Forex Data API: Expectations Vs. Reality

Introduction

Foreign exchange market is huge in terms of volume and popularity. Currencies are the medium of transactions in the international market and many businesses need currency updates to make trading and business transactions.

Forex Data API has revolutionized this sector by bringing a great deal of ease in accessing market data. Keep reading to analyze the truth about forex data API through a discussion on the features users usually expect. Let us begin by understanding the meaning of forex data API.

What is Forex Data API

Forex Data API is an application programming interface that converts currency rates and provides access to real-time and historical forex market data. It helps in conducting thorough market research.

Similarly, when it comes to integrating a currency exchange rate facility into your websites or trading apps, forex data API is an effective interface to retrieve currency prices.

Benefits of Using Forex Data API

Let us quickly glance at the significant benefits of using forex data API for various purposes:

• Access to Real-time and Historical Market Data

Exchange rate APIs provide instant access to real-time and historical forex market data across wide-ranging currency pairs. You don’t need to obtain market data from various sources and aggregate it to get an accurate and reliable price feed.

• Charting and Analytics Solution for Market Analysis

Quantitative analyzers and retail traders can leverage forex charts and other analytics solutions for backtesting, forward-testing, and various market analysis methods. It helps in determining a better trading strategy and making informed trading decisions.

• Data Retrieval Features for Trading Solutions

Fintech companies and developers can build algorithmic or automated trading platforms and add data retrieval features using forex data API as a reference feed. (Some data vendors provide trading API, and some offer it for a reference feed).

Users’ Expectations and Reality

Users expect forex data API to serve as the gateway to successful market analysis and trading verdicts. However, do all market data providers fulfill these requirements? Let us analyze some significant factors:

• Aggregated Data Updated in Real-Time

Forex market data users expect accurate and reliable price feeds to understand price trends and time their trades in the live forex trading scenario. Inexperienced and poor data providers may transmit slate data as their information is not updated. Similarly, data providers with their own trading platforms may provide biased price feed.

• Retrieving Real-Time Currency Prices

App developers and fintech companies integrate forex data API into their trading solutions to help users retrieve real-time and historical data. However, the accuracy and trustworthiness of exchange rates matter a lot. If you subscribe to a poor data vendor, the inaccuracy of exchange rates may affect your business decisions leading to losses.

• Obtaining Historical Forex Data for Analysis

Users expect easy access to historical forex data to conduct a thorough analysis. However, if your data provider doesn’t provide forex rates up to tick level or charges relatively higher charges, you may need to spend more to obtain historical data for analysis.

• Time-Specific Currency Rates

Analyzers study the price movements of currency pairs for a particular period. You can acquire this information through time frame queries. However, if your data vendor doesn’t offer this information, it may be hard to analyze price movement patterns in the past.

• Switching Source Currency

Users expect currency exchange rates for different currency pairs. Exchange rates for varied currency pairs save their time and place trades at the right time or place import orders when a particular currency declines in value. However, some API owners provide currency exchange rates based on their default source or base currency.

• Rates of Particular Currencies

Users may require rates of a particular currency against several other currencies for analysis and trading purposes. However, many data vendors don’t support this feature. Users may expect a proper learning resource to calculate cross-currency rates.

Importance of Choosing a Reliable Data Provider

It is essential to choose the best forex data API provider or market data vendor to fulfill your expectations. Relying on cheap and slag forex data APIs may be disastrous, as accurate and trustworthy market data is essential to conduct in-depth market analysis and make well-informed trading decisions. Understanding the offering and its features is vital while making the best of the reliable forex price feed.