Low Latency Your Forex Trading Edge

Latency is defined as the delay in the time it takes for data to travel from point A to point B. In the case of Forex trading, this equates to the distance between your broker and their respective liquidity
sources.

Latency tends to be one of the most overlooked aspects of Forex trading. From a trader’s perspective the focus has always been on the front end trading software. However, reductions in latency should be one of the
most important considerations in selecting a Forex broker. It is essential that
an STP broker that connects to various liquidity sources lessen the time that trade
messages takes to reach those sources of liquidity.

The Case for Co-location

As is the case with many businesses, a major key to success is “location, location, location”. Numerous studies have shown that the most effective way to limit latency is to make sure the physical location of the
broker’s servers are in close physical proximity to the data source. DivisaFX
accomplishes this by locating their servers within the same facility where
Currenex hosts their servers. This means
that trade messages travel the shortest distance possible and offer clients
precious milliseconds advantage over other brokers.

Many algorithmic and high frequency traders take advantage of the improved execution times by hosting their trading system in a collocation with their broker. Through a partnership with TradeSpotFX, traders
can now use the VPS (Virtual Private Server) service to reduce latency and
maximize the effectiveness of their expert advisor or other automated trading
system they might use.

Another benefit of server collocation is security. Financial institutions are required by law to adhere to the strictest levels of security and data integrity. They must also maintain server uptime of 99.99% so numerous
backups are implemented to insure uninterrupted trading for clients of
DivisaFX.

additional info at backthegreeback.com