|Supported Rates|| |
Over 200 currencies, commodities, and precious metals. Start a free trial to access these rates.
|Total Currency Pairs|| |
|Historical Data Dating Back to|| |
|Proprietary Data|| |
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39 Central Bank exchange rates
We offer one of the largest sets of Central Bank exchange rates including ECB, Bank of Canada, Banco de Mexico, and more.
|Types of Exchange Rates Data|| |
Forex Order Book
|HTTP Method Supported|| |
|Protocol Supported|| |
|Security Mode|| |
JSON, XML, CSV
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|Fully Redundant Servers?|| |
|Dedicated Internet Connection|| |
|SSAE16 standards (Data centers)|| |
|SOC-1 Type II|| |
|SOC-2 Type II|| |
|ISO 27001|| |
Foreign exchange (FX) is a global 24-hour marketplace with over $3 trillion traded each day. That’s larger than the New York Stock Exchange, NASDAQ, and Tokyo Stock Exchange combined!
Despite its size, FX is among the least transparent markets globally. Unlike equity markets, FX is a decentralized or over-the-counter (OTC) market, where different currency rates can be valid at the same time, as long as buyer and seller agree on a price. The fact that there is no central authority, also unlike equity markets, contributes to the opaque nature of the FX marketplace. This highlights why it’s critical to work with rates from a trusted source whose data is a true reflection of the market consensus.
Its size and volatility make it too important and unpredictable for organizations to overlook. Global market movements and fluctuations in currency exchange rates affect job functions across the organization on a daily basis – and in some cases, in real time.
There are many different types of FX data sets to choose from, so how can professionals understand which is best for them? This guide identifies the ideal FX dataset based on job function and business need.
It’s not an easy task to balance multiple local entities, regulatory standards, and exposure to different currencies. As masters of navigating the tumultuous business landscape, accountants, and more broadly finance professionals, use daily average exchange rates to serve their day-to-day functions. These daily average rates are the calculated average of the currency intraday fluctuations and can be conveniently populated inside ERP systems and other financial applications.
Daily average rates are used globally for financial reporting, invoicing, accounting, audit support, and reconciling company’s financial books. In certain circumstances, other period averages may also be required, including weekly, monthly, quarterly, and yearly averages, though all are available when subscribing to a daily average feed. In some cases, Central Bank exchange rates will also be required in place of market rates, to comply with local regulations when companies are operating within certain territories. Not many providers offer both market rates AND Central Bank exchange rates. And when they do, it is too often the work of rates aggregators that have very little knowledge of or control over the actual data they’re delivering. Finance professionals know this far too well and choose OANDA as their trusted FX data provider, to access accurate market rates and the largest set of Central Bank exchange rates available via API.
Because auditing looks back at clients’ financial records and cross-border transactions, auditors need access to accurate historical exchange rate data in a convenient format (spreadsheets are the standard) in order to execute a thorough audit.
To complicate things, auditors often work outside their office visiting clients onsite across the globe. Because of this, auditors need a flexible cloud-based tool to provide access to historical exchange rates anytime and anywhere. The data should be also be downloadable and customizable in order to compare multiple currencies at one time as well as choose the type of rate needed, such as bid, ask, or midpoint, or use a specific Central Bank as the source of data on a case-by-case basis. The OANDA Historical Currency Converter does all this, and more. And with single seat and multi-seat contracts available, this tool is the choice of CPAs and large audit firms, alike.
Conversely, in a stationary setting, an API subscription is recommended, as auditors need accurate and reliable daily average exchange rates that automatically pre-populate within financial and reporting tools.
Hedge fund managers and fintech professionals use tick-by-tick foreign exchange data or a trading platform order book to power sophisticated and big data analysis and research for high-frequency trading, algo-trading, market modeling, interactive charting, financial tickers, backtesting, managing FX risk, and more.
Tick-by-tick data is updated every time an exchange rate changes – which can be many times a second – and delivers large batches of data on the millions of exchange rate movements throughout a single day. This type of data is used for calculations that require a true, real-time view of the FX landscape. The key here is to retrieve data from an actual market participant, such as OANDA, that can provide an absolutely accurate view of the market at any point in time.
In other instances, the OANDA trading platform order book can be used to view open FX orders (both buy and sell) as well as open positions for a period of time (the previous 24 hours is usually common practice). Open orders could be interpreted as an indicator of the price expectations that are contributing to natural resistance and support levels, while open positions could be an indicator of market reaction to price changes and the pressure on prices due to unrealized profit and loss. Order book data provides excellent stats and insights into foreign exchange market sentiment.
In the current economic environment, managing corporate financial risk and cross-border cash flows is not an easy task.
Multi-currency risk management was once a relatively straightforward part of the treasury job; however, persistent FX market volatility has changed all that. Now, CEOs, CFOs, and shareholders all watch currency management with a magnifying glass. Couple this with the burden of regulation and criticism over where treasurers are parking their cash, and it’s fair to say that the treasury specialists have been thrown into the spotlight. This means that treasurers who are masters of multi-currency cash management need a specific set of data to facilitate successful risk management as well as FX exposure summaries, FX gains and losses, hedging positions, and hedge coverage ratios.
This variety of FX and other financial data set may differ by use case but commonly includes:
With so many data sets in the mix, automation becomes an absolute necessity. Standard business procedures for finance and treasury professionals has evolved into an almost entirely automated environment. API delivery of data guarantees an uninterrupted flow of up-to-date information while offering flexibility to plug the data stream directly into ERP and treasury systems – all while maintaining accuracy of data and reliability of delivery. This is especially true for spot rates, which enable treasurers to select the exact time of day (or fixing) they need rates for as well as forward rates, which allow treasurers to lock in an exchange rate for the purchase or sale of a currency at a future date.
In a fast-moving global marketplace, retrieving current information in a reliable and secure data feed is most important – for both consumer- and business-facing applications. Whether an ecommerce website, personal banking app, or vendor management system, developers must now ensure their programs can execute accurate currency conversion and FX functionality. Developers are adjusting quickly to global best practices by building multi-currency functionality into products and software to power apps, pricing engines, and websites. Commonly, these devs utilize real-time rates but may also need daily averages, depending on the use case.
Real-time rates are commonly delivered via RESTful APIs, which provide data in formats such as JSON, XML, and CSV to best serve developers’ needs. These rates are updated every few seconds (every 5 seconds is common practice) to power digital products, apps, and websites.
Daily average rates are also commonly delivered via RESTful APIs and are usually used to provide the accounting and finance teams with automated exchange rates data for ERP, billing, and accounting systems.
The risk here is that a seemingly dev-friendly solution might be selected that does not also guarantee accuracy of the data, despite the lower cost. In truth, both dev-friendliness and accuracy are needed to avoid compromising the product or service quality and ultimately the company’s bottom line. It’s important to receive FX data from a provider who can deliver accurate data in an easy-to-integrate manner through a reliable infrastructure. Explore the OANDA API developer section to learn more.
Product managers will embed daily or real-time foreign exchange data within products, apps, or websites, with pricing localization being one of the most common use cases.
The choice between a daily or real-time feed will be dictated by the nature of the product or site and its sensitivity to movements of the FX market. For example, travel sites might use daily average FX rates to power global pricing engines or currency conversion, whereas financial websites may leverage real-time rates, updated every few seconds, in order to showcase currency trends or engage clients with interactive charting, all powered from current exchange rates data. There are an infinite number use cases for product managers who need FX rates for product development, most of which call for either of these two types of market data.
Price localization, one of the most common reasons product managers seek FX data, is a critical component of e-commerce platforms thanks to increasingly global transaction patterns. A study done by ProfitWell found that companies who fail to price their products in the local currency have a higher cart-abandonment rate and sell 30% less overall versus companies that localize their pricing for their clients. Pricing goods and services in the local currency not only increases sales, it also provides a higher-quality user experience, meaning that customers are more likely to shop and come back for more.
System reliability is crucial for these professionals who rely on a third party for the data that will ultimately power their products. It’s risky business to get data from unsecure and unknown sources or to integrate cheap FX solutions where data accuracy or the stream of data may be compromised. Due diligence on the vendor’s technology stack, support platform, and overall stability is key.
The seamless currency conversion feature on the new Samsung Galaxy Note8 means millions of devices globally are being powered by OANDA Rates®.
And who's powering YOUR apps?
In many cases, our API can easily be implemented within one business day. Our developer portal provides you with the tools you need to take full advantage of our Exchange Rates API including comprehensive documentation, sample code, and more.
We’re here to help! Our FX Specialists are available at 1-800-826-8164 or email us at email@example.com.
Contact us to discuss your Exchange Rates API needs.
You can start testing our Exchange Rates API in minutes. Once you submit a free trial form, you will receive a free API key to access the OANDA Rates. Your API key is available for 30 days and allows you to access up to 1,000 quotes during the period.