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One of the biggest mistakes an algo trader or a forex broker can make is choosing a VPS or
server with a low clock frequency processor (CPU).
Running an algorithmic trading strategy on a faster computer reduces slippage, increases
precision, and ultimately improves profitability. An algo trader with a faster computer has a clear
advantage over an algo trader with a slower computer. Forex brokers with faster computers can
deliver faster execution.
The heart of a computer is the Central Processing Unit (CPU). The CPU processes instructions in
an assembly-line manner. This “assembly line” follows a step-by-step pattern called a cycle.
Recommended Forex VPS CPU Clock Frequencies
- 3 GHz to 3.6 GHz – Suitable for less latency-sensitive algorithms (e.g., MT5 strategies with an hourly or higher chart resolution).
- 3.6 GHz to 4 GHz – Suitable for latency-sensitive algorithms (e.g., strategies with 1–5- minute chart resolutions).
- 4 GHz and higher – Required for latency-dependent trading strategies (e.g., forex arbitrage).
VPS with CPU clock frequencies below 3 GHz is recommended for email servers, websitehosting, etc., but not for forex or other trading activities where low latency is crucial.
Author:
Nandor Herpai
UltraFX Team