 

Although this is an entirely achievable means of bolstering the efficiency of traders, it’s important to conduct sufficient research in the VPS market to discover which virtual private servers are compatible with the right forex software and apps. 

Unlocking New Efficiency In Forex

When it comes to the rapidly growing world of forex, incorporating expert advisors and trading bots can be an efficient means of making money through spot trading. 

The sustained growth of trading volume in recent years means that traders must work harder to discover and execute the right trades before an opportunity is lost. Here, utilizing a VPS can be an excellent way of overcoming existing ‘speed bumps’ and gaining the level of perpetual uptime that can empower bots and expert advisors to continue making fast-paced trades with accuracy and efficiency.