What are the best VPS for algo trading? In this article you will discover what a VPS is, what its advantages are, and we'll tell you the best ones for your business as a trader.
A "Virtual Private Server" (VPS) is an isolated environment created on a physical server by virtualization technology.
This definition, however precise, is perhaps difficult to understand. So let's take a step back to understand exactly what a VPS is.
Let's start with the word "Server". Simply put, a server is a powerful computer that stores data, information, and virtual files. Servers are used in many situations: for example, right now you are reading an article from a blog "hosted" on a server.
Then we have the word "Virtual". VPSs use a type of virtual technology to break down the servers we've talked about into multiple virtual servers. Each "sub-server" (i.e. VPS) behaves as if it were a server in its own right. To use an analogy: a server is like an apartment building and a VPS is like an apartment within that building.
Then we get to "Private". There is not much to explain here: a private server is reserved for a single user, who therefore does not have to share data with other users.
Enough with the technicalities, but if you want to know more we recommend you watch this video in which we talk about VPS for trading:
Simply put, a VPS guarantees you reliability. In fact, a VPS is the only solution that guarantees your trading infrastructure a fast internet connection.
A VPS also guarantees a network productivity of 99.95%. In short, you don't have to worry about the network changes that you may sometimes run into when using your home router.
Another fundamentally important aspect is that a VPS gives you the ability to continue trading even if the power goes out. This is a real advantage if you trade automatically, as your systems will continue to work for you even if you can't access the network.
Let's check out some of the best VPS on the market.
OVH is the VPS of a world-class French company. This company boasts an excellent reputation and is very widespread, having servers all over the world. This is an advantage because it allows you to choose where you want your server to be hosted. They've recently added several servers in North America, a possible perk if you're interested in operating in that market.
2. Speedy Trading Servers
This is a great choice for those who want a "ready-made" solution. In addition, Speedy Trading Servers offers very competitive prices while having a remarkable order execution speed. Their servers are in Chicago, a short distance from the CME (Chicago Mercantile Exchange). Another excellent choice for those interested in the North American market.
AWS (Amazon Web Services) is a branch of the ubiquitous Amazon. It offers hosting solutions, and in this case, VPS hosting solutions. The advantages of this solution are definitely security and reliability, given that Amazon is one of the largest companies on the planet. However, we would advise against this solution to newbies. The interface of the service is quite complex. At any rate, it remains a valid option for those who are more technologically inclined.
4. Microsoft Azure
The same applies to Microsoft Azure. On one hand the service offers security and reliability, on the other hand it presents an interface that's not very beginner-friendly.
Vultr is a very good provider with 14 data centers around the world. They have a reliable history, ensuring an average network productivity of 99.99%.
Soyoustart has 28 data centers in the world and offers great services at competitive prices. However, it is of note that some users have complained about customer service not always being at the top.
This German provider with servers in Munich offers very good performance at rather affordable prices.
Finally, we mention an Italian provider that has been a leader in the hosting and web services sector for several years.
We have already mentioned that a VPS offers more reliability, but this tool also guarantees other advantages that we now analyze briefly.
Autonomy: A VPS operates autonomously as a real computer, so it guarantees the flexibility that we traders need. In addition, a VPS supports the operating systems of your choice and gives you full control, as if you were using your computer.
Reduces latency: Using a VPS can come in very handy even if you are a discretionary trader. A VPS allows you to make your trades more efficiently than a normal computer, since it can transmit orders much faster.
Security: The best VPS (for example, those listed above) are managed by very solid companies that offer a high level of security. VPS are constantly monitored and some companies offer protection software such as antivirus in order to protect your operations as much as possible.
We hope with this article that we have helped you understand the importance of VPS in your business as a trader. A VPS provides security to your business that lets you trade efficiently and sleep soundly.
There are of course other considerations to be made on this topic, but in this article we stop here. If you are interested in diving deeper, you can watch our video below on the topic of VPS security.