Yes, there is a special software needed. However; many brokers will be provided the software to you free.
Yes, you can use any custom indicators that are MQL compatible. Failing to download a custom indicator can occur as a result of coding issues on the side of the indicator creator.
VPS stands for Virtual Private Server, and is a very useful tool for traders that use robots/algorithms to trade on the market. These robots often run automatically and independently from the trader, thus are able to explore trading opportunities that manual traders may not be able to.
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