Why You Need An Alternative to VPS Services

Why Forex Brokers Need Alternatives To VPS Services

Many forex brokers use virtual private servers to manage the data flow between their clients and their trading servers. In this article, we’ll look at the advantages of VPS services for forex brokers and an affordable alternative for their busy IT teams.

What is a VPS service?

VPS stands for virtual private server. A server is a type of computer that stores all your website data and/or files. Each time someone visits your website or files, the server serves up this information via the internet so that the person can access and use the information.

A virtual private server works in a similar way. The main difference is that the virtualization technology used in virtual private servers allows one physical server to be split into several individual virtual servers. Although these virtual private servers all run on one physical server, they operate independently of one another. This means that (for a dedicated VPS) each virtual private server has its own server resources and that the VPS owner doesn’t have to share resources (RAM, CPU, or data) with any of the other VPS owners on that server.

Why do many forex brokers choose to use a VPS service?

VPS services are designed to help companies deal with large volumes of traffic and server requests. They are also designed to offer companies an affordable way to improve their network security and performance. As such, many forex brokers use VPS services to help them offer a better, more secure online trading experience to their clients

1 – Performance

Virtual private servers are a great way for forex brokers to reduce latency. For example, many brokers use VPS services to set up and host their proxy servers in key locations around the world. They then use these proxy servers to manage client-side data transfers and increase their data transfer speeds. This, in turn, enables them to offer their clients better connectivity, more consistent price streaming, faster trade execution, and less risk of slippage.

2 – Affordability

Virtual private servers are also a great way for brokers to improve their trading infrastructure. In order to further reduce latency, brokers need to have access to more servers in more locations. However, purchasing and setting up proxy servers using dedicated servers in different locations around the world is very expensive. By opting for VPSs, forex brokers are able to increase their network size without significantly increasing their network cost. As such, they are able to scale their infrastructure in a way that is both affordable and sustainable

3 – Security

Virtual private servers are also a great way of improving network security. In order to improve network security, forex brokers should do their best to prevent malicious traffic from reaching their main trading servers. Virtual private servers can help with this. This is because the virtual private servers can also be set up in a way that helps brokers to identify suspicious traffic, intercept malicious data transfers, and prevent attacks from affecting the main servers. and is mostly located outside the company’s main server network, keeping databases etc safe

What are the main challenges forex brokers face when using a VPS service?

Having a network of virtual private servers can be highly beneficial for forex brokers. However, setting up that network is no easy feat. Here’s why.

1 – Configuration

A forex broker with a large, international client base will need a large number of proxy servers in order to better serve its clients. Each of these proxy servers needs to be set up on its own virtual private server. As such, large brokers often need a large number of virtual private servers as well. This can make it very difficult to manage and configure a network.

For example, a large forex broker may need more than 200 virtual private servers in order to host all of their proxy servers. Managing a network that big can take up a lot of time and resources. This is because it involves finding the best server providers, the best server locations, and the best VPS network configuration. It also involves setting up all of the individual proxy server applications, as well as the accompanying security protocols and service windows. And then, once the network is ready, it also involves continually monitoring each server for security and/or performance issues.

For this reason, forex brokers who want to use a VPS service need to consider whether they have the resources to configure and manage a VPS network in-house.

2 – Connectivity

Forex brokers also need to find a VPS service provider with good local and international routes. A forex broker with a large, international client base will need to be able to support clients living in all corners of the world. This means that they need a VPS provider that can offer virtual proxy servers in more remote locations. They also need to be sure that their chosen VPS provider has the necessary internet connections to be able to provide fast routes towards both the clients and the main servers.

For example, let’s look at data transfers going from Singapore to New York. In Singapore, there are many local internet providers that connect to local clients and internet exchanges. There are also several large international internet providers, such as level3, NTT, IPTP, TIC. Each of these internet providers, both local and international, have different priorities when it comes to traffic speed, traffic volume, and service cost. This makes sending traffic from Singapore to New York quite challenging. For example, a VPS provider might choose to work with a small local internet provider, and this local provider might decide to only work with Level3. This means a forex broker using that particular VPS service is also stuck using Level3’s preferred routes to New York – even if those routes are slower or more expensive. For this reason, forex brokers who want to use a VPS service also need to be very careful about which VPS providers they choose.

Is there an affordable alternative to using VPS services?

Yes, of course! That’s where MT Proxy comes in. MT Proxy offers a fully managed proxy server solution. We set up your proxy server network for you, and we choose the best proxy server locations based on actual client data. We also use our personal connections and our extensive knowledge of internet service providers to make sure you get the best available connection routes. What’s more, we also monitor server performance in real-time. We automatically detect and respond to any potential proxy server outages or disconnections. This high level of support allows brokers to prevent major service disruptions and to better protect their business from the potential costs of server failures.

The result? You get all of the benefits of a VPS service – improved performance, better security, and greater affordability – without actually having to set up a VPS network. And we take care of your entire proxy server network for you, leaving you free to focus on your clients. If you would like to know more about how brokers can reduce excess latency, feel free to sign up for our free trial.

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