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What is the difference between a VPS and a Dedicated server

VPS (Virtual Private Server) shares resources on a single physical server (think of it as server slices), while a Dedicated server offers exclusive access to all its resources. VPS is more affordable and suitable for moderate needs, while Dedicated servers provide maximum performance and are ideal for resource-intensive tasks.

Resource Allocation:

VPS: Virtual Private Server (VPS) is a virtualized server created by dividing a physical server into multiple virtual instances. Each VPS gets a dedicated portion of the server's CPU, RAM, and disk space. The resources are shared and load-balanced among multiple instances.
Dedicated Server: In contrast, a Dedicated server is a physical server entirely dedicated to a single user or client. It offers exclusive access to all its resources, ensuring consistent high performance without sharing with others.


VPS: The performance of a VPS is capped by its resource allocation and load-balancing, avoiding contention between instances on the same server. Because a VPS runs in a virtual environment, it is slightly less efficient than a physical server.
Dedicated Server: Dedicated servers provide superior performance since all resources are exclusively available to one user, making them suitable for resource-intensive tasks and high-traffic websites.


VPS: a Virtual Private Server (VPS) is more cost-effective than Dedicated since the physical server's cost is shared among multiple users.
Dedicated Server: Dedicated servers are more expensive due to the exclusive access to resources and higher performance they offer. That said, we do carry excess of hardware at any given time, so reach out and we might be able to build you a custom dedicated server configuration that offers above-VPS performance but within your budget.

Customization and Control:

VPS: users have control over their virtual environments and can install custom software and manage configurations, but there might be some limitations imposed by the underlying virtualization technology. For example, very CPU intensive algos, like those dealing with order flow, Depth of Market (DOM), custom chart types (such as renko), etc., may perform smoother on physical CPU cores offered by a dedicated server.
Dedicated Server: Users have full control and flexibility over the entire server's configuration, allowing for extensive customization and optimization. Also, physical CPU cores offer superior performance compared to virtual.

Scalability and Upgrades:

VPS: highly scalable as resources can be easily upgraded or downgraded to meet changing requirements.
Dedicated Server: once provisioned, Dedicated server blades are fixed. Although billing is prorated, we would have to build you a new server should you decide you need more memory, storage, or a better CPU.
Upgrades: VPS to VPS upgrades preserve data, VPS to dedicated server upgrades do not since the two systems (virtual vs physical) are very different. That said we'll happily keep the VPS running until you've moved your data over.

In summary, VPS is a budget-friendly option suitable for most trading needs while a dedicated server provides maximum performance and is ideal for resource-intensive applications and trading set-ups.

Updated on: 20/07/2023

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