Best VPS for Matrix in 2026

Matrix is a decentralized, encrypted chat protocol. Run your own homeserver and you control your communications — no Big Tech middleman.

What is Matrix?

Matrix is to chat what email is to messaging:

• Federated — Your server talks to others (like email)
• Encrypted — End-to-end encryption by default
• Open protocol — Not controlled by one company
• Bridge support — Connect to Signal, Discord, Slack, WhatsApp

Think of it as self-hosted Slack/Discord that can talk to other Matrix servers worldwide.

Why Self-Host Matrix?

Factor	matrix.org (free)	Self-Hosted
Privacy	They see metadata	Full control
Customization	Limited	Unlimited
Storage	Limited	Your VPS
Performance	Shared	Dedicated
Federation	✅	✅
Username	@you:matrix.org	@you:yourdomain.com

Self-hosting gives you @username:yourdomain.com addresses and complete data sovereignty.

VPS Requirements

Synapse (Reference Implementation)

Synapse is Python-based and memory-hungry:

Minimum:

• 2 vCPU
• 2GB RAM (small community)
• 20GB storage (grows with media)

Recommended:

• 2+ vCPU
• 4GB RAM (50-100 users)
• 50GB+ NVMe

Large Community:

• 4+ vCPU
• 8GB+ RAM
• 100GB+ storage
• Consider Dendrite instead

Dendrite (Lightweight Alternative)

Dendrite is Go-based, much lighter:

• 1 vCPU
• 1GB RAM
• 10GB storage

Trade-off: Fewer features, less mature.

Best VPS for Matrix

1. Hetzner CX21 (Best Value)

€5.39/mo | 2 vCPU, 4GB RAM, 40GB NVMe

4GB RAM handles Synapse well. 20TB bandwidth is plenty for media.

Performance: Smooth for 50-100 active users

2. Hostinger KVM2 (Best Budget)

$5.99/mo | 2 vCPU, 8GB RAM, 100GB NVMe

8GB RAM is luxurious for Matrix. Good for growing communities.

3. Vultr High Frequency (Best Performance)

$24/mo | 2 vCPU, 4GB RAM, 128GB NVMe

3GHz+ CPUs mean faster room syncs. Worth it for large rooms.

4. Contabo VPS S (Most Storage)

€5.99/mo | 4 vCPU, 8GB RAM, 200GB

If media storage is priority, Contabo's specs can't be beat.

Complete Setup Guide

Step 1: Create Your VPS

Using Hetzner CX21:

1. Sign up at Hetzner Cloud
2. Create server → Ubuntu 22.04 → CX21
3. Add SSH key
4. Create server, note IP

Step 2: DNS Setup

A     matrix.yourdomain.com      → your-server-ip
A     element.yourdomain.com     → your-server-ip
SRV   _matrix._tcp.yourdomain.com → 10 0 443 matrix.yourdomain.com

The SRV record enables federation with your root domain.

Step 3: Initial Server Setup

ssh root@your-server-ip

# Update
apt update && apt upgrade -y

# Install Docker
curl -fsSL https://get.docker.com | sh

# Create matrix user
adduser matrix
usermod -aG docker matrix

Step 4: Deploy with Docker Compose

su - matrix
mkdir matrix && cd matrix

Create docker-compose.yml:

version: '3.8'

services:
  synapse:
    image: matrixdotorg/synapse:latest
    container_name: synapse
    restart: unless-stopped
    environment:
      - SYNAPSE_SERVER_NAME=yourdomain.com
      - SYNAPSE_REPORT_STATS=no
    volumes:
      - ./synapse-data:/data
    ports:
      - 8008:8008
    depends_on:
      - postgres

  postgres:
    image: postgres:15-alpine
    container_name: synapse-postgres
    restart: unless-stopped
    environment:
      POSTGRES_USER: synapse
      POSTGRES_PASSWORD: your-secure-password
      POSTGRES_DB: synapse
      POSTGRES_INITDB_ARGS: --encoding=UTF8 --lc-collate=C --lc-ctype=C
    volumes:
      - ./postgres-data:/var/lib/postgresql/data

  caddy:
    image: caddy:alpine
    container_name: caddy
    restart: unless-stopped
    ports:
      - 80:80
      - 443:443
    volumes:
      - ./Caddyfile:/etc/caddy/Caddyfile
      - caddy_data:/data
      - caddy_config:/config

  element:
    image: vectorim/element-web:latest
    container_name: element
    restart: unless-stopped
    volumes:
      - ./element-config.json:/app/config.json

volumes:
  caddy_data:
  caddy_config:

Step 5: Configure Caddy

Create Caddyfile:

matrix.yourdomain.com {
    reverse_proxy synapse:8008
}

element.yourdomain.com {
    reverse_proxy element:80
}

yourdomain.com {
    header /.well-known/matrix/* Content-Type application/json
    respond /.well-known/matrix/server `{"m.server": "matrix.yourdomain.com:443"}`
    respond /.well-known/matrix/client `{"m.homeserver": {"base_url": "https://matrix.yourdomain.com"}}`
}

Step 6: Generate Synapse Config

docker run -it --rm \
  -v ./synapse-data:/data \
  -e SYNAPSE_SERVER_NAME=yourdomain.com \
  -e SYNAPSE_REPORT_STATS=no \
  matrixdotorg/synapse:latest generate

Edit synapse-data/homeserver.yaml:

database:
  name: psycopg2
  args:
    user: synapse
    password: your-secure-password
    database: synapse
    host: postgres
    cp_min: 5
    cp_max: 10

enable_registration: false

Step 7: Configure Element

Create element-config.json:

{
  "default_server_config": {
    "m.homeserver": {
      "base_url": "https://matrix.yourdomain.com",
      "server_name": "yourdomain.com"
    }
  },
  "brand": "Element",
  "default_theme": "dark"
}

Step 8: Launch

docker compose up -d

Wait a minute, then access:

• Element: https://element.yourdomain.com
• Synapse API: https://matrix.yourdomain.com

Step 9: Create Admin User

docker exec -it synapse register_new_matrix_user \
  -u admin \
  -p your-password \
  -a \
  -c /data/homeserver.yaml \
  http://localhost:8008

Log in with @admin:yourdomain.com

Enable Federation

Federation lets your server talk to matrix.org and others.

Test Federation

curl https://federationtester.matrix.org/api/report?server_name=yourdomain.com

Should show green checkmarks.

Common Federation Issues

1. Wrong SRV record — Use proper format
2. SSL issues — Ensure valid certificate
3. Firewall — Port 443 must be open

Performance Tuning

Enable Redis (for large servers)

Add to compose:

redis:
  image: redis:alpine
  restart: unless-stopped

Update homeserver.yaml:

redis:
  enabled: true
  host: redis
  port: 6379

Database Tuning

For PostgreSQL:

ALTER SYSTEM SET shared_buffers = '1GB';
ALTER SYSTEM SET effective_cache_size = '3GB';
ALTER SYSTEM SET work_mem = '16MB';

Enable Caching

In homeserver.yaml:

caches:
  global_factor: 1.0
  cache_entry_ttl: 30m

Synapse Workers (Advanced)

For large deployments, split Synapse into workers:

• Federation sender
• Media repository
• Push notifications

See Matrix docs for worker configuration.

Bridges (Connect Other Platforms)

Discord Bridge

docker run -d \
  --name mautrix-discord \
  -v ./discord-bridge:/data \
  dock.mau.dev/mautrix/discord

Signal Bridge

docker run -d \
  --name mautrix-signal \
  -v ./signal-bridge:/data \
  dock.mau.dev/mautrix/signal

WhatsApp Bridge

docker run -d \
  --name mautrix-whatsapp \
  -v ./whatsapp-bridge:/data \
  dock.mau.dev/mautrix/whatsapp

Backup Strategy

Database Backup

#!/bin/bash
# backup.sh
docker exec synapse-postgres pg_dump -U synapse synapse > backup.sql
rclone copy backup.sql remote:matrix-backup/

Schedule with cron:

0 3 * * * /home/matrix/backup.sh

Media Backup

tar czf media-backup.tar.gz synapse-data/media_store/
rclone copy media-backup.tar.gz remote:matrix-backup/

Security Hardening

Disable Registration

In homeserver.yaml:

enable_registration: false

Enable Rate Limiting

rc_message:
  per_second: 0.5
  burst_count: 10

rc_registration:
  per_second: 0.1
  burst_count: 3

Regular Updates

docker compose pull
docker compose up -d

Resource Usage

Typical usage on a 100-user server:

Component	RAM	CPU
Synapse	1-2GB	0.5-1 core
PostgreSQL	500MB	0.2 core
Element	50MB	minimal
Caddy	20MB	minimal
Total	~2.5GB	~1.5 cores

4GB RAM VPS handles this comfortably.

FAQ

Synapse vs Dendrite?

Synapse is mature, full-featured. Dendrite is lightweight but missing features. Start with Synapse unless you're resource-constrained.

How much storage do I need?

Depends on media sharing. Start with 40GB, monitor usage. Media is the biggest consumer.

Can I use my own domain for usernames?

Yes! That's the point. @you:yourdomain.com is yours forever.

Is Matrix truly private?

With E2EE rooms, yes. Metadata (who talks to whom) is visible to server admins.

Can I migrate from matrix.org?

Yes, but it's complex. Easier to start fresh on your server.

Recommended Setup

Use Case	VPS	Monthly Cost
Personal/Small	Hetzner CX21	€5.39
Medium Community	Hostinger KVM2	$5.99
Large Server	Hetzner CX31	€10.49

Start with Hetzner CX21 — €5.39/month for complete communication sovereignty.