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Co-location vs a trading proxy, what is the difference?

  • Updated
  • By Traders Proxy
  • 5 min read

The short answer

Co-location means putting your own equipment in the same building as your broker’s servers. Traders Proxy is not co-location, your platform stays on your computer, and our server connects in your broker’s city. If every fraction of a millisecond decides your trades, use co-location.

Co-location puts your own equipment in the same building, so distance adds almost nothing.

Co-location means paying a facility for space for your own equipment. In trading, that usually means the building that houses the servers you trade with, such as an exchange’s. The facility supplies space, power and cooling, and you bring and run the server.

The benefit is distance. Your equipment sits in the same building as the servers you trade with, so distance adds almost nothing to each wait.

The limits are rules and effort. Each facility has its own rules about who may connect to whom, and you run the server yourself. So it suits people who can run their own server.

A trading proxy leaves your platform on your computer and changes where it connects.

With Traders Proxy, you pick your broker’s city in your dashboard and switch it there. So you match your broker’s city without moving any equipment.

Our server in your broker’s city opens a separate local connection to your broker. If data drops on that link, our server recovers it inside that city.

Your order waits on that short local link instead of the whole way. Trading ports go first when a server is busy, and broker addresses stay warm in memory.

Data lost between you and our server is recovered between those two. If our server in your broker’s city is unreachable, your platform shows an error. Your dashboard asks before using another city.

Only the trading app you set up uses Traders Proxy, so your plan’s data goes on trading. Everything else stays on your normal internet.

Traders Proxy is not co-location, so there is no server for you to run.

With co-location, you bring a server and pay a facility for its space. Traders Proxy is a connection service, with no space in a facility and no direct cable of your own. You paste four values into your platform’s proxy setting and install nothing.

Our own software runs on our servers in each city we list. The software that connects you to your broker is ours. No one else’s proxy sits between you and your broker.

Distance sets the minimum wait, and each lost piece of data adds more.

A backtest runs on your own machine, so no internet link can lose a piece of data during a news release. In live trading, one lost piece holds up every price update and order behind it. Everything waits while your computer sends it again across the world.

Your ping, the time data takes there and back, cannot be shorter than distance allows. When a piece of data is lost, your platform waits about that long. Then it sends the piece again.

If the second copy is lost too, the wait doubles. Meanwhile price updates wait in line and your next order is held up.

The maths in briefPhysics, not our measurement
  1. 01

    Your broker’s distance sets a minimum time for every order

    Light in a cable travels about 200 km every millisecond. Your order goes there and back, so every 1,000 km adds at least 10 ms.

    What it means for youPhysical distance dictates your latency floor. Fibre travel times remain constant regardless of routing tools.

    minimum there and back (ms) = distance (km) ÷ 100

  2. 02

    One lost piece of data makes everything wait

    When a packet drops, your platform pauses while requesting a retransmission across the full distance. Consecutive drops double this waiting penalty. Incoming price ticks stall during the exact seconds volatility peaks.

    wait 1× → 2× → 4× → 8×

  3. 03

    Our server in your broker’s city recovers lost data locally

    Our server in your broker’s city opens the final connection to your broker. On a quiet connection, a repeat loss doesn’t double the wait.

    What it means for youWhen a piece is lost near your broker, our server recovers lost data inside that city instead of from your computer.

    distance set by physics · recovery in your broker’s city is ours

Try your own distance

Singapore to London is about 10,850 km in a straight line, so at least 108 ms there and back. No order can reach your broker and hear back in less. Real routes are longer.

We don’t promise lower ping because distance sets the minimum. Local recovery in your broker’s city covers only the connection between our server and your broker. The repeat-loss fix covers the first few tries on a quiet connection, after the first repeat try.

Physics and a published standard, not our measurement. The further you are from your broker, the longer each wait.

Co-location shortens the distance, and with it the time data needs there and back. A proxy leaves the connection from you to our server as it is. Instead, our server opens a local connection in your broker’s city and recovers lost data there.

You cannot paste four values into your platform while your chart is already frozen in a live trade. Set it up today while the market is calm. Then time it on your own screen during the next release.

With Traders Proxy, your data still travels the whole distance to your broker. We don’t promise lower ping. Distance sets the minimum. If your broker prohibits proxies, don’t use one.

Co-location shortens the distance, while a proxy recovers lost data in your broker’s city.

The table sets out what each one changes, who runs it and what it costs, so you can see which fits you.

Co-location and Traders Proxy compared
FeatureCo-locationTraders Proxy
Where the server sitsIn the premises that house the servers you trade withOurs, in the broker’s city you pick in your dashboard
Who runs the serverYou doWe do
Where your platform runsOn the server you place thereOn your own computer
Runs with your computer offYesNo
What it changesThe distance itselfRecovers lost data locally inside your broker’s city
What you paySet by the facility, plus the server you bringA plan from $9 a month
What it means for youThe shortest distance there is, if you can run a server thereYour own screen stays as it is, and lost data near your broker is recovered inside that city

Terms and prices differ by facility, so ask the facility. Our plans are on the pricing page.

How you trade decides which one you need.

Verdict. Short answer

If every fraction of a millisecond decides your trades, co-location is the right tool. Traders Proxy is not that. If you trade by hand from your own screen, a proxy is the smaller step, with no server for you to run.

Traders Proxy does not keep a platform running while your computer is off. If an expert advisor must run while your computer is off, a trading VPS is the right tool.

Frequently asked questions

Is Traders Proxy a form of co-location?

No. Traders Proxy is a connection service, with no space in a facility and no direct cable of your own. Your broker sees one steady address, our server’s, shared with other Traders Proxy customers, until you switch city or we replace a server.

Does a proxy do what co-location does?

No. Co-location shortens the distance itself, and a proxy does not. Instead, our server in your broker’s city connects locally to your broker and recovers lost data inside that city.

Does my broker offer co-location?

Ask your broker. Whether it offers co-location is its decision, and we do not list which brokers do.

What is a cross-connect?

A direct cable between two customers’ cabinets, or between a cabinet and a network provider, inside one co-location facility. Rules and fees vary by facility. A Traders Proxy plan includes none.

Can I use co-location and a proxy together?

There is little reason to. A co-located server is already in the same building as the servers you trade with. A proxy would only put another server in between.

Does a proxy change what my broker allows?

No. Check your broker’s terms before you start. If your broker prohibits proxies, don’t use one.

Field reports · Verified forum threads

Real forum reports, what our system does, and where it stops.

Every quote below links to the forum thread or vendor guide where it appeared. Underneath each quote, see which parts of our system work together on it and where our server stops.

Windows VPS & RoutingWhen not to use a proxy

MetaTrader's own proxy setting fails on some builds or setups

“MT5 doesn't support SOCKS5 natively. This bridge sits between MT5 and V2rayN”

Why a proxy can backfire here. Use SOCKS5 or HTTP, whichever your platform offers.

  • Built-in SOCKS5 loginBoundary
  • Built-in HTTP proxy loginBoundary

Where it stops. Use the platform's own Test button. If it fails, the fault is in the platform's proxy support. Not SOCKS4. IPv4 only.

cTraderNot a proxy problem

High server delay, slow price feed or slow fills in cTrader

“Inquiries related to the price feed and execution should be addressed to the brokers since they are in control of the entire chain.”

Why a proxy does not change this. Traders Proxy doesn't change your broker's prices, fills or spreads, and it doesn't promise lower ping.

Where it stops. We do not change cTrader server delay, tick frequency or fills. In cTrader, our server connects onward to Spotware’s cloud node.

MetaTrader 4 & 5Not a proxy problem

Installer 'Proxy Server' popup and MQL5.community 403 on a VPS or datacentre address

“Zomro provider with subnets has been blocked more than 4 years ago”

Why a proxy does not change this. Traders Proxy carries your platform's trade-server connection. We don't promise it fixes installer downloads or MQL5.community sign-in.

  • Only the app you set up is routedBoundary

Where it stops. The platform proxy setting applies after MetaTrader is installed. If the installer download is blocked, download the installer another way first.

MetaTrader 4 & 5Not a proxy problem

'Trade context is busy' (error 146), including on manual trades

“146 ERR_TRADE_CONTEXT_BUSY Trade context is busy”

Why a proxy does not change this. Traders Proxy doesn't change how MetaTrader handles its trade requests.

Where it stops. Trade context is busy is MetaTrader’s own local lock when two scripts place orders at once. A proxy does not change it.

Sources

Bring your trading route closer to home.

Get set up in under 5 minutes with four values and nothing to install. Connect through our server in your broker’s city, then time your platform with and without us.

From $9 a month · Stop renewal any time in your dashboard · First payment refunded if your platform can’t connect through us