Beginner’s Questions About Dedicated Servers for Forex Trading Answered

Most forex traders eventually transition from a public server to one with dedicated resources. There are many reasons for the move—from faster execution times to more control over your trading experience and tools. If you’re on the lookout for an upgrade, this article answers the five most common questions about dedicated servers for forex traders.

Frequently asked questions about dedicated servers for forex trading 

1. What is a dedicated server?

First things first, a dedicated server is a physical server assigned to you and your trading activity. It’s like having your own private computer in a data center with dedicated resources such as CPU, RAM, and storage. As the owner of a dedicated server, you have control of all the resources and don’t share the server with anyone. One of the main reasons why forex traders move to a dedicated server is lower latency compared to a virtual private server or public server.

2. How is a dedicated server different from a virtual private server (VPS)?

When you buy a dedicated server, you get the entire server for yourself with full access to its resources. This can be useful if you need exceptional speed, low latency, scalability, and can’t let even minor interruptions disrupt your trading activity. 

With a VPS, you share the physical server with other users, as it only gives you an allocated portion of resources. Transitioning from a VPS to a dedicated server is usually the next step as your trading activity increases. However, be mindful that a dedicated server is more expensive than a VPS.

3. Do I need technical knowledge to manage a dedicated server?

You need technical knowledge to set up and manage a dedicated server. You should understand how to install and configure your server with different operating systems, set security settings, and manage server resources. However, to make it easier, you can choose between managed and unmanaged servers. With a managed server, the provider helps set up and maintain server parameters and functions.

4. How to choose the right server provider?

To begin with, list the specifications and resources you need to run your trading operations, software, and tools. Look for trusted and popular providers with positive customer reviews. 

Once you find 5-10 service providers, compare their offerings like server specifications (CPU, RAM, storage), network speed and bandwidth, latency, scalability, uptime guarantees, server locations, and physical security of the installations. When you find providers that match your requirements, select the one with the best quality-to-price ratio.

5. What are the first steps after getting the server?

Setup steps might vary based on the service provider and its processes. Usually, you need to start with the initial security setup. To do so, you need to change default passwords, create a new admin user, disable root SSH login, configure SSH key authentication, and update firewall rules. Next, you need to update the operating system, configure backup processes, and install your trading software and other tools.