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Compared to general server demand, the algorithmic trading community is a small
segment with very specific needs.
Commercially available servers are designed to meet general requirements, where handling large volumes of computational tasks in an energy- and space-efficient way is the priority. These servers typically use CPUs with a high number of cores but low clock speeds (usually below 3GHz). While this setup can host hundreds of VPS
instances at a relatively low cost, it comes at the expense of latency.
Unfortunately, these cost savings benefit the hosting provider—not the Forex
trader—who ends up paying the price in the form of higher execution costs due to
slower VPS. The lesson, as always: there’s no such thing as a free lunch.
Back in 2011, we decided not to compromise. We set out to build server designs
capable of running CPUs with clock speeds well above 3GHz—often over 4GHz—and ensured stable operation at maximum processor speed.
Operating at higher frequencies generates more heat, and heat is one of the greatest enemies of electronic components. To remove that heat and keep components cool, we went to the extreme.
The video below shows our early server designs on a test bench. The powerful suction force ensures cool, low-latency operation at every level:
High-frequency CPUs typically have fewer cores, which means they can handle less
load—fewer VPS instances per server. Providing VPS service to algorithmic traders
using 4GHz CPUs requires roughly 10 times more servers compared to using 3GHz
CPUs. Higher speed means higher costs.
It’s no surprise that most general-purpose VPS services (not tailored for Forex)
operate between 2–3GHz, and almost none reach or go above 4GHz.
UltraFX Forex VPS is unique—custom-designed for Forex trading and equipped with
high clock frequency CPUs to deliver the performance traders need.
Nandor Herpai
UltraFX Team