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I want to send emails with my Node server. These are no-reply type emails, simply as reminders. The server will not need to handle incoming email. I know that there are services out there like Postmark, Mailchimp, etc. that will send emails for me, but I really do not want to pay for a service.

Using Nodemailer I have to specify a SMTP server. I can piggy back off of GMail or something but that's not desirable because the mail will not be coming from my domain (correct?).

But there is also node-sendmail which will send email without an SMTP server. Can someone describe the implications of sending email without an SMTP server? Dropped connections? No indication if message is undeliverable?

What are the implications of running my own SMTP server? Does it open up additional security holes? Can you recommend an open source SMTP server that requires minimal setup and maintenance?

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Have a look at Haraka. It's an easy to use SMTP server that should do exactly what you're looking for. It's currently in use by Craigslist, so you know it's solid.

There's a section in the docs on how to set it up for sending mail - very last section 6.1.