Q: How to create a new file on remote host browser on phpstorm I struggling to create a new file on the "Phpstorm" remote host browser. 
Currently i able to create only a new directory. 
Thank you. 

A: You cannot do that: PhpStorm does not support "edit remote only" type of editing files -- you have to create and edit file locally and then upload to remote.
Think about this: if you will be able to create a file directly on remote server ... but unable to edit it because IDE can work (edit) with local files only .. then what is the point of such empty remote file?
Regarding folders: well ... they are just folders (they have no content (in a sense of file content)) -- you can freely move files between folders.

UPDATE (2017/01/16):
As of PhpStorm v9 it's now possible to do Remote Edit (file will be downloaded in temp location and will not be stored in actual local project).
Read more in official blog post: https://blog.jetbrains.com/phpstorm/2015/04/remote-edit-in-phpstorm-9-eap/
Some possible disadvantages of such editing: https://stackoverflow.com/a/36850634/783119
