Every second and even milliseconds matter in the world of forex trading. The genesis of this interesting development has been as a result of traders’ efforts to improve their trading environments and here comes affordable currency forex virtual private servers and cloud services. 

But which one is more commonly preferred by traders? In this article, we’re going to analyse each solution in great detail and highlight its advantages and disadvantages.

Advantages of Cheap VPS for Forex

Competing primarily on price is another appealing facet of the cheap Forex VPS. There is usually a more minor monthly cost than most cloud services, with some providers featuring basic packages of $10 or $20 per month. This usually concerns the subscriber of forex-related software licences and is advantageous to persons new to trading or those with limited finances.

A huge plus of the Forex VPS solutions is that they are tailored for trading. They have all the required trading applications like MT4, MT5, and cTrader that free up the traders’ precious installation time. The network configurations are also adjusted so latencies are as low as possible. Some providers have installed trading tools and even Expert Advisors ready for traders.

Several providers make their server facilities attractive to foreign exchange centres like London and New York. This is important because it helps cut the latency to about 1-2 ms for Forex brokers around the same vicinity, which is essential for high-frequency and scalping where fractions of time count.

Cheap Forex VPS provides dedicated resources to traders. You are guaranteed CPU, RAM, and storage resources that are only available to you and not shared with other customers, as is the case in a shared hosting environment. This ensures steady performance even during extreme market volatility when execution must be a hundred percent. Some providers will even go as far as ensuring that a customer has some CPU and RAM availability even if they are not using it.

Disadvantages of Affordable Forex VPS Host

Despite its benefits, Forex VPS service for cheap plans has its downsides. For example, there can be a significant limitation with the growth. When more excellent resources are necessitated, it means that one has to change a plan, which sometimes may entail movement to a different server, which may take time. The constraints on such facilities may be a drawback to traders if the demand for resources is not constant and the trader’s strategies tend to change with time.

Additionally, regarding affordability, there is the risk of overselling, whereby some cheap Forex VPS providers may over-promise or overbook services they do not have available within their means. In such cases, traders will encounter performance problems, especially when the number of trades is very high, where, for example, one is forced to wait longer than usual response times. Thus, checking reviews about the provider is necessary and should not be disregarded.

Also, as observed with specialised platforms, changes to cheaper VPS hosts tend to port less adaptability. These are often restricted only to Windows Operating Systems, which might not go well with certain traders. Moreover, due to the same reasons, they might not be able to incorporate some programmes or tools relevant to advanced trading practises, making it impractical to operate trading applications alongside non-trading ones.

Cloud Services for Forex Trading

Cloud services provided by the industry leaders such as Amazon Web Services (AWS), Google Cloud, and Microsoft Azure provide access to the virtualisation of the resources which, among other things, can be employed for forex trading.

Pros of Cloud Services

Among the numerous advantages of cloud services, their high scalability is one of the most astonishing. Forex traders can have resources enhanced or reduced whenever required, frequently in real time. In this regard, it is possible to quickly respond to changing market circumstances or strategy needs. For example, you may increase during turbulent events and then decrease during quiet times, thus saving costs and improving performance.

One of the strong benefits of global cloud vendors is accuracy. They provide strong infrastructure which guarantees high uptime of service availability, often emobiles 99.99% or more. As an added benefit, built-in redundancy and backup systems, and automatic failover devices serve to prevent interruptions in trading which ensures that the strategies can run without being interrupted.

Cloud services are also known for the enhanced security features. They provide strong security functions such as custom protocols that are updated consistently, additional encryption options, and micro-level access permissions. There are a number of providers who uphold specific security standards which assist the trader to be at ease knowing that the data and trading activities are stored order.

Cons of Cloud Services

Cost is one of the disadvantages that users will face when adopting cloud services when it comes to forex trading. They can even be costlier than affordable Forex VPS and especially at higher levels. The pricing approach seems to be complicated with different pricing categories for every resource such as the computing capacity, storage space and movement or transfer of data. Without proper cost control, costs can grow at an alarming rate which can reduce any profits made in trading.

Another downside is complexity when utilising the cloud for forex trading. Designing and implementing the optimal environment for internet-based trading takes more skills in as opposed to when one uses a dedicated Forex VPS. There is more to learn for those ignorant of cloud infrastructure, and some traders may be required to outsource the initial setup and maintenance to a professional.

In contrast with sole usage of Forex VPS solutions, cloud services, including cloud computing are not oriented on the trading activities, and therefore they may require extra setup to function as forex brokerage software, while also not having any forex automated setup characteristics. 

Finally, such tools as cloud services might be excessive for the very specific clients. The bulk of the strength of the existing features will most probably not be used by average traders and there might be too many options even for beginner or ‘light’ users who have very basic setups.