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Really depends how current the VPS servers are, some are not using high end components and have multiple users so you may end up with little to know improvement given the adoption of fiber
Hmm, the fiber element doesn't matter here: for individual users fiber helps to get an higher bandwidth but what matters is the network latency which is correlated to the distance. An Australia users having fiber Internet will still have a 350 ms latency to CQG in Chicago, while a DSL/copper user in Chicago will have 10 ms.
@leo11taxalian: check the webinar I did in January 2017, there are few slide about this.
You can also have an idea of what your slippage would have been with a lower network latency in doing simple maths. Get the list of the orders executed with millisecond precision, check when you sent you own order and when it was filled, and if you know your network latency you can extrapolate where they should have been executed.
Not all VPS are equal! Many use cloud hosting and shared servers. Allot of discount vps will cram to many users on a virtual server.
Also depends what your doing. Manual trading? No need for vps. You would have to route your order from your computer to vps to broker Running robot? Well that makes sense as server banks have UPSs running to keep the robot running if power loss etc. And the bot is placing trade at the server. Not waiting for communication from your computer that's far away.
If you have a robot that scalps then connection is a huge issue. Yes it helps with slippage! Even if the broker is using a bridge to route orders. Every millisecond counts. If your robot does larger swings and not a tick harvester then it probably really doesn't matter to much. Don't short change yourself on a vps if you get one.
For retail there are few really good vps companies. Beeks is what I use for my robots. They have server banks in Chicago and New York with fiber connections. One of the best you can get for retail.
I used to be a News Trader with different VPS (In NY, UK, NZ VPS SERVErs) and the Slippage is about ur Broker. Sometimes u are going to take a lot of Slippage and other times u are going to take only a few.
While some brokers can be faster than others their processing delay is negligible compared to the network latency (not sure for some FX rogue brokers BTW).
If you have a VPS in UK with a broker hosting his market gateways in Australia you'll receive the tick data with a 300 ms delay and your orders will be received with the same 300 ms delay.