Online trading is a very competitive industry where every second counts. Any delay in being able to place a trade may cost you money.
Many people starting out in online trading are reliant on their personal computers to execute their trades. This can be problematic as PC’s are subject to slow Internet connections, power outages, mechanical failure and potential damage from viruses and malware.
Professional traders always operate their business from a Virtual Private Server or VPS. A VPS is a powerful server, with its own dedicated high speed links to the Internet, used to manage your trading platform 24 hours a day.With a VPS you can trust that all your trades will be performed quickly and reliably.
How does it work?
Using a remote desktop client you can easily access the virtual server environment. Programs run on the hosted server – inside the virtual environment. This allows you to close the remote desktop client and even shut down your laptop, whilst leaving applications running normally inside the virtual server. A VPS also benefits from bandwidth – the kind of bandwidth only available in a large scale data center. Trading applications benefit from the extremely high speed Internet that the data center and low latency connectivity of a VPS provides.
If you have a desktop PC, you’re pretty much stuck trading wherever your computer is housed – at your house or office. While there are alternatives, perhaps you don’t feel like purchasing a laptop, or maybe your broker doesn’t offer an online trading platform and provides only a software download.
A VPS allows you to connect to your trading platform from any location so long as you have a network connection – even from a hotel or internet café! Since you’re not confined to your desk and you can trade anywhere, and since your system can execute trades even if your computer is off, you can feel more comfortable trading even while you’re asleep.
Speed and Latency
Latency is the physical delay caused by the electrical signals passing through the various copper and fiber infrastructure that make up the core of communications networks. In the context of online trading it can be considered the measure of the time it takes for a packet of information to reach your broker and come back.
Ultra-low latency trading offers tremendous advantages for the trader because price quotes are received and orders entered before most other traders receive the same quote. This is most valuable during periods of volatile market activity when prices change quickly and latency may affect pricing.
Low latency also offers the trader more reliable connectivity to the broker because there are fewer hops on the Internet for potential problems to impact the data transmission, requiring the data packet to be sent again at the expense of time.
FASTDOT hosts its VPS infrastructure in the state of the art Equinix Data Center, located in Alexandria, Sydney. Network provider to Australia’s leading telecommunications, government and financial institutions this amazing network infrastructure guarantees 99.99% uptime with low latency cross-connectivity between you and other brokers servers, leading to faster trades.
Your trade signal will, in many cases, be executed mere meters from where it originated from – ensuring the best possible conditions for your online trading activities.