Hardly a day has passed during the last few months whereby institutional firms and large software conglomerates haven’t focused on increasing the performance of trading systems in the quest to reduce latency and provide extremely fast connections to reduce latency and provide the best environment for clients.
As far as the individual trader is concerned, these large scale infrastructure projects may appear to be aimed at a different market altogether.
Today, FX broker MB Trading partnered with Burst.net in order to offer a new VPS hosting solution.
The online trading industry began discussing the use of points of presence (PoPs) about 7 years ago as a means of increasing the speed of connectivity between trading venues and market participants, mainly, as explained at the iFXEXPO this year in Cyprus, as a means of thwarting denial of service (DOS) attacks on broker websites.
During the discussion panel on liquidity, the conversation among panel members moved to the increase in use of PoPs, which dates back to 2005/6 when DOS attacks began. Most were attacking the primary websites of those brokers but at the time they didn’t give thought to the infrastructure. Most went down and trading stopped for minutes, or sometimes hours. That was the first time PoPs were discussed. The second purpose is for download purposes.
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The general concensus was that if a broker has a desktop platform handling a lot of traffic a pop will stabilize the speed and download performance of this. VMWare type virtual desktop solutions are a good option. This increases communication speed between datacenters as they are virtual and can be moved.
Such provisioning often requires a very large commercial enterprise and therefore could work out prohibitive in terms of cost for retail brokers wishing to provide a low latency solution for the end user.
Burst.net has created a node for MB Trading clients that should alleviate denial of service attacks on other vendors from interfering with your trading, and the latency rates between the VPS servers and our trade servers is extremely beneficial for traders. Their pricing is extremely competitive, and MB Trading will continue to reimburse customers who meet minimal volume requirements for their monthly fees.
Three monthly packages are available, although custom packages can also be created if needed.
Aimed at the MetaTrader 4 user, the first package provides 1GB of memory with a 1500mhz CPU and network level DOS protection.
Over and above that, users can opt for what the firm designates Tier-1 Black Box Hosting, which ups the service to a 150GB RAID array, 2.5GB of memory and 2500MHZ of CPU performance, or Tier-2 Black Box Hosting, providing 4000MHZ CPU capacity, 250GB Raid array, and 4000GB of bandwith per month.