How does Forex VPS Hosting Work?

For those new to virtualized hosting paradigm, the technical concept of a forex VPS can be difficult to understand at first glance. In this article we aim to help explain exactly what’s going on “behind the scenes.”

The premise of VPS hosting (virtual private server hosting) is to divide the resources of a single physical host machine into smaller “virtual servers.” This is accomplished with the use of specialized software, which allow multiple operating systems to be run on the same machine, at the same time. Technically, the operating systems are being virtualized on the kernel level — they are 100% separate and isolated, not simply different users within the same system.

The diagram below shows the difference between a traditional, single-purpose machine, and a machine utilizing virtualization software:

Virtualization Diagram

Virtualization technology allows us to colocate large and specialized machines in financial data centers, which the average trader or small business may not be able to justify the cost of. The colocated hardware is then “split” into several isolated VPS instances per machine, and leased as virtual server units to our clients.

In addition to the obvious cost benefits, there are numerous security and performance benefits of virtualized hosting. Because each VPS instance is completely isolated, but none has access to the physical machine’s core operating system, the uptime and security of the system as a whole can be more efficiently managed by our technicians.

For users, the primary advantage gained by virtualized hosting is the ease of performing platform upgrades and expansions. Resources from the physical host machine can be allocated to virtual servers instantly, and without interrupting the system’s performance for extended periods of time, unlike traditional hardware upgrades. This principle allows users to select only the resources they require, and expand as needed at a later time.

For more information about the specific benefits and features of forex VPS hosting, see: Forex VPS Features

[From the FXVM Blog:]