We are not blocking or speed bumping the connection to any brokerage firms or execution venues. Our ports are available to connect to wherever you want. If you are unable to connect, please contact the brokerage firm to whitelist your UltraFX VPS or dedicated server IP address. We provide each VPS or dedicated server with an individual, dedicated IP address and therefore brokerage firms can easily whitelist only your IP address independently from all other UltraFX VPS clients.
However your whitelist request may will be declined by the brokerage firms and in some instances the brokerage firm will recommend a so-called “preferred” VPS provider. In such cases you should consider the followings:
- In the retail forex markets brokerage firms most of the cases act not only as agents who transmit your orders to an execution venue but in addition act alone as a venue of execution. This means that they are standing not on your side but opposite to you. So it is not the best idea to use a VPS provider recommended by a party which is not neccesarily acting in your best interest.
- Scientific studies say that: financial markets have two important functions for asset pricing: liquidity and price discovery for incorporating information in prices (Maureen O’Hara. “Presidential address: Liquidity and price discovery” Journal of Finance 58.4 (2003).
Lower latency has a positive effect on price and liquidity discovery and not least on transparency.
Most UltraFX VPS products are very fast and that why not welcomed by some brokerage firms, probably because they don’t want to share the interest of better liquidity and price discovery and transparency with you, or maybe there is not even real liquidity by them what could be discover. Therefore, if a brokerage firm does not allow you access to their trading facility just because you use UltraFX VPS virtual or a dedicated server then it is better to avoid those brokerage firm. The likelihood is you will not be happy how the brokerage firm will execute your orders or the brokerage firm will not be happy for your trading flow.
The UltraFX VPS service provides low latency hardware and networks to benefit our clients, but on the other hand we do not provide any advice about trading strategies. In other word UltraFX VPS service is a simple hardware, hosting and network service and we do not advise or encourage clients to use any strategies which may be liked or disliked by the brokerage firms or the execution venues. Put simply, we do not involve ourselves in any battles between trading clients and their brokerage firms regarding execution and service quality. Any such issues must be settled between the brokerage firms and their clients to find a common ground, agreeable to both parties.