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Even if the messages are end to end encrypted I wouldn't trust a third party with that data (unless it was a company that does it for a living.)
I'd probably recommend running your own instance, I imagine for that few users it would be pretty cheap. Though maintenance is probably the biggest issue there.
Or just use a third party Matrix server but send client info over email using GPG keys. That would cost you nothing.
Do you mean self-hosted, like from our own computer?
No, he means from a server. Either a VPS, a physical server you buy, or an old laptop in the corner that you keep always running (idk if that's enough for matrix, I want to host my own for about the same number of people but have yet to take the plunge. Also want to host myself a nextcloud instance, a jellyfin server, and motioneyeos. One day...)
I think this helps me clarify what I am asking: I want to set up an instance of Matrix/Element that is private (defederated?).
To do so, it has to live somewhere. And I gather that can be a public server like @domi linked to, or on a VPS (or physical server, but I don't want to go there).
Public server is what I originally had in mind: are there any that are better options than others in relation to security/privacy?
If I instead rent space on a VPS, (a) what's a decent one to consider and (b) do I then need to install something in addition to Element like Synapse, which someone else mentioned?
Oh! I misunderstood lol. Honestly, I have some of these same questions, so I wish I could help here but I cannot, sorry.