What is a proxy server?
A proxy server is a server that acts as an intermediary between a client and your main trading server. A proxy server can be used for a variety of purposes, such as increasing data transfer speeds., boosting network connectivity, and improving network security.
How does a proxy server work?
A proxy server works by facilitating data requests and responses between your client and your main trading server. Typically, when making a trade, your client sends a data request from their trading terminal to your main trading server. The trading data server then processes the request, and sends a response directly back to your client. However, when using a proxy server, the first point of contact is the proxy server. So, when making a trade, your client sends a data request from their trading terminal to the proxy server. The proxy server processes the request and then, it either forwards it to your main server, or sends a response directly back to your client.
How does a proxy server increase data transfer speeds?
A proxy server can help shorten the distance that data needs to travel to reach your main server. For data to be transmitted, there needs to be both a data source and a data destination. The further the data has to travel between these two points, the longer the transmission will take. Ideally, brokers need proxy servers that are close to their clients. This is so that they can send and receive data more quickly. By having proxy servers in key locations, they can reduce the distance between data points. This is better for traders because they need fast data transmission to be able to trade profitably.
How does a proxy server boost network connectivity?
A proxy server can help detect connectivity issues between your client and your main trading server. In some cases, connectivity problems are related to issues that clients are having, such as outdated software or a bad internet connection. In other more serious cases, connectivity issues are due to problems that you’re having, such as overwhelmed servers. Network disconnections are sadly quite common in any company. Whether it’s a software issue, a hardware issue, you can use proxy server solutions to find and solve your connectivity problems.
How does a proxy server improve network security?
A proxy server can help detect and block external threats, such as DDoS attacks. A DDoS attack is when a person (or organisation) tries to crash your company website or online services. In most cases, they do this by flooding your network resources with too much traffic, and reducing your ability to provide online trading services. If someone does attempt to carry out a DDoS attack, a proxy server will act as an intermediary point, intercepting malicious traffic, and preventing it from reaching your main trading servers. In these cases, if you have a large network of proxy servers, any non-malicious traffic from legitimate clients will still reach your main servers, via safer routes, and your services will continue to operate as normal.
Why should forex brokers use proxy servers?
A proxy server can help support your trading infrastructure and enable you to offer a better, faster trading service. It can help you gain new clients, through improved reputation, and better customer experience. It can also keep your existing clients safe, through increased network security.
About MT Proxy
MT Proxy provides robust, custom-built proxy server solutions. We specialise in helping brokers speed up data transmission between their main servers and their clients. If you would like to know more about how brokers can reduce excess latency, feel free to sign up for our free trial.