The best dedicated servers for a brokerage for a large part depends on the individual needs of the brokerage, and the stage of it’s growth. From start-up brokerages to long established, it is ‘best practice’ to have at least two dedicated servers for a brokerage: one dedicated server is used for MAIN trading operations, and the second dedicated server is used as a BACKUP dedicated server. Many brokerages add to this configuration with a third dedicated server that is used solely for DEMO accounts.
Ideally a brokerage MAIN dedicated server should be located in the same city where the brokerage trades will be taking place. Data latency speeds increase with the distance that the data travels and most brokerages strive to have latency speeds as low as possible Many brokerages require speeds of under 10 ms [ ten milliseconds ] with latency speeds of under 7ms [ seven milliseconds ] being common requirements for brokerages that advertise top-level services.