Hosting refers to the location of a broker’s technology stack. This is one of the most crucial elements of a brokerage that helps prevent the company from losing money due to being unable to mitigate latency risks.
Brokers or exchanges are traditionally very vulnerable to latency arbitrage due to the speed with which financial markets move.
The traditional datacenter locations for forex brokers are all centered at Equinix facilities around the globe.
What Are the World’s Foremost Data Centers?
Since most forex infrastructure is located at a couple of locations globally, it is wise for the broker to co-locate its infrastructure.
The industry’s hotspots are London’s LD4 and LD5, New York NY4 and NY5, Tokyo’s TY3 and Hong Kong’s HK1.
Hosting services can be handled internally directly with the datacenter or by using one of the available hosting solutions providers servicing the industry.
The world’s most advanced data centers offer specialized products that support evolving equipment standards and technology requirements.
This is essential for brokers or exchanges, many of which require a blend of physical security and power usage with turnkey relocation services and support globally.
In addition to overall speed, such connections are also very helpful in minimizing security threats.
Many companies even outside the finance industry prefer to rely on these types of advances hosting services.
The advent of cloud hosting has also led to efficiency improvements, especially for execution and operations. This technology also gives banks a greater opportunity to drive out complexity.
Hosting through the cloud also helps develop and launch new and bundled products and services, either on a stand-alone basis or in partnership.