Learn how a VPN can improve access to forex trading platforms worldwide in this post.
Regulations in financial investment markets were designed to protect investors against day-to-day internet vices and exploitation from service providers.
However, every rule has trade-offs. While regulatory bodies never intended the negative consequences, some laws have limited access to brokerages and other financial services in certain jurisdictions.
For instance, certain international brokers that do not fall under the US financial authorities are strictly prohibited from operating in the region.
The aim of this article, however, isn’t to dwell on these limitations but to discuss Virtual Private Networks (VPN) as a possible way investors are bypassing this to access global markets.
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Why Access to Forex Trading Platforms Can Be Limited
Although the forex trading market has been sold for years as a sector with global appeal, and one that is open to investors all around the world, not every trader has equal access to platforms and brokers.
Geographical restrictions, government censorship, and connectivity issues are just three barriers – there are many more. For instance, some brokers, like Pepperstone and InstaForex, might restrict users from the United States due to licensing and regulatory issues.
Another noteworthy example is the US history of blocking financial investments with countries like Iran, North Korea, and Cuba. These barriers are not new, but if you are (new to the market, that is), they could keep you from fully participating and making the most of market opportunities. This is where VPNs come in.
What are VPNs and How Do They Work in Trading?
VPN is a service that establishes a secure, encrypted connection between your device and the internet by routing it through a VPN server.
In essence, this masks your IP address and encrypts every data you send and receive online. For foreign investors, a VPN reroutes your traffic through servers in different countries, making it appear as though you are browsing from another location.
So if, for example, you’re restricted from using certain instruments due to a geopolitical barrier, a VPN can help you wade through this limitation, opening opportunities to explore trading platforms worldwide.
Added Benefits of VPN for Financial Market Investors
Aside from bypassing geographical restrictions, there are other advantages to using this tool in your day-to-day transactions.
Improving Security and Privacy
Oftentimes, when traders place orders, access trading platforms, and perform other transactions, the data is left vulnerable to the outside world. The nature and sensitivity of these data and financial information make them a target for cyberattacks.
One of the primary ways VPNs help combat this is by using enhanced encryption protocols, like AES-256, which changes the information into an unreadable and incomprehensible format. This way, hackers cannot intercept or steal trading information.
This could come in handy when investors have to use public Wi-Fi, like in hotels, airports, and cafes, since these networks are infinitely more vulnerable. With this extra layer of protection, traders can access as many assets and markets as they want without exposure to additional risks.
Ensuring Reliable and Stable Connections
Speed and stability are priorities when it comes to trading financial investment markets. Some opportunities are only open for a matter of minutes, which means there is no room for lagging or delay.
Most traditional internet service providers sometimes throttle, or slow down trading-related activities, which can lead to loss of once-in-a-lifetime opportunities. The advantage of VPNs in such situations is that VPNs can help ensure faster speed and execution.
By routing traffic through optimized servers, VPNs can improve connection stability on all transactions.
How To Choose the Right VPN for Forex Trading
The best VPNs offer some non-negotiables, like better speed and low latency, wide server locations, strong encryption and no-log policies, and reliability.
While some free VPNs do offer these perks, paid ones are usually faster, safer, and more consistent. But given the nature of trading activities, a paid VPN service is often recommended. There is a lot at stake with asset investments, and it wouldn’t hurt to take extra precautions.
Average VPN prices may vary depending on the provider’s tier and plan length, but you can find prices ranging from about $1.25 to $13+ per month. Some of the most reputable options out there are NordVPN, Proton VPN, Surfshark, and ExpressVPN.
Trading Without Borders
The forex market is borderless, and you should be allowed to access opportunities to their fullest. If you encounter any challenges in this regard, you can always look to a reliable VPN to get things done.
The options we’ve listed above are popular among users, but you are not limited to these. Do your research and find out what most investors are using in their day-to-day transactions, then sign up for the services that make the most sense for your trading journey.
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About the Author:
Mikkelsen Holm is an M.Sc. Cybersecurity graduate with over six years of experience in writing cybersecurity news, reviews, and tutorials. He is passionate about helping individuals and organizations protect their digital assets, and is a regular contributor to various cybersecurity publications. He is an advocate for the adoption of best practices in the field of cybersecurity and has a deep understanding of the industry.
