I moved my VPS from a provider 18 ms from my broker's server to one at about 3 ms. Expected better fills. After two months, the data says almost nothing changed for my style.
Comparison, EURUSD, about 250 trades each period:
- Average entry slippage: −0.08 pips before, −0.07 after.
- Average stop slippage: −0.18 before, −0.17 after.
- Requotes/rejections: zero both times.
Why so little effect? My trades are discretionary, held 2 to 20 minutes, entered by hand or with simple order placement. The time between my decision and the click is already hundreds of milliseconds. Saving 15 ms in the network is a rounding error.
Where lower latency would matter:
- EAs reacting to ticks within milliseconds.
- News trading in the first second.
- Arbitrage-style strategies (which most brokers don't want anyway).
The new VPS costs about €10 more per month. For my style it's not worth it, so I'm moving back. Stability and uptime were the same with both.
Did anyone else measure the difference after a latency upgrade? I suspect many of us pay for speed we don't use.