VPS hosting is undergoing a technological transformation in 2023. As a market valued at $4.26 billion in 2022, the emergence of cloud-based solutions and the increasing integration of AI could see VPS hosting worth more than $11 billion in just a few years.
As technological advances bolster server accessibility, performance and security, it’s no surprise that virtual private servers have become a top choice amongst business leaders, forex traders and brokers.
As we step into an automated tomorrow, what does the future hold for VPS? As experts tackle a rise in AI-powered cyber threats, how will VPS providers respond? From a call for containerisation to a push for cloud-based hosting, let’s see what we can expect from the VPS market in 2023.
What is VPS?
Unlike other hosting services, VPS hosting, otherwise known as a virtual private server, uses virtualisation technology to ensure that your files have a dedicated, private space on a server that hosts multiple users.
While VPS hosting is similar to a shared server, virtualisation technology ensures that there is a virtual layer placed on top of a traditional operating system. Better still, this layer is split into a number of segments allowing users to control how they store their files using their own OS and software.
“You can think of VPS hosting like living in a high-rise apartment complex,” says HostGator’s Kevin Wood. “The overall structure of the building is being shared between every apartment in the building. But, each apartment is completely isolated from one another. You can customize your space however you see fit, and you won’t have any issues with other apartments impacting your space.”
VPS hosting is quickly becoming a popular choice for a number of different use cases.
(Image Source: Eukhost)
From companies facing high traffic to forex traders prioritising high security and reliability, VPS acts in the same way as a dedicated server, but at a fraction of the price.
With this in mind, stick with us as we explore what the future could hold for virtually charged servers in 2023.
What is Forex VPS?
Forex VPS (Virtual Private Server) is essentially a link that connects your trading terminal to a wider network. By using forex VPS, you can execute trades 24/7 and never worry about losing your internet connection, getting your computer damaged or getting trade execution delays.
In a few words, forex VPS is a cloud version of your PC. This cloud version can be remotely operated from pretty much any device. Essentially, VPS allows traders to run automated trading and execute trades 24/7 with minimal latency, giving you the safety and security needed while trading currencies.
For instance, if you’re using MetaTrader 4/5 on your desktop computer, anything can happen to your computer at any time. With MetaTrader’s VPS hosting, you can stay connected to your broker’s server pretty much all the time, thereby allowing your trade robots to run all the time, analyse quotes, buy and sell.
How VPS is Used for Forex Trading
Although VPS is often associated with simply “powerful hosting”, VPS technology is also used for forex trading. The concepts are similar, however, there’s a slight difference in their purpose and target audience.
Forex VPS works in a very similar way to traditional VPS hosting. You would subscribe to a forex VPS plan and pay a monthly subscription fee.
MetaTrader, arguably the most popular forex trading platform among traders and brokers alike charge a fixed rate of $15/month for their forex VPS service. Due to increasing demand and interest from brokerages and users, they have recently implemented a major service update based on the accumulated experience and valuable feedback. With MT5’s VPS service, it has now become much simpler and easier for brokers to give their users access to a reliable and effective VPS service.
MetaTrader’s VPS is a natively integrated solution for professional social and algorithmic trading, which does not require further configurations. All of the apps and settings can be migrated in just a few clicks.
Benefits of Using Forex VPS
Forex VPS offers several benefits for traders. From internet uptime to minimising latency, there are many reasons why traders should consider opting for a VPS service.
Minimising Latency: One of the primary benefits of using a VPS is the significant reduction in latency or delay in trade execution. In other words, the time between when you click the button and the time it registers your order (this time could costs thousands of dollars, in some cases). VPS servers are usually located closer to major financial, allowing traders to save money by executing trades with minimal delay.
Reliability and Security: Forex VPS provides a stable and reliable trading environment. Unlike trading on a personal computer, which, as mentioned above, may be subject to internet outages, power failures, or system crashes, VPS ensures uninterrupted trading experience. MetaTrader’s VPS, for instance, offers an uptime of up to 99.99%, which is practically more reliable than any personal computer.
Accessibility: As mentioned above, one of the primary advantages of a forex VPS is its ability to offer trading bots to execute orders 24/7. Since the VPS servers are always up and running, traders can monitor their positions, execute trades, and utilise automated trading strategies without the need to keep their personal computer turned on or connected to the internet continuously.
Forecasting the Future Of Forex VPS
It’s no secret that the VPS landscape is evolving. As we become a digitally native generation, the demands for VPS solutions have risen, especially as we continue to connect with people from all over the globe.
However, continued use of the internet opens our data up to new cyber threats every day. As phishing scams multiply and cyberattacks increase exponentially, investing in a private and secure server is vital, no matter the size of the company.
Here are some of the changes we can expect to the VPS landscape as consumer demands for private servers evolve.
A Push For Cloud-Based VPS
It is all about scalability. VPS providers have quickly realised that every client has different needs and that no two businesses will use a server in the same way.
Therefore, a scalable future is on the horizon. While VPS provides users with a fixed resource allowance, a dedicated space and resilient cybersecurity protection, the introduction of a cloud-based partnership could see companies reaping the benefits of cloud hosting at a fraction of the price.
Tackling AI-Powered Cyber Threats
While AI’s evolution within the tech world hopes to revolutionise the performance of VPS servers, it is also responsible for a spike in security-based challenges for providers moving forward, especially when it comes to finance-rich industries like forex trading.
Cybercrime increased by 125% in 2022 and continues to threaten businesses in a post-Covid landscape.
“Artificial intelligence (AI) is revolutionising a range of industries. AI can help to monitor and detect threats, but it also poses new cyber security risks in 2023 and beyond. AI-powered attacks can automate the process of identifying vulnerabilities in a business’s security, making them harder to detect and defend against,” say experts at Croft Communications.
“This year, we expect to see an increase in AI-powered cyber attacks, including automated malware, botnets, and deepfake attacks. To mitigate these risks, your business should implement AI-based security measures, such as machine learning algorithms and behavioural analysis, to detect and prevent AI-powered attacks.”
Therefore, one of the key trends we can expect to see amongst VPS providers is a tightening of security measures and a push for multiple-factor authentication.
Improving Forex Trading
The evolution of smart VPS servers could also improve the FX trading landscape in 2023. As the forex Industry reaps the benefits of auto trading and the emergence of AI, the rise of cloud-based VPS could be the key to connecting with a wider trading network.
Using a cloud-based VPS ensures that you’re always connected to a fast-moving market and can open, close and amend your trades with ease, even when you lose an internet connection.
MetaTrader 5 is just one example of a reliable solution for automated trading. Benefiting both traders and brokers, users can enjoy smart resource allocation algorithms and maximum uptime of 99.99%.
An Adaptable Future
Entering a remote era of global corporate communication and mass file sharing, organisations have continued to move their data to the cloud.
As we watch cloud hosting trends develop, the future of VPS will be integrated into the cloud’s evolution.
Looking beyond 2023, VPS providers must adapt to new levels of automation and machine learning, as well as prepare for a bout of new cyber threats. From development to production, virtualisation will drive future hosting trends, placing VPS at the centre of tomorrow’s online landscape.
