Remote vs Local (stdio) MCP Servers — Which to Use
Local MCP servers run on your machine via npx/uvx; remote ones run in the cloud over HTTP. Each wins in different cases — here is the decision.
MCP servers come in two transports. Local (stdio) servers are launched as a process on your machine. Remote (HTTP) servers run in the cloud and you connect over a URL. The right choice depends on data location, auth, and whether a team shares it.
Use a local (stdio) server when
- The tool touches local resources — your filesystem, a local Postgres, a dev environment.
- You want zero hosting and no network round-trip.
- The server is a simple
npx/uvxpackage.
Trade-off: it only exists on your machine, needs the runtime installed, and cannot be shared as-is.
Use a remote (HTTP) server when
- The tool is a hosted API (a SaaS, an internal service).
- You need OAuth or per-user tokens — remote servers handle auth cleanly.
- A team should share one endpoint, or a client like ChatGPT / claude.ai needs it (those only accept remote MCPs).
Trade-off: someone has to host it, and there is network latency.
The quick rule
Local for anything on your machine; remote for anything hosted, shared, or OAuth-gated. If you want a remote endpoint without hosting servers yourself, the Unyly Gateway proxies local-style servers over one authenticated HTTP endpoint — usable from ChatGPT and claude.ai too.