A reader emailed me and asked if I could recommend a quality/affordable Metatrader VPS (Virtual Private Server) service.
There's one that I recommend here.
But there is also an alternative that some people may not be aware of.
…and it can save you quite a bit of money, over the long run.
In this post, I'm going to tell you what a VPS is for, the benefits and drawbacks and a cheaper (and almost as effective) alternative.
Then I will show you exactly how to set up this DIY VPS solution.
Let's do this…
What is A VPS and What is it For?
A virtual private server is an installation of Windows that is running on a hosting company's server.
Just like a website is hosted at a hosting company, you can also host an installation of Windows at a hosting company.
Then you can login to your virtual computer from any other computer with internet access and use the VPS machine like it was a computer sitting at your desk.
This is useful for people who run Expert Advisers (EA), alert indicators or any automated trading programs in Metatrader.
Since the VPS is running 24/7, the EA will always be available to take trades.
If you choose a VPS that is near your broker, you may benefit from faster connection speeds.
Using a VPS is also very helpful if you have an indicator in Metatrader that gives trading alerts.
You can use it to send you a text message or send you an alert in the Metatrader app if you have a smartphone.
The advantage of using a VPS is primarily the uptime.
You do not need to worry about power outages at your home or your cable internet going on the blink again.
The downside is that it costs some money every month and it can really eat into your trading profits, especially if you are trading a small account.
As we will see, the cost can really add up.
The Savings
Let's get down to numbers.
A DIY Metatrader VPS can save you as much as $720 per year.
How did I come up wth this number?
If you look at this chart from Earn Forex, there can be a wide range of prices when it comes to purchasing a VPS service.
At the high end of the spectrum is a VPS that costs $60 per month.
That's where I get the $720 per year figure from.
If you are on a budget, that can be pretty steep…can we do better?
We sure can…
The Forex Trading VPS Alternative
I'm going to teach you how to keep a computer running at your home that:
- Uses very little electricity
- Is very low cost
- Takes up very little space
- Has more than enough power
- Has no additional monthly cost (except for the electricity)
- Can be accessed remotely from another computer.
Of course, this may not be for everyone.
My forex trading VPS alternative assumes three things:
- You have a reliable internet connection running at your home.
- You have a little bit of technical skills and can follow a few directions to get things working.
- You do not have frequent power outages in your neighborhood.
If any of the above are an issue for you, then a hosted VPS may be a better solution.
But if you are OK with the above, let's get started.
Step 1 – Buy A Netbook or Cheap Laptop
This will be the only cost that you will incur.
Although it will cost some money up front, you won't have to worry about high monthly fees later.
I recommend a netbook because they:
- Use very little electricity
- Are compact
- Have more than enough power
- Are inexpensive, you can get a used one off eBay for between $80-$250
- The monitor is built in
I was able to get a Asus Eee PC 900 series netbook on eBay for $85, including shipping.
It is actually in really good condition.
The only downside is that the top cover is lavender (not shown).
You could also get a newer Windows tablet or laptop that can run MT4.
I use it to run my Metatrader indicators with alerts.
This is a super low end example, but you can scale up from here.
Here is a picture:
Here are the specs on this little guy:
- Processor: 900Mhz Celeron M
- Memory: 512 MB
- Hard Drive: 8 GB solid state
- Operating System: Windows XP
Let's compare that to a typical VPS (I wasn't able to get specs on the $60 VPS, but here are specs from another host at a similar cost):
- Processor: Intel Xenon
- Memory: 8192 MB
- Hard Drive: 80 GB
- Operating System: Unix
So the VPS is much more powerful, but do you really need all that power?
In my experience, not really.
If you are just running Metatrader, you do not need a lot of disk space, memory or processor power.
However, if you will be running multiple EAs at once, you should buy a slightly more powerful computer.
This is a really bare bones system, but if you want something more powerful, you can spend a couple hundred and still get a really good laptop.
It would still be a huge savings over a high end VPS server.
I have used a netbook in the past and really liked it, but there were just too many limitations to use it as my primary computer, so I switched to a Mac.
But it's perfect as a VPS alternative, especially when you can get one for as cheap as I did.
So install MT4 on your computer and you are good to go!
You can also consider buying a mini computer, but you'll need to hook it up to a monitor.
Step 2 – Sign Up For NO-IP
Now that you have a PC to run Windows and Metatrader, you will need to be able to log into the netbook while you are on the road.
One way that you can do this is to setup a free account with NO-IP.
NO-IP basically allows your remote computer to securely find your netbook from outside your home network.
You just install a small NO-IP program on your netbook and when you are on the road, you can login to your netbook just like it was on your local network.
Just use the Remote Desktop Connection feature in Windows and you are all set.
But before you are able to do that, you need to do one more thing…
Step 3 – Set Up Your Router
Your home router will have to be setup to allow the connection to your netbook, remotely.
This may seem a little complicated at first, but it is not actually that hard.
Just follow the guides that NO-IP provides.
If you do not feel comfortable doing this yourself, then I would recommend finding a more tech savvy person to help you.
Step 4 – Setup MetaTrader to Send Alerts (Optional)
Now setup MetaTrader on your new server to send alerts to your mobile device.
If you don't have an alert indicator, then you can still send trade notifications to your phone or tablet.
This will allow you to easily monitor your server and make sure that it's working.
Remote Connection Alternatives
The obvious alternative is Windows Remote Desktop. They have a Mac app that you can use to connect to your at-home VPS.
You do not need step 2 and 3 above if you're only going to access your server from your home network.
But it's a good idea to setup remote access in case something goes wrong and you're away from home.
If you cannot Windows Remote Desktop Connection, you can also use a VNC program like UltraVNC.
It is also free, but if you have Windows, it can be less complicated to use Remote Desktop in instead of UltraVNC.
There are programs like TeamViewer, which allow you to connect to your home computer while you are on the road.
I have not used TeamViewer for trading, so I cannot give you an honest review of it.
Conclusion
So that is how you can save $720 per year on a VPS system and get a system that can work almost as well.
Again, this might not work for everyone, but it can be a significant cost savings over a hosted solution.
If you are still in doubt about what to do, give both solutions a try for a month and see what works best for you.
If the netbook solution doesn't work for you, you can always sell it to someone else on eBay.
Just be sure you get a good deal when you buy, so you don't lose money later.
Make it a good trade. 🙂
Again, the only downside with this solution is that you are relying on your home internet connection and power source, which may or not be reliable.
Therefore, when you have the budget to upgrade your Metatrader VPS solution, I would highly recommend going with this VPS host.
Also, don't forget your VPN, for when you are connecting to your VPS, from outside your home.
