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Forex VPS versus Dedicated Forex Server

While comparing different Forex server options, you have probably come across mentions of kinds of hosting models such as virtual private servers (Forex VPS) and dedicated Forex Servers. It’s essential to choose the service that would best suit your needs. In this post, I have collected information about these two different Forex server options to help you to decide.

With dedicated forex server plans, there’s only one user who gets to use all the hardware on the server. In contrast, with a Forex VPS hosting plan the server’s devices can be used by some different users.

A dedicated Forex server can be thought in a similar way to your own regular computer. You own all the hardware, and you and you alone have access to all the resources available.

A Forex VPS, however, can be likened to a computer that’s being shared by multiple users. Imagine an office with a single computer and four employees. An individual mouse, keyboard and screen are hooked up to the computer for each user. In total, this one computer has four monitors, four keyboards, and four mice. Each user is running a separate version of Windows, and each user is allotted a maximum of exactly one-fourth of the available disk space, memory, and CPU speed.

Forex VPS servers use “virtualisation” technologies to split their resources between multiple users effectively. If the hardware consists of a 500GB hard drive, 12GB of memory, and four people use the hardware, they will each get 125GB of storage space and 3GB of memory.

MAIN DIFFERENCES

It’s important to understand that the only differences between Forex VPS and dedicated Forex servers that are worth highlighting all stem from how the hardware is used. Both VPS and dedicated servers can offer low-end and high-end servers, and both can be blazing fast! Likewise, both services can come with automatic malware scanning and removal, yearly security audits, and more.
Some packages will include specific services for free, some will need you to pay a little extra; you’ll need to take a close look at the particular management services offered by whichever hosting company you’re considering.

Now, let’s turn our attention to the differences that stem from the architectures of the two types of services.

COST

This one is pure economics. If we can put more people on the same server, we can make these packages cheaper because their costs per customer will be lower. This makes Forex VPS options less expensive than their dedicated counterparts. Our Low latency Forex VPS service start at $4.99/month. Our dedicated Forex servers start at $119.99/month dedicated server. Depending on your own particular needs, the price goes up to $479.99/month — though this is usually for traders with high-frequency trading.

SECURITY

Dedicated Forex servers are generally said to be more secure than Forex VPS. This is because in addition to all the usual threats that any hosting plan must face, VPS servers have a particular weakness that dedicated don’t: the hypervisor.

Aside from having the coolest name ever, the hypervisor handles creating and managing each of the virtual machines (allotments) on the server. Most viruses only affect one virtual machine (i.e. a single user account), but in some sporadic cases, they may actually be advanced enough to bypass the hypervisor entirely, spreading to all the accounts on the server.

CONFIGURATION

Configuration is one aspect where dedicated Forex servers really stand out. Because you’re the only user on the system, you have near total control over everything and can, therefore, do pretty much whatever you want with it — right down to changing various parts of its core software and or hardware.

By having full control over the server, you’ll be able to (as long as you have the skills) put together a configuration that’s just right for whatever site you’re running. Most users won’t ever need to — or want to — play around with such settings, but for those who need a particular configuration to run a highly specialised application or other special cases, a dedicated server will likely be the only viable choice.

PERFORMANCE

Performance is mostly related to the server’s hardware specifications. Given two servers with the same specifications, dedicated servers will always have a performance advantage over Forex VPS— because they don’t have to share the resources between users and with a VPS server. It follows then that the very high-end server configurations only really exist for dedicated users. If you really need a monster amount of trading platforms to power it, then you’ll just be able to get this kind of power from one or multiple dedicated servers.

How To Choose Between Forex VPS And Dedicated Forex Server?

First, let’s rule out the cost. If your trading isn’t yet generating enough to afford a dedicated server, then Forex VPS hosting will almost certainly be an excellent choice. In fact, I generally recommend Forex VPS to nearly all traders. A good rule of thumb to follow is this: If your trading profits aren’t generating enough money to cover the costs of a dedicated server, then chances are you’re nowhere near needing one.

Security is also easy to rule out. The additional security risk of a virus bypassing the hypervisor is so small that it rarely happens. However, you may want to consider a dedicated Forex server for extra peace of mind. It’s worth noting though that there is no server in the world which is safe from attack if someone is bent on gaining access.

In my experience, the choice usually boils down to configuration and performance. For instance, if you absolutely must use a Forex server with a particular hardware configuration, you’ll need to go with a dedicated service that allows you to assemble your own physical server. Likewise, if you need to install special trading software, or you want to tune your hardware to make your software run as efficiently as possible, dedicated may be the only way to go.

Performance is a tricky issue. It’s all about hardware configuration. Not all dedicated Forex servers are faster than Forex VPS servers — and some may even be slower than Forex VPS servers.

Conclusion

You should now have a good understanding of the various differences between dedicated Forex servers and Forex VPS. If money really is no object, however, then there’s nothing wrong with grabbing a dedicated Forex server. In some cases, it may actually be the only sensible option!